The second edition of #PIF’s Asset Management Forum at #FIIRIYADH brings together prominent global leaders, experts, and investors to discuss opportunities and challenges in the asset management industry in Saudi Arabia. #FII8 #InvestedInBetter pic.twitter.com/eN7KQXG6k1
— Public Investment Fund (@PIF_en) October 26, 2024
Saudi Arabia will host the biggest names in finance and technology this week, testing investor appetite for the kingdom’s transformational ambitions amid widening regional conflict. International executives will face a region rocked by geopolitical tensions, with the threat of further military confrontation between Israel and Iran at its highest levels in decades. Notable speakers at the Future Investment Initiative (FII) include Larry Fink, David Solomon, and Benjamin Horowitz.
Deals worth over $28 billion are set to be announced during the event.
It gives me great pleasure to read my article, published on Arab News Website, talking about the forthcoming FII eight edition starting on Oct.29,2024.
I hope that you will enjoy reading it.@FIIKSA https://t.co/XzNS7PL4tJ— طلعت حافظ (@TalatHafiz) October 26, 2024
The event comes as Saudi Arabia, under the leadership of Crown Prince Mohammed bin Salman (MBS), seeks to position itself as a global business hub. However, the country is increasingly confronting the limitations of its vast oil wealth.
@Khalid_AlFalih, Minister of Investment in the Kingdom of Saudi Arabia, details some information on its investments in Africa, illustrating the country's positive outlook on the continent. Join #FII8 for insight from key change-makers: https://t.co/EhgUWS5ME5 pic.twitter.com/bZMlclBCE0
— FII Institute (@FIIKSA) October 28, 2024
Thousands of financiers, founders, and investors are set to descend on the Saudi capital of Riyadh for the eighth edition of the kingdom’s Future Investment Initiative. As Saudi Arabia moves full steam ahead with its focus on domestic investment, it has introduced more stringent conditions for foreigners coming to the kingdom to take capital elsewhere. The kingdom is taking clear steps to scale back spending, as oil prices fall well below its fiscal breakeven figure and it continues with crude production cuts agreed upon by OPEC+.
H.E. Mohammed bin Abdullah Al-Jadaan, Minister of Finance, Kingdom of Saudi Arabia, explains the importance of the New Africa Summit and investment in the continent. Join #FII8 for expert insight from change-makers: https://t.co/EhgUWS5ME5 pic.twitter.com/nYOqZfPzZo
— FII Institute (@FIIKSA) October 28, 2024
Described in past years by some attendees as a bonanza for Saudi cash, fund managers paint a distinctly different picture this year. The kingdom is simultaneously upholding more requirements for prospective fundraisers and investors while grappling with a revenue crunch amid lower oil prices and production. “Without question, it’s gotten way more competitive to attract money from the kingdom,” Omar Yacoub, a partner at U.S.-based investment firm ABS Global, which manages nearly $8 billion in assets, said.
“Everyone and anyone has been going to ‘kiss the rings,’ so to speak, in Riyadh.”
The kingdom’s $925 billion sovereign wealth fund, the Public Investment Fund, saw its assets jump 29% to 2.87 trillion Saudi riyals ($765.2 billion) in 2023, driven primarily by local investment. Saudi Arabia’s recently-updated Investment Law seeks to attract more foreign investment as well — setting a lofty target of $100 billion in annual foreign direct investment by 2030. Currently, that figure is still far from being met.
The glitzy conference, held in the opulent Ritz-Carlton Riyadh, also takes place against the backdrop of regional conflict.
Saudi Arabia’s investment ambitions tested
Just over a year after Israel launched its war on Hamas in Gaza, attacks between Israel and Iranian proxies, including Hezbollah and Yemen’s Houthis, have increased.
In September, Israel invaded Lebanon. The region has been on tenterhooks awaiting Israel’s avowed revenge against Iran for its missile attacks over Tel Aviv and other parts of the country on Oct. 1.
Early on Saturday, Israel struck military sites in Iran targeting missile manufacturing factories. Israel’s military later said it had completed “targeted” attacks in Iran, adding that it was ready to “conduct defensive and offensive action.” Oil prices and the Saudi economy appear to have remained largely unscathed, dropping 4% early Monday. A key reason for that may be the accord brokered by China in March 2023.
Saudi Arabia is set to announce substantial deals amounting to over $28 billion at this year’s FII Summit. The summit, themed “New Horizons,” is expected to attract executives and thought leaders from around the world, focusing on technology, energy transition, and other critical sectors. Attias highlighted that this year sees unprecedented participation from tech giants at the highest levels of representation, signaling a strong commitment to integrating AI into business strategies.
“If you don’t include AI in your processes, you could be potentially out of business in the next few years,” he noted. Reflecting on the FII’s history, Attias mentioned that over the past seven years, the initiative has facilitated deals worth $129 billion, with $28 billion expected to be signed in 2024 alone. This illustrates the FII’s growing role as a global hub where dialogues between the North and South, and the West and East, take place.
Despite the geopolitical tensions in the region, there is a prevailing sense of optimism and a strong desire to continue investing and forging new partnerships. Attias highlighted the resilience of the global business community, drawing parallels with the recovery post-COVID and emphasizing the continued drive to find solutions and invest for the common good. Analysts and attendees will closely watch how these tensions impact investor confidence and the broader economic landscape.
