After the tragic assassination of journalist Jamal Khashoggi, the business world witnessed a significant shift in its stance towards Saudi Arabia. Once a subject of shunning and behind-the-scenes deals, Saudi Arabia's influence has now come out into the open. This article delves into the complex relationship between Saudi Arabia, its sovereign wealth fund, and the global business community.

Unraveling the Saudi Business Tapestry in the Wake of Khashoggi's Assassination

Wall Street's Fete for Saudi's Al-Rumayyan

On November 14, Wall Street celebrated Yasir Al-Rumayyan, the head of Saudi Arabia's nearly $1 trillion sovereign wealth fund. At Cipriani, a private members' club, bright flowers and ruby-red drapes set the stage. This event marked a significant moment as Saudi investment capital continued to percolate through the American economy. Despite the past shame associated with Saudi funding after the 2018 Khashoggi murder, it seemed to have faded. Few noticed the governor of the Saudi Public Investment Fund receiving an award in Manhattan.The president of Google's parent company, Alphabet, presented Al-Rumayyan with a large crystal paperweight. Among the attendees were notable figures like HuffPo founder Arianna Huffington, hedge-fund titan Ray Dalio, Hollywood superagent Ari Emanuel, former Trump adviser Dina Powell McCormick, and Uber CEO Dara Khosrowshahi.However, the evening's theme of "Champions of Change: Values in Practice" seemed incongruous for Al-Rumayyan, who is a lieutenant to one of the world's most brutal rulers. The whole event managed to avoid greater scrutiny due to the normalization of Saudi power in the United States under successive presidents.

Saudi Arabia's Investment Prowess

In 2023 alone, the Public Investment Fund spent $31.6 billion worldwide and holds about $20 billion worth of US stocks. Beyond its high-profile projects like Neom and gifting to Jared Kushner, PIF is planning a staggering $40 billion AI fund. Its venture capital arm also invests heavily in Wall Street stalwarts and Silicon Valley firms.Hala Aldosari, a Saudi activist in exile, emphasized that there is no distinction between the Saudi fund's money and the de facto ruler, Mohammed bin Salman. This shows the deep integration of Saudi power and its financial might in the global economy.

Human Rights Concerns in Saudi Arabia

In Saudi Arabia, basic freedoms have not improved since Khashoggi's assassination. The regime's crackdown on women's rights activists has accelerated, with longer prison sentences for even low-profile cases. Human Rights Watch has documented how the Public Investment Fund has enabled internal clampdowns.One Saudi entrepreneur based in the US highlighted the financial and reputational risks for Western corporations engaging with the Saudi sovereign wealth fund. The absence of reliable dispute resolution mechanisms leaves companies vulnerable to arbitrary practices.

Business Expansion in Saudi Arabia

In anticipation of the changing landscape, many American and international companies are expanding their dealings in Saudi Arabia. Even the consultancy founded by Madeleine Albright has opened a headquarters in Riyadh.The Ritz Carlton, once a site of MBS's detention facility, is now hosting big business again. At the annual summit in Riyadh, known as Davos in the Desert, billionaires like Dalio, Fink, Griffin, Rowan, Schmidt, and Schwarzman gathered. Elon Musk also appeared by video.The public panels focused on innovation and financial trends, avoiding politics. But it was clear that these gatherings were more than just business events.

Al-Rumayyan's Financial Influence

Attendees told The New York Times that a small check from Al-Rumayyan could amount to $100 million. The Saudi fund's venture arm backs 143 startups and various companies. PIF says $70 billion of agreements were inked at the October confab, including a partnership with Google Cloud.Ruth Porat, the president and chief investment officer of PIF, sat on a panel with Al-Rumayyan in Riyadh. Later, she presented him with the Eisenhower Award for Global Transformation in New York. But the question remains: what values does Saudi investment truly represent?

Looking Ahead

Days later at Madison Square Garden, Al-Rumayyan chatted with President-elect Trump at an Ultimate Fighting Championship match. It's likely that in Trump's second term, there will be more galas for Al-Rumayyan, and a full state visit for MBS is on the horizon.We must be vigilant and hold Saudi Arabia accountable for its actions. The Nation will continue its work of exposing and proposing, nurturing investigative reporting, and standing together as a community.We have a remarkable 160 years of bold, independent journalism, and our mandate remains the same—to uphold democracy and freedom and envision a better future.