Multibillion-dollar deals expected as Saudi Arabia investment forum looks east

Participants watch a movie highlighting the Red Sea project at last year’s Future Investment Initiatives conference in Riyadh. (AFP)
Updated 25 October 2018
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Multibillion-dollar deals expected as Saudi Arabia investment forum looks east

  • The Future Investment Initiative is tipped to see big investment partnerships from Russia and China
  • The FII is a key event in showcasing Saudi Arabia’s investment opportunities and economy, and linking foreign and local businessmen

RIYADH: A major investment show in Saudi Arabia is expected to attract thousands of delegates and see deals worth hundreds of billions of dollars — despite several largely “symbolic” last-minute cancelations by speakers.

The Future Investment Initiative, which starts on Tuesday, is tipped to see big investment partnerships from Russia and China, despite several executives, mostly Western, pulling out after the killing of Saudi journalist Jamal Khashoggi.

Many of those Western firms have however sent lower-level representatives or regional heads — with big business likely to be done, Saudi officials said.

Speakers from the Russian Direct Investment Fund, Russia-China Investment Fund and electronics giant Samsung are all billed to speak at the event. They join Saudi speakers including Energy Minister Khalid Al-Falih, Yasir Al-Rumayyan, head of the Public Investment Fund (PIF), and sports official Princess Reema bint Bandar. 

“Investing in transformation,” “technology as opportunity” and “advancing human potential” are among the FII’s themes. Held at the Ritz-Carlton hotel in Riyadh, the three-day event is billed as a “blueprint for the 22nd century.”

Ellen Wald, president of the Transversal Consulting think-tank and author of the recent book “Saudi Inc,” said many executives — notably those from Russia and further east — were still looking to do business at the event despite some having pulled out.

“I think the big pull-out of CEOs is not really reflective of the corporate interest in the Kingdom because we see them sending their next level of executives along. So to some degree it is symbolic,” she told Arab News. “In terms of attracting foreign investment, Saudi Arabia could have strategic leverage with Russia and China, and a unique opportunity to work on cutting-edge technologies.”

John Sfakianakis, director of economic research at the Gulf Research Center in Saudi Arabia, said he expected the event to be a success. 

“The FII is a key event in showcasing Saudi Arabia’s investment opportunities and economy, and linking foreign and local businessmen,” he told Arab News. 


American Airlines ‘unaware’ of some Boeing 737 MAX functions until last week

Updated 15 November 2018
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American Airlines ‘unaware’ of some Boeing 737 MAX functions until last week

  • The FAA and Boeing are evaluating the need for software or design changes to 737 MAX jets
  • ‘Safety remains our top priority and is a core value for everyone at Boeing’

WASHINGTON: American Airlines Group Inc. said on Wednesday it was “unaware” of some functions of an anti-stall system on Boeing Co’s 737 MAX until last week.
Boeing and the US Federal Aviation Administration (FAA) issued guidance on the system last week after a Lion Air jet crashed in Indonesia on Oct. 29, killing all 189 people on board.
The FAA warned airlines last week that erroneous inputs from the system’s sensors could lead the jet to automatically pitch its nose down even when autopilot is turned off, making it difficult for pilots to control.
The system was designed to prevent the jet from stalling, according to information provided by Boeing to airlines.
“We value our partnership with Boeing, but were unaware of some of the functionality of the Maneuvering Characteristics Augmentation System (MCAS) installed on the MAX 8,” an American Airlines spokesman said.
“We must ensure that our pilots are fully trained on procedures and understand key systems on the aircraft they fly.”
Indonesian investigators said on Monday the situation the crew of a doomed Lion Air jet was believed to have faced was not contained in the aircraft’s flight manual. US pilot unions were also not aware of potential risks, pilot unions said.
The FAA and Boeing are evaluating the need for software or design changes to 737 MAX jets in the wake of the Lion Air crash, the regulator said on Tuesday.
The American Airlines spokesman said his airline was continuing to work with Boeing and the FAA and would keep pilots informed of any updates.
A Boeing spokeswoman said the manufacturer could not discuss specifics of an ongoing investigation but it had provided two updates for operators around the world that re-emphasize existing procedures to deal with situations relating to MCAS.
“We are confident in the safety of the 737 MAX,” she said. “Safety remains our top priority and is a core value for everyone at Boeing.”