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Outrage over missing Saudi journalist may doom investors meet, arms sales

A collage of a poster from the Twitter handle of the Future Investment Initiative and a demonstration in front of the Saudi Arabian consulate in Istanbul (AFP)

Nearly 10 days after a dissident Saudi journalist went missing after going to the kingdom's consulate in Istanbul, outrage over the incident is extending beyond diplomatic circles.

There is a growing chorus for action against the Saudi government over the disappearance of Jamal Khashoggi, whom critics allege may have been abducted or killed on the orders of Crown Prince Mohammed Bin Salman, widely considered the key driver behind most policy decisions in the kingdom now.

Business organisations have started withdrawing from an upcoming major investment summit in Saudi Arabia, while arms manufacturers in the US are fretting over possible restrictions on a country that has been their largest market for decades.

In recent days, several major business and media organisations have announced they would not participate in the upcoming Future Investment Initiative (popularly called 'Davos in the Desert') conference in Riyadh from October 23 to 25. The meet aims to stimulate investment commitments to modernise the Saudi economy and move it beyond its dependence on oil.

Uber CEO Dara Khosrowshahi announced he would not be attending unless “a substantially different set of facts emerges” over the disappearance of Khashoggi. Saudi Arabia had invested $3.5 billion in Uber in 2016. Robert Bakish, the CEO of Viacom, the US film and TV media company, has also announced he would be withdrawing from Davos in the Desert.

Major media outlets, including the New York Times, The Economist and The Los Angeles Times all announced they are withdrawing from Davos in the Desert in the wake of Khashoggi's disappearance.

US Treasury Secretary Steven Mnuchin has reiterated his intention to attend the Davos in the Desert conference. However, senior US politicians, including House Foreign Affairs Committee Chairman Ed Royce and Ranking Member Eliot Engel, have demanded Mnuchin cancel his participation at Davos in the Desert.

Meanwhile, several members of the US Congress, cutting across party lines, have called for restrictions on arms sales to Saudi Arabia, the biggest client of Washington's arms industry, over the Khashoggi incident. Last year, President Donald Trump had announced $110 billion worth of arms deals with Saudi Arabia. Currently, nearly $19 billion worth of arms deals have been officially notified to Congress, including training for Saudi personnel and a missile defence system worth nearly $15 billion.

Recently, Democrat Congressmen had placed 'holds' on several arms deals with Saudi Arabia on account of allegations of civilian deaths in the conflict in Yemen. Arms manufacturers such as Lockheed Martin, Boeing and Raytheon are worried whether the restrictions will expand to major equipment, following the disappearance of Khashoggi.

Responding to calls to restrict arms sales to Saudi Arabia over the Khashoggi issue, Trump said on Thursday, he was wary of halting supplies as it would only push the kingdom to approach China and Russia. Trump announced on Friday he would talk to the Saudi King about the disappearance of Khashoggi.

(With agency inputs)