With JP Morgan and Ford too, pulling out of a high-profile conference in Riyadh over the disappearance of journalist Jamal Khashoggi from its consulate in Istanbul, Saudi Arabia has said it will retaliate against any sanctions.
Khashoggi had gone missing on October 2 after entering the Saudi consulate in Istanbul to get papers needed for his marriage to his fiance. He is presumed to have been murdered. Khashoggi was a Washington Post contributor and US permanent resident whose writings have been critical of the powerful Saudi Crown Prince Mohammed bin Salman. Turkish officials have said they believe Khashoggi was killed inside the consulate, but Saudi Arabia insists he left the building safely.
The disappearance has led to diplomatic standoff between the United States and Saudi Arabia with President Donald Trump threatening Saudi Arabia with "severe punishment" if Saudi is indeed behind Kashoggi's death.
Germany, United Kingdom and France have come together to demand answers from the Saudi government. The countries have demanded that the kingdom give a complete and detailed response on Khashoggi's disappearance.
Riyadh vowed to hit back against any action. “The kingdom affirms its total rejection of any threats and attempts to undermine it, whether through economic sanctions, political pressure or repeating false accusations,” it said.
“The kingdom also affirms that if it is [targeted by] any action, it will respond with greater action.” The statement also pointed out that the oil-rich kingdom “plays an effective and vital role in the world economy”.
Meanwhile, Saudi Arabia's riyal was quoted at 3.7514 to the US dollar in the spot market early on Monday. This is the weakest rate since June 2017.
Many companies, including CNN and Bloomberg, have pulled out of the investment conference to be held next week in Riyadh dubbed as "Davos in the desert". Business barons including British billionaire Richard Branson and Uber CEO Dara Khosrowshahi too have pulled out.
Jamie Dimon, the powerful boss of JP Morgan, on Sunday became the latest to say he would not be attending. Ford chief executive Bill Ford also announced he would not be going. Neither gave a reason for the cancellations.
