ABU DHABI: The Milken Institute MENA (Middle East and North Africa) Summit in Abu Dhabi kicked off with a strong defense of Saudi Arabia and its investment prospects from a close personal adviser to US President Donald Trump.
Asked about investment prospects in the Kingdom in the wake of the death of Saudi journalist Jamal Khashoggi last year, Thomas Barrack, executive chairman of private equity group Colony Capital, told participants at the event in the UAE capital that the reaction reflected a “misunderstanding” on the part of the West.
He cast Western reaction in the context of a “brilliant new leader stepping in” and launching the debate about the future of oil dependency as part of the Vision 2030 strategy.
“Is the oil better in the ground, or better to pump? Do you want to quench that thirst of the West and end up with buildings that are empty, with industries that aren’t viable, with trade agreements that aren’t feasible?” Barrack asked.
“In a transition, bold action is required ... I was in Saudi Arabia last week ... It’s amazing what’s happening, but it doesn’t happen easily. Is the West applauding? It’s not applauding because the West is confused and has always been confused. For us (the West) to dictate what we think is the moral code there (in Saudi Arabia), when we have a young man and a regime that’s trying to push themselves into 2030, I think is a mistake.”
Other businesspeople on the opening panel also defended the Saudi position.
Mohamed Alabbar, founder of the Emaar property empire who also operates e-commerce businesses in Saudi Arabia, said: “You have to be brave to take the changes that are in place in Saudi Arabia. What’s going on there is deep and it’s risky. There was a problem with terrorism, and (Crown Prince) Mohammed bin Salman came in with a big hammer and hit them hard.”
Alabbar added: “It’s a really healthy change that’s going on in Saudi Arabia, and there’s no other solution.”
Naguib Sawiris, the Egyptian founder of the Orascom Group, said: “I’m a big fan. I love Saudi Arabia. The crown prince has been my dream, allowing women to drive, allowing entertainment and opening up the economy.”
The opening session was unanimous that the prospect of a trade war between the US and China was the most serious threat that the global economy faced.
However, Alabbar was also worried about the social disruption going on in Europe with the “yellow vest” protests in France. “Inequality is attacking us,” he said.
Barrack said of the prospect of increased protectionism in global trade: “I think it’s a bad thing. We’ve all lost the essence of reality, the cultural tapestry of each country doing something for reasons other than just themselves.”
Sawiris held out the prospect of a rapid recovery in global trade once the current US-China dispute was settled.
“I’ve been put off doing business in China because of its protectionist practices. Once they settle their dispute, I’ll be able to go to China and do business,” he added.
