OPINION: Will Khashoggi media-trial against Saudi Arabia affect its economy?

By Advocate PA Hameed Padubidri

Most of the negativities stem from the “flush-button” of the world media. It’s indirect (though not direct) target taken up by global Dinosaurs including Iran, to hit the economy and leadership of Saudi Arabia.

It is said that the Saudi Arabian economy would badly get effected due to the withdrawal of foreign investment by business giants due to the present Khashoggi media trial.

However, looking closely at the current scenario, no such negative impact, as magnified, will be on the Saudi business market except minor temporary economical tremors.

A good number of international investments are still seen making smooth walk into the Kingdom. That’s what, most of the global economists opined and predicted.

TADAWUL (Saudi Stock Market) seemed to have been fallen for a day; but recovered shortly.

We can say that the base of Saudi Arabian economic is strongly footed and it’s powerhouse of global capital markets attracting fabulous returns. There is, in fact, stability and sustainability in its growth, that makes the confidence level of investors not to be withering away.

We can cite a list of reasons for that:

  • Powers are consolidated under the able leadership of Mohammed bin Salman
  • Significant attempt for localization of most of the activities including defense sectors-via transfer of technology
  • Red-taps are seen to be considerably reduced
  • Regulations providing for the investment protection are in place.
  • Legal systems are becoming more open especially commercial and business laws, anti-bribery law and above all, major reforms are taking place under the Saudi Arabian Vision-2030 etc.

These are all Key Performance Indicators.

Though, the reforms have few side-effects, particularly for SME (small-to-medium enterprise) businesses, but in the long run, it will stabilize the market with prosperous results.

Having said this, the global fear with regard to the investment in Saudi Arabia is just a tailwind. Most of the negativities stem from the “flush-button” of the world media. It’s indirect (though not direct) target taken up by global Dinosaurs including Iran, to hit the economy and leadership of Saudi Arabia. That’s why, most of the news media – electronic and print media – are chewing the same bubble gum that neither they spit nor gulp.

Advocate PA Hameed Padubidri is an Indian Lawyer, writer and freelance journalist from Udipi. He has worked as Legal Advisor in a Riyadh-based Saudi defense company in contracting department for the past 12 years.

Disclaimer: Views expressed by writers in this section are their own and do not reflect The Milli Chronicle’s point-of-view.