Houthi-Saudi war: Saudi investment drive hit by escalating regional war

Saudi Arabia's flagship investment conference has become the latest casualty of what's unfolding between Saudi Arabia and the Houthis as those tensions skyrocket. Riyadh has now postponed the Future Investment Initiative, widely known as the Davos in the Desert, until 2027. And this postponement also puts a spotlight on that growing challenge for the kingdom, sustaining investor confidence while the security risks associated with the attacks threaten business activity. Let's tell you more about this event. The 10th edition of the event was scheduled to take place in Riyadh from October 26 to 29. The conference basically brings together global investors, business leaders, policy makers. Organizers said the postponement would help ensure the event delivers the scale and impact expected by the participants. But the security risks have emerged as the biggest flashpoint reportedly. A new date is expected to be announced soon. Remember, this decision comes amid the escalation in attacks by the Houthis. The damage done on the Global Investor Conference is directly impacting the kingdom's 2030 vision as well. And the attacks have included critical infrastructure, including military installations, energy hubs, Aramco's headquarters, Riyadh's international airport. The Saudi-led coalition has accused the Houthis basically of targeting Riyadh airport 20 times in October alone, 20. The airport's closure has disrupted travel with airlines exploring alternative routes and some travelers using airports in neighboring Gulf countries. Government offices, businesses have also been impacted amid the heightened security concerns. The postponement also adds to the disruption affecting Saudi Arabia's economic diversification plans. The kingdom has used FII conference for nearly a decade now to try and attract foreign capital and promote investments beyond oil, including tourism, sports and technology. And this year's expected speakers included Goldman Sachs chief, Standard Chartered chief, Citi chief, among others. Organizers had considered a hybrid format, but reports said major banks and private equity firms had raised concerns about the safety of attending in person. Earlier, the second summit between the European Union and the Gulf Cooperation Council, planned for October 24th in Riyadh, was postponed amid continued threats. Other major events, including a tennis tournament, Riyadh Fashion Week and the Red Sea Film Festival, also remained stranded. Now the UK will deploy Typhoon jets to defend Saudi Arabia in response to the escalating Houthi missile and drone attacks. The UK government has said this. The defensive mission will help defend Saudi cities and infrastructure, a move authorised by the Prime Minister, against aerial attacks by the Iran-backed group.