Saudis seek to ease investor concerns after royal purge

RIYADH: Saudi Arabia has sought to allay fears among investors after an anti-corruption purge that swept up a host of business and political titans, with concerns mounting that the arrests could trigger political instability. Billionaire tycoon Prince AlWaleed bin Talal, dubbed Saudi Arabia’s Warren Buffett, was among dozens of high-profile figures arrested or sacked at the weekend, in the biggest purge of the kingdom’s elite in its modern history.

Authorities have frozen the bank accounts of the accused and warned that assets related to the corruption cases-potentially worth billions of dollars would be seized as state property, as the government appears set to widen the crackdown. The purge triggered uncertainty among businesses that could lead to capital flight or derail reforms, experts say, at a time when the kingdom is seeking to attract badly needed investments to offset a protracted oil slump.

The central bank stepped in this week to soothe those concerns, insisting that the targets were errant individuals and not entire corporationsnot even those with ties to the arrested businessmen. “Corporate businesses remain unaffected. It is business as usual for both banks and corporates,” the central bank said. The Saudi Arabian General Investment Authority (SAGIA), whose former chief Amr Dabbagh was reportedly among those arrested, sought to drum up support for the anti-corruption drive, saying it would create “a fair and level playing field for all investors”.

“This is a clear sign that the kingdom is ready to protect... investments from legally reprehensible actions,” the investment authority said. —AFP