Saudis eyeing major deals in America
riyadh — The delegation of hundreds of Saudis that’s descended on the US for three weeks will meet executives from Amazon, Apple, Google, Pfizer and other companies as they hunt for foreign investment.
Crown Prince Mohammed bin Salman and his team will spend 18 to 19 days promoting Saudi opportunities, commerce and investment minister Majid Al Qasabi said in an interview in Washington, D.C., on Wednesday.
After Washington, the delegation will visit New York, Boston, Seattle, San Francisco, Los Angeles and Houston, he said. They’ll also be meeting with representatives from top banks including JPMorgan Chase, Morgan Stanley, Goldman Sachs Group, Citigroup and Bank of America, Saudi Finance Minister Mohammed Al Jadaan said in an interview.
“We have missed a lot of opportunities in the past,” Al Qasabi said. “We cannot afford to lose it now. We are racing with time.”
Attracting foreign investment is key to Prince Mohammed’s plans to overhaul the oil-dependent Saudi economy and diversify away from crude. On the first leg of the trip, his delegation has decamped at the Four Seasons Hotel in Georgetown, which has quickly become a center for hobnobbing of- ficials, analysts and businessmen — complete with Saudi cardamomscented coffee and dates on the lobby credenza.
Spread the word
“The whole team has a full schedule of meeting who’s who: companies, corporate America, lawyers, bankers,” Al Qasabi said. “The whole idea is to spread the word and spread the opportunities and explain if there is any misperception.”
The crown prince met with “leadership” from Boeing, Raytheon, Lockheed Martin and General Dynamics on Wednesday, according to a news release from the Saudi embassy in Washington. “Discussion focused on the shared interests of both nations for developing technology and growing trade and business ties.”
Besides business deals, the kingdom is also planning a dollar-denominated bond sale in the next few weeks, Al Jadaan said, adding
We have missed a lot of opportunities in the past. We cannot afford to lose it now. We are racing with time Majid Al Qasabi, Commerce and investment minister, Saudi Arabia
that the size of the sale has yet to be determined.
The kingdom has “almost hired” banks for the offering and is considering 5-year, 7-year, 10-year, 12-year and 30-year bonds or longer, he said. The government is looking at other currency options but sticking to dollar-denominated securities for now, he added.
The visit comes as the kingdom a declared crackdown on corruption, which left dozens of princes, billionaires and former officials jailed in November. Most of the detainees have since been released in exchange for financial settlements.
Al Qasabi dismissed concerns raised by some analysts over the government’s plans to take controlling stakes in Saudi companies whose executives were involved in the anti-corruption campaign. “The government is not taking over; the government has exercised its right through rule of law to return what is right,” he said.
“It did this pre-bargaining exercise through rule of law, and it was transparent.” — Bloomberg