Saudi stocks fall as tension with U.S. increases over Khashoggi case

Saudi stocks fall as tension with U.S. increases over Khashoggi case

While an earlier generation of Saudi leaders, like, invested billions of dollars in blue-chip companies in the United States, the kingdom's new crown prince, Mohammed bin Salman, has shifted Saudi Arabia's investment attention from Wall Street to Silicon Valley. The losses have wiped out all the market's gains in 2018, CNN said.

For more than two years, the kingdom has been on an ambitious plan to modernize and diversify its economy away from oil.

Prince Mohammed, King Salman's son, has aggressively pitched the kingdom as a destination for foreign investment.

Sheikh Abdullah reiterated the UAE's unequivocal stance with Saudi Arabia in whatever policies it sets and tremendous efforts it exerts to counter the various risks and threats besetting the global community, particularly extremism and terrorism.

The index suffered its biggest intraday decline since December 2014, when oil prices were crashing, with the Gulf region's biggest petrochemical producer, Saudi Basic Industries, tumbling as much as 7.9 percent, Reuters said. That means that stocks traded in Saudi Arabia can now be included in broader funds, making it easier for investors around the world to put their money into the kingdom's economy.

Representatives of the Saudi government have already come out fighting, strongly denying any involvement in the journalist's disappearance. Turkey's government claims he was murdered by Saudi authorities and then dismembered.

In response to the US' threatened measures, Saudi Arabia is retorting with threatening measures of their own, highlighting a list of 30 potential counter-moves if the USA strikes out against them.

And a huge investment conference dubbed "Davos in the Desert", scheduled for later this month, has seen some leading speakers and participants drop out.

In an interview aired Sunday, Trump told CBS' "60 Minutes" that Saudi Arabia would face strong consequences if involved in Khashoggi's disappearance.

Saudi Arabia says it rejects any "threats" of economic sanctions or political pressure after President Donald Trump's comments on the disappearance of Jamal Khashoggi. Hunt later said that if Saudi Arabia were proven to be guilty, "we would have to think about the appropriate way to react in that situation". "We believe it is not warranted given the long term relationship between the two countries, and Saudi being the swing oil producer". Some analysts worry that SoftBank's Saudi ties could make it less popular with startups.

Son spoke at the conference last year, and several SoftBank executives were listed as participating this year before conference organizers removed all the names from the program posted online.The company hasn't responded to repeated requests for comment on whether its executives still plan to attend this year's gathering.

Uber CEO Dara Khosrowshahi has said he plans to take the company public in the second half of 2019.

Trump dispatched Secretary of State Mike Pompeo to meet King Salman over the case that has strained the Americans' relationship with the Saudis, carefully cultivated by the USA president.

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