Saudi Arabia’s wealthy sneak money offshore
The Riyadh Ritz-Carlton hotel crackdown has had a disastrous impact on private investment, the cornerstone of the Crown Prince Mohammed bin Salman’s reform plan
Dubai — The murder of Saudi columnist Jamal Khashoggi last month has soured the world’s politicians on the once-feted Crown Prince Mohammed bin Salman. Private capital turned against him long before that. Ever since dozens of royals and business chiefs were detained in November 2017 as part of a declared crackdown on corruption, a growing number of rich Saudis have been trying to move money out of the kingdom or draw up plans to leave, according to interviews with more than 10 people familiar with the matter. They all spoke on condition of anonymity because the issue is sensitive. Saudis who stayed put are mostly parking their cash instead of increasing investments, adding to the headwinds buffeting the biggest Arab economy. Khashoggi’s killing has only intensified the trends, some of the people said. Prince Mohammed’s grip on power has survived Khashoggi’s death at the hands of government agents in Istanbul. But losing the confidence of local elites could wreck his most fundamental...
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