Abacus | Khashoggi killing could drive Saudi Arabia into China’s arms

Where Western executives fear to tread, Chinese companies will rush in

Reading Time:4 minutes

Dissident Saudi Arabian journalist Jamal Khashoggi was allegedly killed inside the Saudi Arabian consulate in Istanbul. Photo: AFP

Published: 9:45am, 20 Oct 2018Updated: 4:13pm, 1 Nov 2018

The disappearance of dissident Saudi Arabian journalist Jamal Khashoggi, and his alleged killing inside the Saudi consulate in Istanbul by a hit squad acting on orders from the highest levels of the royal family in Riyadh, could be a watershed moment for the country.

Over the last year, Western media have largely been full of praise for Saudi Arabia’s young crown prince Mohammed bin Salman, hailing him as a bold reformer for permitting women to drive and allowing cinemas to reopen. When MbS, as the prince is known, visited the United States in March this year, politicians and business leaders queued up to meet him, and to have their photographs taken with the new face of Saudi moderation and modernity.

But in the weeks since Khashoggi vanished, and as details of his gruesome demise have emerged, Western commentators have changed their tune. No longer is MbS a brave and liberal reformer, determined to bring the Saudi economy and society into the 21st century. The 33-year-old prince is now a repressive and brutal autocrat in the very worst tradition of Arab despots, determined to tolerate neither dissent nor criticism of his rule. This change of heart means far more than an end to photo opportunities for MbS with the likes of Mark Zuckerberg. It is likely to have far-reaching consequences for Western companies, the Saudi economy, and quite possibly for businesses in Asia.

It may not seem so at first. With US president Donald Trump reluctant to criticise the Saudi regime and emphasising the country’s importance as a buyer of US exports – largely weaponry – it might seem the whole affair will blow over with few lasting effects.

Western commentators have changed their tune on Saudi Arabia in the weeks since journalist Jamal Khashoggi vanished. Photo: AP

But that would be to underestimate the influence of vocal sectors of public opinion in the age of social media. Much as no one will ever again bankroll a movie produced by Harvey Weinstein, so it is hard to imagine high-profile Western business leaders accepting future investments of Saudi state capital, at least as long as MbS remains the effective head of government in Riyadh. Nor will they be lining up to invest their shareholders’ money in the Saudi economy.

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Where Western executives fear to tread, Chinese companies will rush in