Saudi purge will quell critics but worry investors

Significance

This follows unprecedented arrests of senior princes, ministers and businesspeople in an anti-corruption purge beginning on November 4. The move has alarmed many in the ruling family and business elite, who had enjoyed relative impunity. However, it is so far broadly popular among a youthful Saudi population, who blame high-level corruption for economic problems and unemployment.

Impacts

• A slowdown in investment will make it even harder to meet the economic targets of Vision 2030 and launch the ambitious NEOM project.
• The combined strengthening and politicisation of anti-corruption mechanisms will complicate performing due diligence about Saudi partners.
• Opposition within the royal family is likely to be strong but muted in the short term, with an atmosphere of febrile rumour.