Softbank’s end ties with Saudi Arabia are under scrutiny with
shares in the company slumping 7% as the Middle East nation comes under
increasing pressure over allegations it was involved in the death of a
journalist.
The Japanese technology giant’s Vision Fund,
a $100bn investment
vehicle that has backed companies such as Uber, has close links with
Saudi Arabia, a key investor.
However, the Saudi regime has come under fire from business leaders
and politicians after Washington Post columnist and critic of the regime
Jamal Khashoggi disappeared from the Saudi consulate in Istanbul.
Khashoggi vanished on October 2 after entering to obtain
documents for his marriage. The Saudi government denies any involvement.
Turkish police have claimed that agents of Saudi Arabia killed Khashoggi.
The rising political tensions have battered shares in Japanese conglomerate SoftBank, which fell 7.26% to ¥9,251 ($81.74).
It comes as some of the world’s tech leaders, including Uber’s Dara
Khosrowshahi, refused to attend the Future Investment Initiative
conference, a showcase for investment in the kingdom, held on October
23-25.
Tensions appeared to escalate further on Sunday evening as Bahrain
backed a campaign to boycott Uber, saying: “We will boycott those who
boycott Saudi Arabia.”
SoftBank’s Vision Fund is in talks for a further injection of $45bn
from the kingdom’s sovereign wealth fund. Saudi Arabia has also invested
in electric car giant Tesla.
- The Daily Telegraph
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