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Officially, Jamie Dimon and Bill Winters are part of the long list of seasoned bankers who boycotted the flagship initiative for Saudi Arabia's future investments in Riyadh this week, as banks seek to stand out from the kingdom after the murder from journalist Jamal Khashoggi.
But in the corridors of the opulent Ritz-Carlton Hotel and the King Abdulaziz International Conference Center, all major investment banks are present. While the highest officials remained out of the way, all the banks sent delegations to show their commitment to Saudi Arabia in this time of crisis.
A huge pot of gold on the distant horizon is the reason why many jeopardize their public reputation by visiting the FII in this time of controversy. The kingdom has embarked on a huge overhaul of its economy, which is expected to result in dozens of mega deals – and billions of commissions for banks.
Nevertheless, the size and seniority of the delegations sent by the banks vary considerably. HSBC is by far the largest, according to a list of participants seen by IFR, with at least 15 bankers represented. Samir Assaf, head of his investment bank, even participated in a panel on the main stage.
Credit Suisse is another bank with a large delegation and 10 bankers. They are headed by Jim Amine, head of the investment bank of the Swiss bank. Amine and Assaf are the most seasoned bankers in the investment banking community to attend the conference.
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Other banks have sent much smaller – and lower – delegations. Most, including Goldman Sachs, Morgan Stanley, Bank of America Merrill Lynch, Citigroup and Deutsche Bank, have sent delegations of half a dozen bankers, mainly regional and Saudi Arabian bankers.
In contrast, JP Morgan has indicated only two of its bankers based in Riyadh. The US bank, which has won more than any other Saudi bank this year and last year, took what it considered the biggest position after the murder, with chief executive Dimon being the first major banker to withdraw.
Others, however, have an alternative explanation. "It was the citizens who won the last dollar with Saudi Arabia who were the first to withdraw," said a New York-based investor attending the conference. "Those who still do not earn much in the kingdom have been cautious."
Dimon's supposed ambitions to run for president of the United States were also cited.
It remains to be seen whether the public boycott will have an impact on future affairs with the kingdom. National oil giant Aramco is raising up to 70 billion USD to acquire a stake in Saudi petrochemical maker Sabic. No bank has yet been mandated to raise funds, although JP Morgan advises.
Some conference participants think the boycott could hurt the banks. "I think JP Morgan made a mistake," said a person who is currently working very hard on a multi-billion dollar project with the Saudi government. "This region is full of big egos who will remember all the affronts, especially the Saudis."
By sending a larger delegation, HSBC recognizes the importance of Saudi Arabia for its business model. The UK bank has made profits of US $ 3.7 billion in Saudi Arabia since 2008, according to data from Refinitiv, which includes US $ 3.4 billion recorded through SABB, a local subsidiary established in 1978.
Other banks are also listed as having small delegations. Barclays has only two bankers on the list of participants, UBS three and BNP Paribas.
However, it remains unclear to what extent the list of participants is final. The day before the start of the conference, the IFR spotted senior banker planes on a flight from London to Riyadh. These were not on the list of participants at the three-day event and were not seen at the conference.
In fact, apart from HSBC, all banks maintain an ultra-low profile. Many bankers stick to private meeting rooms, away from the media. Others are in Riyadh for meetings but stay away from the conference itself, according to some people present at the conference.
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