In the wake of the military escalation between Saudi Arabia and the Ansar Allah Houthi movement in Yemen, the Kingdom was forced to postpone or cancel a series of political, economic, cultural and sporting events that formed an essential part of its international agenda during the last months of 2026.
From investment summits to cultural festivals
The list of affected events included: the Gulf-European Summit in Riyadh, the Future Investment Initiative known as “Davos in the Desert,” the Misk Global Forum, and the Intersec exhibition specializing in security and safety, in addition to prominent sporting and cultural events such as the Asian Cup, the Saudi International Golf Championship, the Red Sea Film Festival, the “Soundstorm” music festival, and the “Joy Awards” ceremony for entertainment industries.
Although the organizers provided different justifications for each case, three factors appeared to be common in most of the decisions: security concerns, continued air traffic disruptions, and the difficulty of ensuring the participation of international guests and visitors.
Postponing the Asian Cup
The Asian Football Confederation announced the postponement of the Asian Cup, its most prominent continental competition, due to the security situation in the Kingdom of Saudi Arabia, which is hosting the tournament.
The tournament was scheduled to start next January, before it was announced that it would be postponed until the end of next year.
The Asian Cup is held every four years, and the most prominent men's national teams in the Asian continent participate in it.
The impact goes beyond just changing appointments
However, the impact of postponements is not limited to the loss of specific events, but rather extends to one of the basic pillars that Saudi Arabia has worked to build in recent years, which is presenting itself as a stable destination for business, investment, tourism and international events.
Since the launch of Vision 2030, the Kingdom has invested billions of dollars in attracting global conferences, sports tournaments and cultural festivals, as tools to enhance its international standing and diversify its economy away from traditional dependence on oil.
However, the postponement of a number of the most prominent of these events within a short period of time raises questions about the extent to which these efforts have been affected by recent security developments, especially in light of the continued attacks by drones and missiles, the closure of King Khalid International Airport in Riyadh for intermittent periods, and the subsequent logistical disruptions that affected travel and access to the Saudi capital.
The head of the Gulf Research Centre, Dr. Abdulaziz bin Saqr, considered that security and stability represent an absolute priority for the Kingdom and the basic condition for the continuation of investments, economic, tourism and religious activities. He pointed out in an interview with BBC Arabic that the Kingdom’s reception of millions of pilgrims annually makes maintaining security a crucial factor to ensure the continued flow of visitors and that travel is not affected. He considered that the current cancellation or postponement measures are temporary and aim primarily to protect people and ensure their safety. He said: “When the Kingdom felt there was a threat, and that these strikes targeted vital facilities such as Riyadh Airport and some other vital facilities, it stopped flights because its primary concern was the issue of security and safety in the first place.” There is nothing equivalent to this matter whatsoever,” he said.
Are investors hesitant?
Observers believe that postponing events of the size of “Davos in the Desert” has dimensions that go beyond the organizational aspect. The conference, which has transformed over the past years into a major platform for attracting international investors and major companies, represents an economic and political interface that reflects the Kingdom’s economic ambitions.
Hence, its postponement may be viewed as a temporary negative signal regarding the level of risks, especially for international companies that are subject to strict security and insurance policies that determine the permitted travel destinations for their executives.
In this context, Abdulaziz bin Saqr believed that the Kingdom possesses strong elements that support the continued flow of investments and attract more investments, including its geographical location, natural resources, and a broad economic and industrial base. He stressed that the return of investment does not represent a problem due to the availability of these components, noting that the Kingdom is enhancing its security by building defense capabilities and developing regional and international partnerships and alliances.
He added to the BBC: “The Kingdom seeks to establish the best relations with neighboring countries, and has never attacked any neighboring country. It has also built defense capabilities and systems capable of defending its lands, and established regional and international partnerships and alliances that strengthen the concept of national defense.”
Michael Ratney, the former US ambassador to Riyadh and currently senior advisor at the Center for Strategic and International Studies in Washington, for his part, told BBC Arabic that a large part of the Saudi economic model is based on neutralizing the repercussions of regional conflicts and keeping them as far away from the Kingdom as possible. He explained that preserving the Kingdom's image as a safe and stable country is an essential factor in attracting investors, tourists and other visitors who contribute to the process of economic transformation. He added: "It is clear that the war has already left its effects, and it is sufficient to cite the postponement of the Future Investment Initiative and other major events."
Ratni considered that the Kingdom finds itself facing a real dilemma in light of the continued attacks with missiles and drones carried out by the Ansar Allah Houthi movement against the Kingdom’s airports, and the resulting civilian casualties and damage to the energy infrastructure, according to him. He added: "Therefore, Saudi Arabia must respond militarily. But the Saudis also realize that the Houthis have the ability to respond by unconventional means and cause significant damage. Therefore, while I believe that Saudi Arabia will continue to exert military pressure on the Houthis, it will ultimately need to find a way out and calm the conflict."
The experience of 2018.. Will it be repeated?
However, postponing events does not necessarily mean a decline in international interest in the Saudi market.
In 2018, the Future Investment Initiative faced a widespread boycott from Western political and economic figures following the murder of Saudi journalist Jamal Khashoggi in his country’s consulate in Istanbul. Despite the media and political pressure surrounding the conference at the time, the Kingdom later succeeded in regaining momentum and attracting investments and deals worth about fifty billion US dollars.
This experience indicates that economic considerations often prompt investors to reevaluate their positions when huge investment opportunities become available. However, the difference this time is that the challenge is related to the security situation on the ground more than to the Kingdom’s media or political image or its human rights file.
Therefore, it can be said that security threats differ from media or political crises. While investors can overlook some political considerations if the economic opportunities are lucrative, the direct risks associated with the safety of individuals and infrastructure become a more sensitive factor in the calculations of international companies and institutions.
A test for Vision 2030
Michael Ratney, former US ambassador to Riyadh and senior advisor at the Center for Strategic and International Studies, based in Washington, suggested that postponements of various events and activities would affect the Kingdom’s efforts in the near term, but he stressed that these repercussions would not change the strength of the Saudi model in the long term. He explained that the Kingdom continues to work to reshape its economy and society in preparation for the post-fossil fuel era, considering that the path of economic transformation remains in place despite the current challenges. He added: "There is no doubt that the current conflict is extremely frustrating, but the reality is that the Saudis have no choice but to continue on their path toward economic diversification and societal transformation."
