The kidnapping in Istanbul, and possibly the assassination, of Saudi journalist Jamal Khashoggi in early October is turning into an international crisis. The Ryad regime belies its involvement, but Washington, London, Paris and Berlin are putting strong diplomatic pressure to make the truth about the dissident's demise.
Saudi Arabia has promised Sunday to respond to possible sanctions after the threat of "severe punishment" by US President Donald Trump, in case of proven involvement of Ryad in the disappearance of Saudi journalist Jamal Khashoggi.
This disappearance with global repercussions could have a significant impact on the program of reforms, especially economic, put forward by the Saudi Crown Prince Mohammed bin Salman. On Sunday, the Ryad Stock Exchange fell more than 7%, its most serious plummet in three years, before closing at -3.5%.
Threats of Trump
On Saturday, Donald Trump, a great ally of Saudi Arabia, for the first time considered possible the involvement of Ryad in the disappearance of Jamal Khashoggi, entered on October 2 in the consulate of his country in Istanbul to not reappear since.
If Ryad is responsible, there will be "severe punishment ," he warned.
His economic adviser, Larry Kudlow, stressed that the US president was "very, very serious . " "Believe it, if the Saudis are involved, if Khashoggi was killed or wounded or whatever, the consequences will be harmful . "
Ryad denies being involved
Ryad categorically denies any involvement in the journalist's alleged murder, a critic of Crown Prince Mohammed bin Salman, who collaborated with the Washington Post and was exiled to the United States since 2017.
"We totally reject any threat or attempt to weaken (the kingdom), whether through threats to impose economic sanctions or the use of political pressure , " said a senior unidentified Saudi official, quoted by the Saudi press agency SPA.
If sanctions are applied, the kingdom will respond with "greater" sanctions, warned the official. "The kingdom's economy has a vital role [...] for the global economy . "
The Saudi Embassy in Washington has issued a statement to emphasize that the kingdom "expresses its appreciation to all those who refrain from drawing a hasty conclusion on the current investigation, including the US administration" .
Turkish officials said the journalist was murdered in the consulate by Saudi agents. Ryad says he left the building.
Paris, Berlin and London put pressure
On Saturday, Ankara accused Ryad of not cooperating and not letting investigators access the consulate in Istanbul.
A Saudi delegation was scheduled to hold talks in Ankara with Turkish officials in the context of the investigation. Paris, London and Berlin have called for a "credible investigation" . "Defending freedom of expression and a free press, and ensuring the protection of journalists are key priorities for Germany, the United Kingdom and France," the heads of the three countries' diplomats said in a joint statement. .
On Twitter, the official account France Diplomatie recalled that the "defense of the freedom of expression and the freedom of the press, as well as the protection of the journalists are essential priorities for Germany, the United Kingdom and France . A message retweeted by Foreign Affairs Minister Jean-Yves Le Drian.
The defense of freedom of expression and freedom of the press, as well as the protection of journalists, are key priorities for Germany, the United Kingdom and France. https://t.co/uEiwp01PbE #JamalKhashoggi
- France Diplomacy (@francediplo) October 14, 2018Investors scalded
Since Wednesday, the Ryad Stock Exchange has lost a total of $ 50 billion in capitalization. Sunday, it has strongly unscrewed, Saudi investors reacting mainly to Donald Trump.
On Thursday, the Tasi index had already fallen by 3%, in the wake of a global panic that plunged Wall Street and Asian markets.
While investors were still excited a few weeks ago pharaonic economic projects of the crown prince, the Khashoggi case seems to have cooled some.
"There is a kind of uncertainty around the situation regarding the disappearance of Khashoggi, which causes the market to fall , " Mohammed Zidan, a strategy analyst for Thinkmarket in Dubai, told AFP.
British billionaire Richard Branson has announced freeze several projects in the kingdom. And prestigious partners announced that they will no longer participate in "Davos du désert" , the second edition of the "Future Investment Initiative" conference, scheduled for 23-25 October in Riyadh.
Dear Crown Prince, the event is shunned by media, such as the Financial Times, The New York Times and The Economist, but also the boss of Uber.
For many multinationals, going to this conference entails reputational risks that "outweigh the profits they could have made from the Saudi economy , " according to Michael Stephens of London's Royal United Services Institute. .
"The fact that leading participants are withdrawing has also had a negative impact on investor attitudes , " added analyst Mohammed Zidan.
According to analyst firm Eurasia, Ryad is now facing a "serious public relations crisis" and is about to "realize that it will be particularly difficult to contain the crisis that emerges" .