Softbank shares hit by fears of Saudi tech backlash
Softbank's close ties with Saudi Arabia are under scrutiny with shares in the company slumping 7pc 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 (£76bn) investment vehicle that has backed companies like 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 Khasshogi disappeared from the Saudi consulate in Istanbul.
Khashoggi vanished on October 2 after entering to obtain documents for his upcoming marriage.
The Saudi government denies any involvement. Turkish police have claimed that agents of Saudi Arabia killed Mr Khasshogi.
The rising political tensions have battered shares in Japanese conglomerate Softbank which fell 7.26pc to 9,251 yen.
It comes as some of the world's tech leaders, including Uber's Dara Khosrowshahi, said they would not attend the Future Investment Initiative conference, a showcase for investment in the kingdom, that is due to begin on October 23.
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 currently 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.
There were still questions over which tech executives would actually be in attendance after a number of them pulled out.
Softbank chief executive Masayoshi Son, Vision Fund chief Rajeev Misra and Arm Holdings CEO Simon Segars are all due to attend the Future Investment Initiative conference next week.
The Softbank boss is also an advisor on Saudi Arabia's planned tech mega city Neom, which is set for more than $500bn worth of investment.
On Sunday, Saudi threatened to retaliate if it is put under economic pressure as a result of Mr Khasshogi's disappearance.
Writing for the Al Arabiya network, Turki Aldakhil, who has close ties to the royal family, warned that the country could drive oil prices higher, triggering "economic disaster that would rock the entire world”.
