Switzerland's finance minister is taking a delegation of Swiss bankers and diplomats on a four-day visit to Saudi Arabia and the United Arab Emirates. The move comes amid a corruption crackdown in the kingdom.
Swiss finance minister Ueli Maurer and top tax diplomat Joerg Gasser are taking a group of Swiss bankers to Riyadh and Abu Dhabi from Saturday to Tuesday for four days of talks, the Swiss government said in a statement last Friday.
On Monday in Riyadh, the Federal Councillor signed a double taxation agreement with Saudi Arabia. The visit to Saudi Arabia also made it possible to pave the way for financial dialogue between the two states. In the United Arab Emirates, the visit will likewise serve to intensify bilateral cooperation in financial and tax matters.
Crackdown on Corruption
The unexpected visit comes against the backdrop of a Saudi Arabian crackdown on corruption led by 32-year-old Crown Prince Mohammed bin Salman. Hundreds including Prince Alwaleed bin Talal, one of the kingdom's richest men, were rounded up and held in the Ritz-Carlton before paying to be released.
The 50 billion riyal ($13.3 billion) proceeds of arresting were earmarked towards helping Saudi Arabians with the rising cost of living, it emerged recently.
Suspicious Transactions
Swiss banks rely heavily on business in the Middle East and the kingdom's wealthy in particular. The corruption probe had led to several report suspicious transactions towards year-end.
The Swiss government said finance minister Maurer would meet with his counterparts in Riyadh, Mohammed al-Jadaan, and Dubai, Hamdan bin Rashid Al Maktoum. Other meetings are slated between central bank representatives, financial regulators, and bankers themselves.
Achieve a Public Image
In Saudi Arabia, the talks are meant to pave the way for financial dialogue between the two states, the government said, without directly referencing the corruption crackdown. In the United Arab Emirates, the visit aims to intensify bilateral cooperation in financial and tax matters.
«Swiss financial institutions have a strong presence in these markets. To improve the framework conditions, it is desirable to achieve a public image that is as consistent and effective as possible together with the sector,» the government said. Roughly a dozen undisclosed Swiss financial firms will accompany Maurer and Gasser on the visit.
