The disappearance of Saudi journalist Jamal Khashoggi is hitting the Saudi economy.

Stocks plunged almost 7 percent in early trading on Sunday, wiping out all the gains it had made since the start of the year.

The fall comes a day after US President Donald Trump threatened 'severe punishment' if Saudi Arabia was found to be responsible for Khashoggi's disappearance, but Riyadh warned it would retaliate if economic sanctions are imposed on it.

As pressure mounts on Saudi Arabia, several US media organisations and business leaders have pulled out of a major investment conference in Riyadh. 

What was dubbed "Davos in the desert" is supposed to promote Saudi Crown Prince Mohammed bin Salman's reform vision for the Kingdom.

So, where does that leave all his plans?

 

Presenter: Imran Khan

Guests:

Khalid al-Khater - economist and researcher at the Institute for New Economic Thinking at the University of Cambridge

Naeem Aslam - chief market analyst at ThinkMarkets

Imad Harb - director of research and analysis at the Arab Center in Washington, DC

Source: Al Jazeera News