Disappearance of Jamal Khashoggi undermines Saudi Arabia’s PR effort

Now, after the disappearance of Khashoggi, the question has become: Can any amount of money protect Saudi Arabia’s careful image building?

While the war in Yemen, or the specter of businessmen locked away in a Riyadh Ritz Carlton, have sparked public outcry, no issue has been as relatable as the case of Khashoggi, the Center for International Policy’s Freeman said.

“I think from what I’ve heard this story has certainly broken through, and touched people who might not have been aware of everything that was happening in Yemen,” said Lydia Dennett, who researches foreign influence for the nonpartisan watchdog Project On Government Oversight.

“With Jamal, we get this heartbreaking story,” Freeman said. “He was making wedding plans. He was just hoping to get some paperwork so these two lovers could happily get married. And he just doesn’t come out, and she is waiting there for him.”

The fallout from Kashoggi’s disappearance has been unlike previous criticism of the Saudi government. A number of media organizations, including The New York Times and CNBC, have dropped out of an investment conference scheduled to take place in Riyadh later this month.

Even one of Saudi Arabia’s lobbying firms in the U.S., the Harbour Group, terminated its $80,000 a month contract with the country.

Freeman said that countries seeking to hire American lobbying firms generally have to pay increased rates if they could pose a problem for the company’s reputation.

Saudi Arabia, he said, was already paying that premium before Khashoggi disappeared, largely because of its actions in Yemen, where more than 1,200 children have been killed since 2015, according to UN figures.

“There is a correlation with the value of the contract and the terribleness of the government on the other end of that contract,” Freeman said. “There reaches a point where that cost benefit analysis, there is not an amount of money that a foreign government could pay these firms, that it would justify this reputational hit.”

There is precedent for such a scenario, in which lobbying firms simply abandon ship. By the end of the reign of Muammar Gaddafi, for example, few lobbying outfits were willing to work on behalf of the Libyan government. In 2011, zero Washington lobbying shops publicly admitted to holding such a contract.

Lobbying firms are notorious for keeping their cards close to their chest, and it will not be possible to determine for months whether any other contracts have been cancelled, unless the companies issue statements. But the outcry on Capitol Hill suggests that even if the firms continue their work, it will prove difficult.

Asked for comment on Friday, a spokesperson for Graham pointed CNBC to remarks Graham made on CNN earlier this week. Graham was asked whether he agreed with President Donald Trump, who said that blocking arms sales to Saudi Arabia would be a “tough pill to swallow.”

“Everything would be on the table,” Graham said.

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