It’s a big week for Saudi Arabia, as Crown Prince Mohammed bin Salman heads to DC to meet US President Donald Trump on Tuesday. This meeting is especially important for the kingdom, as the kingdom seeks to reinforce its investment in the United States. The Public Investment Fund (PIF) controls an astonishing $925 billion in assets. Saudi Arabia hosted a 7th Entrepreneurial Summit in 2021 on the Kingdom’s aspirations to invest heavily into artificial intelligence (AI), healthcare and education.
Saudi Arabia is under growing domestic and international pressure to diversify its economy beyond oil. The urgency for this has increased, particularly after having lived through a drop in foreign direct investment for three straight years. As global oil prices have recently dropped, the kingdom’s finances are under even greater duress. In response, officials are scrambling to attract other investments as quickly as possible.
During his first term, as if to underscore just how important this relationship is, Trump made Saudi Arabia his first trip abroad as president. He has set a wildly ambitious goal of attracting $1 trillion of the kingdom’s investments to the US. Part of that plan includes spending more on American military equipment.
Investments made by the PIF so far in the US include: Saudi Arabia has been enthusiastic about deepening these partnerships as Mr. This ambitious plan aims to diversify the kingdom’s economy and lessen its reliance on oil through investment in building, infrastructure and technology.
These policy conversations would further open the door to robust economic integration between their two countries.
“President Trump wants the announcement [of more Gulf money for the US],” – Karen Young
Politico advises that the Trump administration is doing some heavy lifting to cut red tape for these public-private investment partnerships.
“The Trump administration is initiating procedures to facilitate those deals. So, it’s expected that this process will improve immediately,” – Ali Shihabi
These possible investments will deepen bilateral relations even further, adding great momentum to an already positive bilateral relationship. They will catalyze co-development in the kingdom and the US.
At least, this is the emerging appetite that we are hearing from Saudi companies and their desire to work with US companies. This desire is a perfect match for Trump’s stated goals of increasing job creation and domestic manufacturing in the heartland states of America.
“There is a very big appetite for Saudi companies to collaborate with American companies,” – Huthaim Al Jalal
Beyond the economic incentives, political pressures are a huge driver of this partnership. In reality, the US has never really stopped supplying arms to Saudi Arabia, despite the rhetoric. Last year, in 2021, this administration began to push back on this association by stopping the sale of offensive weapons to Riyadh, citing its role in the conflict in Yemen. A US intelligence report directly implicated Crown Prince Mohammed bin Salman in the killing of journalist Jamal Khashoggi. This unexpected announcement has only compounded the challenges to diplomatic relations.
In defiance of these discrepancies, both countries seem eager to build up their bilateral trade preferences. As they thoughtfully address these challenges, the next meeting holds the potential to be a watershed for building a deeper partnership.
“These deals will further integrate the Saudi and US economies together, joint ventures in the kingdom, in the United States, procurements of American weapons and goods,” – Ali Shihabi
Saudi Arabia has dramatically stepped up its plans to inject cash into booming industries, such as artificial intelligence and healthcare. It is working hard to become a global center for technology. This strategic shift is vital for attracting international capital and expertise while positioning itself as an influential player on the world stage.