ECONOMY

SAUDI REINFORCES STRONG TRADE RELATIONS WITH US

United States president Donald Trump’s landmark visit in May to Saudi Arabia – the first state visit of his second term – resulted in a flurry of deals, ranging from defence to artificial intelligence (AI).

His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, crown prince and prime minister of the Kingdom of Saudi Arabia, and the US president also co-chaired a Saudi-US Summit at Al-Yamamah Palace in Riyadh during the high-profile visit. 

The summit focused on enhancing the strategic partnership between the two nations, discussing bilateral ties, regional developments, and international issues of mutual concern. A key outcome was the signing of their strategic economic partnership agreement. 

During the summit, leaders of both nations witnessed the exchange of a series of deals and memoranda covering a wide range of sectors, including a memorandum of understanding (MoU) between the Saudi Ministry of Energy and the US Department of Energy, exchanged by minister Abdulaziz bin Salman and department secretary Chris Wright. 

A memorandum of intent to advance Saudi defence capabilities, exchanged between Mister of Defence Khalid bin Salman and Secretary of Defence Pete Hegseth.

“Underscoring our commitment to strengthening our defence and security partnership, the United States and Saudi Arabia signed the largest defence sales agreement in history – nearly USD 142 billion, providing Saudi Arabia with state-of-the-art warfighting equipment and services from over a dozen US defence firms,” according to a White House statement.

Meanwhile, an MoU between Saudi Arabia’s Ministry of Industry and Mineral Resources and the US Department of Energy was also signed. The countries also inked a letter of intent to deepen cooperation on ammunition, maintenance, training, and modernisation for the Saudi National Guard, as well as a NASA–Saudi Space Agency agreement on CubeSat deployment for the Artemis II mission. 

“Saudi Arabia’s CubeSat will measure aspects of space weather at a range of distances from Earth and deploy in high Earth orbit from a spacecraft adapter on the Space Launch System rocket after the Orion spacecraft is safely flying on its own with its crew of four astronauts,” according to a White House statement. 

Some of the other deals included AviLease, a Riyadh-based global aircraft leasing company, announcing its first direct order with an original equipment manufacturer, signing a deal with Boeing for 30 Boeing 737-8 aircraft. The deliveries are scheduled through 2032. The strategic investment supports AviLease’s ambition to become a top 10 global lessor and aligns with Saudi Arabia’s Vision 2030 and the National Aviation Strategy. 

SAUDI INVESTMENTS IN THE US

During the summit, Trump announced a USD 600 billion commitment from Saudi Arabia to invest in the United States, marking a new era in bilateral economic cooperation. The initial wave of agreements spans key sectors such as technology, where Google, Oracle, AMD, and Salesforce, and others announced deals valued at more than USD 80 billion in joint investments.

On the infrastructure front, American engineering firms Hill International, Jacobs, Parsons, and AECOM have agreed to support Saudi megaprojects, representing USD 2 billion in US service exports.

Additional major exports include GE Vernova’s gas turbines and energy solutions, while Shamekh IV Solutions plans to invest USD 5.8 billion, including a manufacturing facility in Michigan. 

Investment partnerships include several sector-specific funds with a strong emphasis on US deployment – such as the USD 5 billion EnergyInvestment Fund, the USD 5 billion New Era Aerospace and Defence Technology Fund, and the USD 4 billion Enfield Sports Global Sports Fund – each channelling substantial capital into American industries, driving innovation, and creating high-quality jobs across the country. 

LONG STANDING TIES

The summit also commemorated 80 years since the historic meeting between King Abdulaziz and US president Franklin D. Roosevelt aboard the USS Quincy, underscoring a legacy of enduring cooperation. By 2023, Saudi FDI in the US reached USD 9.5 billion and is set to grow amid new announcements.

In 2024, direct US investment in Saudi Arabia reached USD 15.3 billion. American investors are bullish on the kingdom's recent significant economic transformations, which present promising opportunities for US companies across diverse sectors such as commercial space exploration, renewable energy, healthcare, infrastructure, advanced technologies, and AI. 

Saudi Arabia is also a key US regional trading partner. In 2024, the countries’ bilateral trade reached USD 32 billion, with Saudi Arabia exporting goods worth USD 13 billion to the US and importing USD 19 billion worth of goods from the States.