Saudi Arabia plans to invest $600 billion in the US: details

23 January 14:17

Saudi Crown Prince Mohammed bin Salman has said that the kingdom intends to invest $600 billion in the United States over the next four years. This was reported by the Saudi state news agency after a telephone conversation with former President Donald Trump, Komersant ukrainskyi reports citing Reuters.

“The crown prince reaffirmed the kingdom’s intention to expand investment and trade with the United States over the next four years to the tune of $600 billion, and potentially even more,”

– the Saudi news agency reported.

Details of cooperation

The nature of possible investments remains unspecified. It is important to note that in recent years, the United States has become less reliant on Saudi oil exports, which used to be the cornerstone of their relationship. Instead, Saudi sovereign wealth funds have already acquired significant stakes in American companies and are showing interest in the sports industry.

Much of the investment is likely to go into the defense sector, as Saudi Arabia predominantly uses American weapons and defense systems.

There has been no official reaction from the White House to this phone call. It has not been clarified whether this was Trump’s first call to a foreign leader after returning to the White House.

In addition to the phone conversation with Trump, the crown prince also spoke with U.S. Secretary of State Marco Rubio.

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Trump and Saudi Arabia

After his inauguration, Trump hinted at the possibility of a second visit to the kingdom. In 2017, Trump made his first foreign visit to Saudi Arabia, breaking a long tradition of American presidents who usually began their international trips in the United Kingdom. The visit underscored the Trump administration’s close ties to the ruling circles of the Gulf oil states.

“The first foreign visit has traditionally been to the United Kingdom, but… I did it with Saudi Arabia last time because they agreed to buy $450 billion worth of goods. If Saudi Arabia wants to buy another 450 or 500 billion – we’ll increase it for inflation – I’ll probably go,”

– trump said.

So, it is likely that the first foreign visit of the 47th President of the United States this time will be to Saudi Arabia.

It is worth remembering that in 2018, the media reported that Prince Mohammed was involved in the murder of Washington Post journalist Jamal Khashoggi in Istanbul. However, Trump maintained close relations with Saudi Arabia even after this incident.

Global context

The announcement of the $600 billion investment comes amid serious financial challenges. Global oil prices remain low, which negatively affects Saudi Arabia’s revenues.

At the same time, Prince Mohammed continues to promote the ambitious $500 billion NEOM project, a futuristic city in the western desert on the Red Sea coast.

In addition, the kingdom is preparing to host the 2034 FIFA World Cup, which will require the construction of tens of billions of dollars worth of infrastructure and stadiums.

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Остафійчук Ярослав
Editor