DUBAI: The business of America is business, a former US president once said. But for the next two days the business of America will be Saudi Arabia.
Prominent in the entourage of President Donald Trump on his historic visit to the Kingdom will be the cream of American business leaders, industrialists and financiers, gathering for a top-level forum with their counterparts from the Kingdom at the Four Seasons Hotel in Riyadh.
The Saudi-US CEO Forum, held today, is “designed to strengthen KSA-US business relationships by providing a platform to enhance bilateral trade and investment and break down barriers to enable closer economic ties,” according to the special website set up for the event.
At least 90 CEOs and top executives — split roughly evenly between those from Saudi Arabia and the US — are set to attend, according to organizers.
High-profile attendees from the Saudi side will include: Khalid Al-Falih, Saudi Arabia’s energy minister; Majid Al-Qassabi, minister of commerce and investment; Amin H. Nasser, president and CEO of Saudi Aramco; Lubna Olayan, CEO of Olayan Financing Co.; and Yousef Al-Benyan, CEO of Saudi Basic Industries Corporation (SABIC).
Mohammed Al-Jadaan, Saudi minister of finance, and Ali Al-Ghafis, minister of labor and social development, are also expected to attend.
Visitors from the US will include: Andrew Liveris, chairman and CEO of Dow Chemical; Michael Corbat, CEO of Citigroup; Jeff Immelt, chairman and CEO of GE; Chuck Robbins, CEO of Cisco; and Laurence Fink, chairman and CEO of BlackRock.
The first foreign visit by a new president is a big draw, but what the American business leaders are really interested in is what has been called the “Saudi sale of the century” — the program of privatizations and initial public offerings that has been valued at $300 billion, including its centerpiece, the potential $100 billion privatization of Saudi Aramco.
In that respect, one big question was still officially unanswered: would the New York Stock Exchange (NYSE) — considered a possible venue for part of the biggest initial public offering (IPO) in history — be represented at the business forum?
A request to NYSE for confirmation of its attendance in Riyadh went unanswered. When the British Prime Minister Theresa May recently visited the Kingdom, Xavier Rolet, the CEO of the London Stock Exchange, accompanied her.
But Reuters reported this month that a NYSE delegation will visit Saudi Arabia in late May to try to lure a listing by Aramco. And representatives of the Nasdaq will be attending today’s event in Riyadh, according to organizers.
US industrial groups also have Aramco in their sights for deals, with oil-services companies like Schlumberger, Halliburton and McDermott all tipped to be about to announce new contracts with the Saudi oil giant.
The other big item on the business agenda is the prospect of multibillion-dollar defense contracts as Trump’s America “resets” its relationship with Saudi Arabia and other Gulf nations in the face of Daesh terrorism and a perceived increased threat from Iran.
The value of any such deal — for fighter aircraft, command systems, ships, air missile defense and maritime security — has been estimated at as much as $300 billion over 10 years by some media outlets citing Washington sources, much higher than any previous US defense deal with Saudi Arabia.
Edward Burton, president and CEO of the US-Saudi Business Council, said: “I would never underestimate the purchasing power of Saudi Arabia in defense. They are prolific procurers of defense equipment and one of the top-five spenders in the world. It reflects what is going on in the neighborhood.”
Oil and energy is also likely to figure prominently on the agenda. There could be some tough talking on the price of oil and the ability of the US shale industry to keep increasing its global market share even at prices in the low region of $50 per barrel. Efforts by the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, to limit global oil output and increase prices have been complicated by US exports of shale oil and — to a lesser extent — gas.
Saudi Arabia does, however, remain the second-biggest source of oil imports to the US (after Canada), providing 1.124 million barrels per day out of a total import schedule of just over 8 million barrels, according to figures from the US Energy Information Administration.
Even without the big ticket-items of Aramco, defense and oil deals, there is a wealth of business opportunities on the table for American business leaders in Riyadh.
Burton said: “The Kingdom has made clear its commitment to a long-term strategy of restructuring the economy.
“I am sure (the Saudis) will be drawing attention to the opportunities in economic development projects, in public private partnerships, and in the big program of privatization and IPOs, with as many as 100 companies for sale or public listing.
“At the same time, US business is aware of the need for diversification and localization of the workforce. The companies attending will be committed to working with the Kingdom toward a system of locally sourced vendor-supplier agreements that places a high emphasis on outsourcing to Saudi Arabia small and medium enterprises,” Burton added.
The Wall Street financiers attending the forum will be looking for clarity and commitment to the economic diversification strategy of Vision 2030, with all the transactional opportunities that presents.
One New York banker attending the forum said: “Many of us have been encouraged to commit capital to Saudi Arabia and put resources on the ground there. It is a whole new mindset, for us and for them. This will be an opportunity to get to know their potential local partners and calibrate whether (the diversification strategy) is real and is happening.”
But the forum is by no means a one-way street. Just as important for the Saudi-US business relationship are the opportunities for investment by Saudi Arabia into the US. President Trump has vowed to put “America First” in terms of manufacturing and employment, and is keen to welcome Saudi investment.
At a recent meeting between the US president and Mohammed bin Salman, Saudi Arabia’s deputy crown prince, a package of investment in American infrastructure and other initiatives was discussed. Consultants have proposed investments in states in the US Midwest that have suffered heavily through job losses and industrial change, and which backed the president in last year’s election.
Burton said: “Saudis have already proved to be prolific investors into the US, in portfolio investment and in equity. Companies like SABIC and Aramco have made big commitments to the US, and Prince Alwaleed bin Talal is the biggest individual investor from Saudi Arabia, with hotel and equity investments like Twitter.
“Saudis are also big investors in US real estate in Florida, California and New York. They are no strangers to the financial attraction of America, even before President Trump.”
One of the big issues in recent US-Gulf relations — the strains in aviation policy between the two regions over the “open skies” dispute and the cabin laptop ban imposed by the Americans on travelers from some Middle Eastern states — is unlikely to assume a high profile at the forum.
The three Gulf airlines affected by the “open skies” row — Emirates, Etihad and Qatar Airways — are not participating. Saudi Arabian Airlines (Saudia) was not affected at all by the row over alleged anti-competitive practices by the Gulf airlines, and only to a lesser degree by the laptop ban.
Saudi Arabia takes center stage for US Inc.
Saudi Arabia takes center stage for US Inc.
Six vital sectors drawing US investors to Saudi Arabia
RIYADH: Six vital sectors are drawing US investors, including entrepreneurs and small businesses, to Saudi markets as the Kingdom continues to develop its regulatory framework and foster innovation, Deborah Lehr, interim CEO of the Meridian International Center, said in an interview with Al-Eqtisadiah.
Lehr, who is heading a trade and investment delegation to Saudi Arabia in her capacity as an economic advisor affiliated with the White House, stated that the six sectors include hospitality, luxury goods, and tourism, as well as culture, technology, and others.
She noted that Saudi Arabia has significantly eased the process for foreign companies to establish a presence, a critical factor for small and medium-sized enterprises that may not yet have the scale to expand, making the Kingdom an attractive market for both large and innovative small companies.
Following the success of the Saudi Crown Prince’s recent visit to Washington, she said, Meridian organized a US trade delegation to explore tangible and growing opportunities for US businesses in Saudi Arabia.
Translating Vision 2030 priorities into real partnerships
The delegation, which included representatives from Delta, Intel, Pernod Ricard, and Basilinna, among others, met a wide range of government officials, private-sector leaders, and entrepreneurs to explore how US companies can participate in Saudi market growth.
According to Lehr, discussions were practical and forward-looking, focusing on translating Vision 2030 priorities into real business partnerships.
She highlighted that most of the companies in the delegation were large enterprises operating across various sectors, underscoring the diversity of businesses active in Saudi Arabia.
She pointed out that these companies joined the mission because they see the potential to scale their operations in Saudi Arabia — whether by increasing flight routes, enhancing airport security, offering advisory services to firms entering the Saudi or US markets, or exploring opportunities in the beverage sector.
Relationship increasingly taking economic dimension
Lehr hinted to the Saudi minister of investment that the US-Saudi relationship is also increasingly taking on an economic dimension.
She noted that bilateral trade stands at around $40 billion, compared with Saudi-China trade of approximately $110 billion, highlighting untapped growth potential between the two countries, especially as diplomatic and political ties continue to strengthen.
She said the reforms present valuable opportunities for US companies across multiple sectors, including advanced manufacturing, technology and logistics, as well as aviation, tourism and culture, alongside a wide range of services.
With the regulatory environment being modernized and business stability increasing, the scope of US investment is set to expand further. More importantly, she added, the greater the engagement of companies, the stronger and more resilient the bilateral relationship will become in the years ahead.
She emphasized that Saudi Arabia has undergone deep social and economic transformations, including increased female participation in the workforce and entrepreneurship, while emerging as a cultural hub with a thriving arts scene and new platforms for creative expression.
Lehr further said that the world will witness growing global interest from companies and institutions eager to be part of Saudi Arabia’s remarkable transformation, amid increasing openness and a willingness to share its history, culture, and ambitions with the world.
Saudi agenda offers tangible opportunities
Lehr highlighted that during her visit, she focused on three key economic priorities. The first is Saudi Arabia’s strategic shift of capital from the oil and gas sector toward technology and innovation, a move that signifies not only economic diversification but also the Kingdom’s emergence as a globally competitive player.
Second, the Kingdom’s reform agenda has provided tangible opportunities for foreign companies, reflecting real changes that facilitate international participation in Saudi growth.
The third point she focused on was that the strong geopolitical and economic ties between the US and Saudi Arabia have bolstered investor confidence. As the Kingdom strengthens its global role and deepens relationships with partners such as the US, its attractiveness for long-term foreign direct investment continues to grow.
She noted that sectors such as artificial intelligence, gaming and entertainment, advanced manufacturing, and the technology ecosystem are areas in which the US has strong competitive advantages, at a time when US firms are seeking new markets that offer stability and long-term potential.
Giga-projects in Saudi Arabia, including AlUla and NEOM, have attracted global attention and highlighted emerging opportunities across the country.
These projects demonstrate the Kingdom’s ambitious vision and its creation of entirely new sectors rather than merely expanding existing ones.
