US-Saudi Arabia business relationship moves beyond ‘guns for oil’

Saudi Arabia’s King Abdul Aziz meets with American President Franklin D. Roosevelt on Feb. 14, 1945. (SPA)
Updated 20 March 2018
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US-Saudi Arabia business relationship moves beyond ‘guns for oil’

DUBAI: Nothing fundamental has changed since the very first meeting between a king of Saudi Arabia, Abdul Aziz bin Saud, and an American president, Franklin D. Roosevelt, in the spring of 1945 on board the USS Quincy in the Suez Canal in Egypt.
Then, according to historians of the meeting, the key themes were: Security and oil. The two men found common interests in their desire to fix regional borders in the wake of World War II (though they differed significantly over the issue of Palestine) and both wanted to guarantee markets for crude oil.
But the business of America is business, and the political relationship that was struck that day cemented an already existing commercial relationship in the oil fields. Since then, US-Saudi business relations have gone from strength to strength, even in such difficult times as the oil “spikes” of the 1970s and the aftermath of the 9/11 attacks on the US.
Daniel Yergin, the Pulitzer-winning author of the “The Prize,” told Arab News: “This is a partnership that goes way back. It is striking that the crown prince will be coming to the United States on the 80th anniversary of the discovery of oil in Saudi Arabia by American geologists.”
The relationship has broadened significantly from the simple “guns for oil” formula of the past. Now, US companies play a major role in the overall economic development of the Kingdom, from infrastructure and industry, through finance and investment, to health and entertainment.
Even in the early days, US companies saw the opportunities that came with the opening up of the Kingdom, with big corporations such as engineering group Bechtel following the oil companies’ lead to build roads and other essential infrastructure.
Ellen Wald, American Saudi expert and author, describes in her forthcoming book “Saudi, Inc.” how Bechtel moved from laying oil pipelines to building royal palaces, highways, schools, power plans, hospitals and hotels. “It saw the Saudi public works campaign as a sure source of profit,” she wrote.
Many US businessmen have spoken about the big transformation going on in the Kingdom under the Vision 2030 strategy in much the same way — as a gigantic and potentially very profitable program of public works.
An overview of mutual business reveals the scale and the depth of US-Saudi business links, and also underlines the fact that it is a two-way street.
Figures from the Washington DC-based US-Saudi Arabian Business Council (USSABC) showed total bilateral trade at $35.2 billion, with the Kingdom holding a slight balance advantage from its $18.9 billion of exports. Saudi Arabia is in the top 20 US trade partners, while America is the second biggest partner for merchandise into the Kingdom.
Saudi Arabia is the second biggest source of imported oil into the US and the third biggest source of international students in the US educational system.
Saudi Arabia — private sector and government — is estimated to have more than $1 trillion invested in the US, including a big holding of US Treasury bills.
There are some eye-watering investments within those overall figures. Saudi Aramco’s Motiva Enterprises is the largest oil refinery in the US, based in the oil state of Texas, which will also be home to a $3.9 billion petrochemicals plant joint-venture led by Exxon Mobil and Saudi Basic Industries Corporation (SABIC).
The pace of investment has increased in recent years. The Saudi sovereign investor Public Investment Fund (PIF) has put $3.5 billion into high-tech mobility company Uber, while PIF has teamed up with Blackstone in a $40 billion program of infrastructure investment.
The flow is far from one-way. Chemicals giant Dow is the largest foreign investor in the Kingdom, thanks to its $20 billion joint venture with Aramco in the Sadara petrochemicals plant. GE, the engineering conglomerate, has pledged billions of investment in power and energy in Saudi Arabia as part of its long-running business partnership. Exxon Mobil continues to be a major investor in Saudi energy.
And, of course, there is the defense industry. Saudi Arabia is America’s biggest customer for military sales, with all the big US defense manufacturers working as suppliers at all levels of the security business.
At the Riyadh summit last year, President Trump was able to announce $110 billion of defense deals with Saudi Arabia, including deals with Lockheed Martin, Boeing and Raytheon. Analysts expect those transactions to be taken to the next level during the royal visit to the US.
The USSABC estimates that the total amount of foreign direct investment (FDI) from the US to Saudi Arabia amounts to $9.83 billion — the highest of any foreign country into the Kingdom — while $12.3 billion went in the opposite direction, supporting 10,600 American jobs in affiliates of Saudi-owned firms.
There was much speculation after last year’s anti-corruption drive in the Kingdom that foreign firms might hold back on FDI, but so far there have been no reports of US firms canceling any FDI projects. The USSABC declined to comment on the effects of the anti-corruption campaign.


Greening the rooftops: Can green roofs take root in Saudi Arabia’s cities?

Updated 21 February 2026
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Greening the rooftops: Can green roofs take root in Saudi Arabia’s cities?

  • As giga-projects reshape the Kingdom, experts push for cooler, biodiverse cities

RIYADH: On Feb. 11, Riyadh marked a pivotal moment in Saudi Arabia’s sustainability journey with the official launch of the Saudi Green Building Alliance.

Announced during the Developers and Green Building Leaders Forum, the initiative signals a shift toward embedding environmental performance at the core of Saudi Arabia’s rapidly expanding built environment.

“SGBA is Saudi Arabia’s national green building council — an independent, nonprofit platform that brings together government, developers, investors, designers, contractors, and solution providers to accelerate sustainable, low-carbon, climate-resilient buildings and cities across the Kingdom,” said Mohammed Al-Surf, founder and CEO of SGBA.

“Our role is to align the market, support standards and best practice, build capacity, and help translate Vision 2030 and the Saudi Green Initiative into practical action in the built environment.”

The Saudi Green Building Forum participated in an international event in January 2026.  (Photo courtesy of Asharq Al-Awsat)

Saudi Arabia is in the midst of one of the largest urban development cycles globally. New districts are taking shape, giga-projects are redefining skylines, and cities such as Riyadh and Jeddah are expanding at unprecedented speed. According to Al-Surf, the defining question is whether this growth will lock in decades of inefficiency and emissions — or set a global benchmark for resilient, climate-smart cities aligned with Vision 2030 and the Saudi Green Initiative.

Across leading global cities, green rooftops are no longer seen as decorative luxuries but as functional infrastructure. In Saudi Arabia, they intersect directly with national priorities around livability, emissions reduction, and quality of life.

“Green rooftops are not just aesthetics — they are urban infrastructure. In a Vision 2030 context, they can support: Heat reduction and comfort in cities, Energy efficiency and peak load reduction, Healthier, more livable neighborhoods, Nature-based solutions that improve biodiversity and stormwater performance. They’re a practical way to bring climate resilience and quality of life into everyday buildings.” Al-Surf said.

DID YOU KNOW?

• Energy savings and asset value gains can offset upfront installation costs over time.

• Underused building tops represent one of the largest untapped spaces in urban Saudi Arabia.

• In arid climates, climate-fit design makes greening viable with non-potable water reuse.

“In Saudi cities, where roofs are a major source of heat gain, vegetated systems can significantly reduce surface temperatures, lower indoor cooling demand, and extend the lifespan of roofing membranes by protecting them from thermal stress.”

In Riyadh, where summer temperatures frequently exceed 45°C, urban heat is more than discomfort — it is a public health issue. Green rooftops can help mitigate the urban heat-island effect by cooling surrounding microclimates and reducing heat stress, particularly in dense neighborhoods. Their impact extends beyond temperature regulation, contributing to environmental resilience and community wellbeing.

Can green roofs work in the desert?

Skepticism persists about whether rooftop greening can truly succeed in arid, high-heat environments. The challenges are undeniable: Water scarcity, extreme summer temperatures, dust accumulation, intense ultraviolet exposure, and long-term maintenance demands all complicate rooftop planting in desert climates.

Yet technological and design advances are reshaping what is possible. Drought-tolerant native species, engineered lightweight soil substrates, drip irrigation systems, and smart water reuse technologies are making rooftop greening increasingly viable. Climate-responsive design remains essential.

Across global cities, green rooftops are increasingly viewed not as decorative extras but as functional components of urban infrastructure. In Saudi Arabia, they align with national priorities around livability, emissions reduction, and improved quality of life. (Photo courtesy of Unsplash)

Addressing misconceptions is equally important. Al-Surf said: “Three common misconceptions that green roofs are only for Europe. Not true — they just need Saudi-appropriate design. They require lots of water. (But ) not with xeriscape principles, smart irrigation, and non-potable reuse. They’re just decoration. (In reality) They’re thermal, social, and resilience infrastructure.”

One of the most persistent myths is that green roofs waste water. In practice, modern systems prioritize efficiency through xeriscaping principles, soil moisture sensors, weather-based irrigation controls, and the use of treated or non-potable water.

Olivia Jurado, an eco-holistic wellness practitioner who helped establish a regenerative rooftop garden in Dubai, points to regional examples as proof of concept.

“Many people believe it is not possible to grow green spaces in the desert,” she said. “But with the right planting methods and knowledge of what thrives locally, urban rooftop gardens can grow and flourish — and they don’t require excessive tending once mature.”

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She underscores the broader ecological and social dividends, from supporting pollinators such as bees and butterflies to creating small biodiversity corridors within cities and offering experiential learning spaces for schools and workplaces.

“Green rooftops provide so many benefits for the community and the environment. Including measurably reducing temperature, providing green spaces for wellbeing and connection to nature. They also help build community by providing a green space for connection, while tending to the space provides further learning opportunities. Rooftop and urban gardens also contribute to supporting and inviting pollinators, such as bees and butterflies, which are so important to our ecosystems.” Jurado said.

Many people believe that it is not possible to grow green spaces in the desert but it has been proven regionally that with the right planting methods and knowing the types of plants that thrive in the region (especially with regenerative gardening practices) urban rooftop gardens can and do indeed grow and thrive and they do not require much tending to once they are mature.

Cairo-based organization Schaduf helps city dwellers grow leafy greens in hydroponic rooftop gardens. (Photo courtesy of Schaduf)

“Every building and community should be encouraged and incentivized to grown their own gardens, it would not only beautify the urban spaces and help cool them, it would also provide a space of wellbeing for their respective communities.”

“It would be amazing to see urban rooftop gardens peeking from the tops of a majority of buildings by 2030.”

For developers, cost often becomes the deciding factor. Green roofs require upfront investment and are frequently cut during value engineering. However, when positioned as long-term performance infrastructure rather than aesthetic add-ons, the financial case becomes more compelling. Reduced cooling loads translate into energy savings; protected roofing membranes extend asset lifespan; premium amenities enhance property value; and stronger ESG credentials improve market positioning.

“The business case is strongest when you frame green roofs as: Energy and thermal risk management, Asset value and tenant premium, Lifecycle savings, Certification and market access,” Al-Surf explained. While upfront costs are real, returns improve when systems are climate-fit, scaled appropriately, and designed as functional amenities rather than symbolic gestures.

Looking ahead, the Saudi Green Building Alliance plans to develop national guidelines tailored to arid climates, establish demonstration rooftops across regions, and cultivate local expertise.

As Saudi Arabia’s skylines continue to rise, rooftops remain vast and largely untapped surfaces. By 2030, they could evolve into gardens, habitats, and cooling systems integrated into everyday urban life — proof that even in the desert, cities can grow greener from the top down.