Would Biden’s Saudi visit clear the decks for a renewed relationship?
Since President Joe Biden assumed office, the United States’ relationship with Saudi Arabia has been in a downward spiral due to political and economic differences between the two countries.
However, despite these differences, it is believed that President Biden’s visit to the Kingdom this month will not only bring the relationship back to normal but will strengthen it and take it to a broader level, especially economically.
This assumption is based on many longstanding, successful, economic, political, health, educational, cultural and security factors.
Following recognition in 1932, the US and the Kingdom established a full diplomatic relationship and have witnessed a longstanding association.
The relationship has grown over the 80 years to encompass trade, culture, education, security and the close ties between the Saudi and American people.
It is worth noting that the US-Saudi trade relationship rebounded from the pandemic lows of 2020 and posted record high exchanges of non-oil and non-defense goods.
Total trade volume between the US and the Kingdom totaled $24.7 billion in 2021, showing an increase of 22 percent from the previous year of $20.2 billion.
Despite the solid economic and commercial ties between the two nations, there is room for further growth, considering that the Kingdom is pursuing an ambitious goal of Vision 2030.
Talat Zaki Hafiz
US exports to the Kingdom totaled $11.1 billion last year, up by 0.3 percent from 2020. Total Saudi exports to the US, on the other hand, reached $13.5 billion in 2021, registering a sharp increase from the previous year of $9 billion.
The US-Saudi total trade volume amounted to $166 billion between 2017 and 2021, while non-oil exports between the two countries amounted to $2.3 billion in 2021, registering an increase of 100 percent over the previous year.
It is worth noting that the US and the Kingdom enjoy a robust economic relationship. The US is the Kingdom’s second-largest trading partner, and the Kingdom is one of the US’ largest trading partners in the Middle East.
Also, the Kingdom is the third-largest exporter of crude oil for the United States, providing about half a million barrels per day of oil to the US market.
Despite the solid economic and commercial ties between the two nations, there is room for further growth, considering that the Kingdom is pursuing an ambitious goal of Vision 2030.
The US can significantly support the Kingdom in different fields, such as renewable and nuclear energy, power generation, health care, technology transfer, automotive, telecommunications and others.
Hopefully, President Biden’s visit to the Kingdom will enhance the trade and economic ties between the US and the Kingdom and support the private sector in the two countries.
Without a doubt, the rooted US-Saudi partnership and cooperation will help the two countries promote mutual opportunities that would lead to long-term development despite some differences in viewpoints that may surface from time to time.
• Talat Zaki Hafiz is an economist and financial analyst. twitter: @talatHafiz.
