RIYADH: New Jersey Gov. Phil Murphy has arrived in Saudi Arabia on the first stop of a three-country Gulf tour to strengthen economic ties and expand investment opportunities.
New Jersey, the most densely populated and diverse state in the US, is a leader in the “innovation economy,” according to the governor.
Technology and artificial intelligence, life sciences and pharmaceuticals, film and television, financial technology, and the green economy are top priorities for the delegation’s discussions in the Kingdom.
Murphy said: “We think that with Saudi Vision 2030 we match up very well. So, that is among the other reasons why we’re very excited to be here, to share best practices.”
Murphy’s trip, which is sponsored by the New Jersey Economic Development Authority, comes two weeks before President Donald Trump’s official state visit to the Kingdom.
The governor said: “The Kingdom is one of the most important relationships the US has anywhere in the world.
“I know President Trump well enough to know that he would not be coming here unless he thought he could meaningfully build on what is already a good foundation.”
He noted the enormous opportunity to help advance Vision 2030, benefiting not only Saudi Arabia but also the rest of the world.
New Jersey Gov. Phil Murphy speaks to the press during his visit to Saudi Arabia, the first stop of a three-country Gulf state tour. (Supplied)
As part of his economic mission, Murphy aims to foster educational growth, witnessed by the signing of a letter of intent between King Saud University and Rutgers University to establish an academic collaboration in public policy research, facilitated by Choose New Jersey.
The letter outlines a collaborative framework between the two institutions in public policy, business administration, management, urban planning, city development, and other fields.
It prioritizes research that supports continued development within the state, attracts businesses, and boosts investment in urban areas.
The partnership aims to introduce students to new academic and cultural perspectives to foster innovative solutions for challenges in both regions, said Antonio Calcado, executive vice president and chief operating officer of Rutgers University.
“King Saud University strategically partners with institutions that share our commitment to innovative research in diverse industries on a global scale,” said Prof. Yazeed Al-Sheikh, vice president for graduate studies and scientific research at King Saud University.
The governor also highlighted a major investment opportunity in the Greater New York-New Jersey area to deploy capital, renewable energy, and alternative energy sources.
When asked how New Jersey and Saudi Arabia can benefit each other in areas of AI and digitalization, the governor recounted a delegation he and first lady Tammy Murphy led in northern California three years ago.
A group of the smartest and most influential leaders in AI gathered to exchange ideas, and from those discussions came the question of creating an AI hub in New Jersey.
Murphy said: “If you look three years ago, the overwhelming AI presence was in the greater San Francisco Bay Area … that’s now begun to shift a little bit.”
With the No. 1 public education system in the US, the highest concentration of scientists and engineers per square mile, and respected institutions of higher education such as Princeton University and Rutgers University, the governor wanted to shift the conversation.
He added: “The two words that drive us are talent and location.”
The NJEDA — whose CEO Tim Sullivan is also on this visit — along with Princeton University, Microsoft, and CoreWeave, a New Jersey company, have come together in a joint venture with the state of New Jersey to drive AI innovation forward.
Murphy said: “I know Saudi Arabia is as invested in generative AI as any country in the world … my guess is this could easily be a memorandum of understanding, maybe a cross-investment, maybe an investment into our fund, maybe something on our side into an investment here, talent exchange, let’s say all of that is on the table.”
As New Jersey now requires all state employees to train in generative AI to improve government efficiency, a lot can be learned from the Saudi approach, Murphy said.
Considering the current economic climate with Trump’s tariffs, which range from 10 percent to 40 percent based on country and industry (10 percent on Saudi Arabian imports), “there is too much volatility in the system right now,” the governor said.
“I am not a big tariff guy,” he said. “Unless they are deliberately punitive on somebody who’s a bad actor.”
He added: “OK, I get it. Let’s continue to pursue smart ways to manufacture more in the US. Let’s make our government as lean and efficient and as impactful as possible. I am good with both, but let’s do it in each case in a strategic way, in a smart way.
“I think it is headed that way. I pray that it gets there soon.”
The governor wants the volatility in the markets to decrease. The objectives are there, but the methods need to change. He believes that the Kingdom and the region as a whole will be strong allies in an increasingly challenging world.
He also mentioned a bill he is sponsoring, and hoping to get signed in the next month, that will put a significant manufacturing incentive in place to encourage the production of goods in New Jersey.
Murphy also hopes that global conflict and geopolitical tensions will be addressed in the same statesmanlike, tactical way, citing Trump’s brief talks with President Zelensky in Rome on Saturday.
The governor was scheduled to meet the US-Saudi Business Council on Sunday to introduce the delegation to several prominent private sector players, opening the door for further conversations.
Other areas of cooperation with potential for expansion are sports, film, and television.
New Jersey will host eight matches for the FIFA World Cup 2026, one of which will be the final. It is an experience it can use to advise Saudi Arabia ahead of its hosting of the competition in 2034.
Murphy said: “We have a very good relationship with FIFA, which has been important. But thanks to FIFA we’ve had a very good relationship with Qatar, and lessons learned from their World Cup that we can benefit from.
“And I am sure the same will be true as we learn to pass (information) on to the Saudi delegation.”
The state of New Jersey will also be hosting the first World Club Cup this summer, a tournament Saudi club Al-Hilal is expected to take part in.
Murphy added: “We are (also) making New Jersey a global player in film and television, and that means we are not just making content in New Jersey, but we are also building sound stages and campuses.”
Since the cinema ban was lifted in Saudi Arabia in 2018, the Kingdom has made significant strides in developing its film industry, with efforts such as the Red Sea Film Festival and the growth of local productions and stars, aiming to make it a $1 billion industry by 2030.
Following his visit to the Kingdom, Murphy is set to visit Bahrain and the UAE for similar talks on economic and cultural cooperation.
