Trump’s Saudi Arabia visit heralds a new era of economic diplomacy

The Saudi-US Business Council met last month with young and mid-level Saudi entrepreneurs to explain its mission and methods for fostering Saudi-US commercial partnerships. (Supplied)
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Updated 12 May 2025
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Trump’s Saudi Arabia visit heralds a new era of economic diplomacy

  • Both nations eye investments potentially exceeding $1 trillion as US president returns to expand a landmark economic alliance
  • Visit underscores focus on trade, trust and transformation as cooperation in defense, energy and emerging tech gains momentum

RIYADH: As President Donald Trump embarks on the first and, arguably, the most significant overseas tour of his second term, both the US and Saudi Arabia are eyeing investments worth billions of dollars.

In a call in January immediately after Trump was sworn in, Crown Prince Mohammed bin Salman told the president that the Kingdom planned to increase the value of its trade and investments with the US by $600 billion over the coming four years. This suggested that the value of mutually beneficial deals between the two countries might potentially reach $1 trillion, indicating that the bilateral relationship was entering a bold new phase.

Driving this next chapter in the relationship are personal diplomacy, strategic commercial interests, and a shared vision for geopolitical alignment.

Trump’s first foreign visit as US president during his first term was to Riyadh in May 2017. This marked the beginning of a transformative economic partnership between the US and Saudi Arabia and a new era of cooperation centered on defense, energy and infrastructure agreements worth hundreds of billions of dollars.

Now, as the American president returns to the Kingdom, his first stop on a tour this week that will also take him to Qatar and the UAE, the foundations laid in 2017 are set to be built upon.




Trump’s first foreign visit as US president during his first term to Riyadh in May 2017 marked the beginning of a transformative economic partnership between the US and Saudi Arabia. (AFP)

Trump’s first term (2017–2021) was characterized by a national-interest-driven foreign policy. Saudi Arabia quickly emerged as a cornerstone ally in both economic and strategic terms, a dynamic cemented at the historic Riyadh Summit in May 2017, at which King Salman extended an exceptionally warm welcome to the president.

The summit produced a wave of landmark agreements, most notably a $110 billion arms deal — part of a broader $350 billion economic package encompassing defense, energy and infrastructure initiatives.

In addition to state-level commitments, major commercial accords were struck. Saudi Aramco signed agreements valued at approximately $50 billion with prominent US firms including General Electric, Schlumberger and Halliburton.

Then Saudi Energy Minister Khalid Al-Falih highlighted the private sector’s growing role, remarking: “Many of us sitting at the table are overseeing substantial investments in the United States.”

Further solidifying the economic partnership, the Kingdom’s Public Investment Fund pledged $20 billion to a US infrastructure initiative spearheaded by Blackstone.

This commitment helped to anchor a $40 billion fund dedicated to revitalizing American roads, bridges and airports. Simultaneously, Saudi Arabia announced a $45 billion investment in the SoftBank Vision Fund, directing capital toward cutting-edge US technology ventures.

President Trump, addressing the summit’s assembled dignitaries, emphasized the significance of the occasion.

“This historic and unprecedented gathering of leaders — unique in the history of nations — is a symbol to the world of our shared resolve and our mutual respect,” he said. “The United States is eager to form closer bonds of friendship, security, culture and commerce.”

Then Secretary of State Rex Tillerson said the investments were expected to create hundreds of thousands of jobs in both countries over the coming decade.

“They will lead to a transfer of technology from the US to Saudi Arabia, enhance our economy, and also enhance American investments in Saudi Arabia, which already are the largest investments of anyone,” he said.

Throughout his presidency, Trump consistently highlighted Saudi investments as a win for American industry. In 2018, he hosted Crown Prince Mohammed bin Salman at the White House, where he publicly displayed detailed charts of Saudi arms purchases and emphasized the job-creation benefits across multiple US states.

“We’ve become very good friends over a fairly short period of time,” Trump remarked.




Throughout his presidency, Trump consistently highlighted Saudi investments as a win for American industry. (SPA)

Reflecting on that period, Albara’a Al-Wazir, director of economic research at the US-Saudi Business Council, described the 2017 visit as an “inflection point” in bilateral economic relations.

“It wasn’t just the volume of deals — it was the alignment of strategic priorities between both governments and the private sector that defined the success of that moment,” he told Arab News in an interview.

“It marked a shift from transactional diplomacy toward long-term commercial integration.”

Trump’s 2024 re-election has reignited bilateral economic momentum and, according to Al-Wazir, this next wave of engagement reflects the Kingdom’s evolving priorities.

“Recent deals have spanned traditional sectors like defense and energy, but we are also seeing growth in advanced manufacturing, artificial intelligence, biotech and financial services,” he said, highlighting a broader, more diversified agenda than in Trump’s first term.

At the World Economic Forum in Davos in January, Trump hinted at even greater ambitions. He suggested he would ask the Saudi crown prince to raise the investment target to $1 trillion, describing it as a natural extension of a robust and trusted partnership.

Saudi Economy Minister Faisal Alibrahim confirmed at the forum that the $600 billion pledge encompassed both government-led procurement and private-sector investment in key areas such as defense, energy, infrastructure and technology.




A picture taken in the Saudi Red Sea coastal city of Jeddah on July 14, 2022, ahead of a visit by the US president to the kingdom, shows a Saudi host addressing guests during a presentation on the Saudi Green Initiative. (AFP)

The Saudi Ministry of Investment now ranks the US among its top five sources of foreign direct investment, particularly in sectors aligned with Vision 2030, such as infrastructure, technology and renewables.

As of January 2025, Saudi Arabia held $126.9 billion in US Treasury securities, making it the only Gulf Cooperation Council country among the top 20 foreign holders of American debt. This substantial stake underlines Riyadh’s continued confidence in US fiscal stability and reflects a longstanding strategy to diversify reserves via reliable, dollar-denominated assets.

The current holdings include $105.3 billion in long-term bonds and $21.6 billion in short-term instruments, reflecting a balanced approach between liquidity and capital preservation.

As the Saudi-US Investment Forum convenes on Tuesday at the King Abdulaziz International Conference Center in Riyadh, economic cooperation between the two nations will once again be in the global spotlight.

Timed to coincide with Trump’s visit, the forum aims to highlight nearly a century of bilateral partnership. It will bring together prominent investors, business leaders and policymakers from both nations to strengthen commercial ties and explore new avenues for collaboration.

According to figures released ahead of the event, the US remains the largest foreign investor in Saudi Arabia, with FDI stock totaling $54 billion as of 2023 — accounting for approximately 23 percent of all FDI in the Kingdom.

Currently, 1,266 American firms hold active licenses to operate in Saudi Arabia, including 440 new licenses issued in the past year alone. These companies are engaged in such critical sectors as transportation, manufacturing, retail, information and communications technology and professional services. Collectively, they employ more than 80,000 workers in the Kingdom, including over 44,000 Saudi nationals.




The Riyadh Chamber of Commerce organized in February bilateral meetings with a US trade delegation. (Supplied)

Saudi investment in the US is also on the rise, with FDI stock now exceeding $75 billion. Leading the way are key institutions such as the PIF, Aramco and SABIC, while US financial firms continue to play a pivotal role in channeling global capital into major Saudi initiatives.

Bilateral trade between the two countries remained strong in 2024. Saudi exports to the US reached $12.8 billion, including nearly $3 billion in non-oil goods — a testament to the Kingdom’s ongoing economic diversification efforts.

Meanwhile, US exports to Saudi Arabia totaled $19.7 billion, led by machinery and appliances at $5.1 billion, vehicles at $2.6 billion, and medical and optical equipment at $1.5 billion.

On the Saudi side, key exports to the US included mineral products ($10 billion), fertilizers ($830 million) and organic chemicals ($526 million).

This year’s forum is expected to highlight the expanding investment and trade relationship as a cornerstone of modern economic diplomacy between the two strategic allies.




Bilateral trade between the two countries remained strong in 2024. Saudi exports to the US reached $12.8 billion, including nearly $3 billion in non-oil goods — a testament to the Kingdom’s ongoing economic diversification efforts. (Supplied)

Trump’s visit to Riyadh is widely expected to focus also on new defense contracts and deepening economic cooperation.

Energy policy has also returned to the fore, with Trump urging Saudi Arabia to ramp up oil production in a bid to stabilize global markets and reduce pressure on fuel prices — linking economic alignment to broader geopolitical aims, including efforts to curtail Russian revenue.

Al-Wazir believes the visit may also accelerate progress in emerging technologies and industrial development: “US companies are particularly well positioned to support Saudi Arabia’s diversification goals under Vision 2030, especially in energy transition technologies, automation and data analytics,” he said.

There are signs that Gulf investors are already responding positively to the renewed partnership. Following the 2024 US election, Yasir Al-Rumayyan, governor of PIF, was photographed alongside President Trump and Elon Musk, who is now serving as a senior adviser to the White House. Bloomberg interpreted the image as a signal of renewed Gulf confidence in the Trump administration.

As Trump returns to Saudi Arabia, the US-Saudi economic alliance appears not only intact, but also on the cusp of expansion — driven by mutual interests, deepening personal ties and a shared belief that commerce remains a pillar of diplomacy in a rapidly shifting global order.

 


Saudi Arabia, Kuwait sign MoU to boost anti-money laundering efforts

Updated 22 June 2025
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Saudi Arabia, Kuwait sign MoU to boost anti-money laundering efforts

RIYADH: Saudi Arabia and Kuwait have signed a memorandum of understanding to bolster cooperation in the fight against money laundering and the financing of terrorism, reinforcing regional efforts to strengthen financial security.

The agreement, inked between Saudi Arabia’s General Department of Financial Investigations and Kuwait’s Financial Intelligence Unit, was finalized on the sidelines of the second meeting of the Gulf Cooperation Council Committee of Financial Intelligence Units, held in Kuwait, the Kuwait News Agency reported.

The MoU aims to enhance intelligence sharing and operational coordination between the two nations. It is expected to significantly improve the effectiveness of the region’s financial crime prevention frameworks, aligning with international standards and bolstering joint mechanisms among GCC financial intelligence units.

The signing follows a virtual workshop hosted in March by the National Center for Non-Profit Sector Development, which focused on preventing money laundering and terrorist financing within non-profit organizations, including charitable groups and foundations.

The agreement also reflects broader economic ties between the two Gulf neighbors. In February, Kuwait’s exports to Saudi Arabia reached SR137 million ($36.5 million), up 19.6 percent from the previous year, according to data from the Observatory of Economic Complexity.

Officials from both countries highlighted the MoU’s role in advancing national capabilities, fostering regional integration, and aligning with best practices in financial intelligence and compliance.

The renewed cooperation comes as Saudi Arabia continues to encourage Kuwaiti investment in its mining and industrial sectors.

In April, Minister of Industry and Mineral Resources Bandar Alkhorayef met with a delegation of Kuwaiti businessmen during an official visit to Kuwait, emphasizing untapped opportunities in the Kingdom’s mining industry.

Alkhorayef underscored the sector’s importance to Saudi Vision 2030, which aims to position the Kingdom as a global industrial and mining hub. He cited estimates valuing Saudi mineral resources at over SR9.3 trillion.

Combatting money laundering remains a national priority for Saudi Arabia, which has implemented a comprehensive legal and regulatory framework to protect the integrity of its financial system and prevent illicit funding activities, including terrorism financing.


Closing Bell: Saudi main index edges down 0.34% to close at 10,574

Updated 22 June 2025
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Closing Bell: Saudi main index edges down 0.34% to close at 10,574

RIYADH: Saudi Arabia’s Tadawul All Share Index edged lower on Sunday, falling 36.44 points, or 0.34 percent, to close at 10,574.27.

Total trading turnover reached SR3.72 billion ($991 million), with 134 stocks posting gains and 102 declining.

The Kingdom’s parallel market, Nomu, also recorded a slight dip, losing 27.14 points, or 0.10 percent, to settle at 26,148.69, as 34 stocks advanced and 39 retreated. Meanwhile, the MSCI Tadawul 30 Index dropped 5.34 points, or 0.39 percent, to finish at 1,361.80.

Alistithmar AREIC Diversified REIT Fund was the best-performing stock of the session, with its share price rising 10 percent to SR8.25. Al Sagr Cooperative Insurance Co. followed with a 9.96 percent increase to SR12.36, while Knowledge Economic City climbed 5.36 percent to close at SR12.98.

On the losing side, Retal Urban Development Co. saw the steepest decline, falling 5.10 percent to SR13.02. Flynas Co. dropped 4.13 percent to SR74.20, and Saudi Chemical Co. declined 3.85 percent to SR6.24.

Shares of Hawiya Identity Auctions began trading on Nomu at SR13 per share. According to a Tadawul statement, the offering comprised 2.4 million shares, with Derayah Financial Co. acting as lead manager.

Gas Arabian Services Co. announced the signing of a joint venture agreement with Italy’s BONOMI Co. to establish a valve manufacturing company in the Kingdom.

The new company will have a capital of SR5 million, with BONOMI holding a 60 percent stake and Gas Arabian Services owning 40 percent.

The Saudi firm will fund its SR2 million share from internal resources. The deal is expected to have a long-term positive financial impact, though it remains subject to regulatory approvals and the fulfillment of conditions outlined in the agreement. Gas Arabian Services shares closed at SR15, up 0.40 percent.

Mayar Holding Co. revealed that its subsidiary, NewPlast Co., has signed a two-year memorandum of understanding with Avant Sports to produce plastic chairs for sports stadiums.

The chairs will be manufactured at NewPlast’s Riyadh facility and will meet international and FIFA standards. The agreement supports Mayar’s commitment to localizing specialized industries in line with Vision 2030 goals.

The price range for the offering of the Sports Clubs Co. ranged between SR7 and SR7.5 per share, according to a statement by Saudi Fransi Capital, the financial advisor and bookrunner for the institutional subscription.

The offering includes 34.32 million ordinary shares, representing 30 percent of the company’s capital.


Saudi culture sector to triple GDP share to $48bn by 2030, says minister

Updated 22 June 2025
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Saudi culture sector to triple GDP share to $48bn by 2030, says minister

JEDDAH: Saudi Arabia plans to raise the cultural sector’s contribution to gross domestic product to 3 percent — or SR180 billion ($48 billion) — by 2030, up from under 1 percent, according to Minister of Culture Prince Badr bin Abdullah bin Farhan.

In an interview with Al-Eqtisadiah, the minister said the sector has already surpassed its previous 0.91 percent GDP share, with Vision 2030 targets being met ahead of schedule.

“Vision 2030 forms the foundation of the Ministry of Culture’s strategy and direction,” he said. 

“By 2030, we envision a cultural environment that nurtures talent, encourages innovation both locally and internationally, and supports the flourishing of creative and cultural enterprises.” Prince Badr said in the interview. 

“Ultimately, our goal is to increase the sector’s contribution to GDP to 3 percent, equivalent to SR180 billion,” he said. “This represents the core mission of the Ministry of Culture and its affiliated bodies in driving an ambitious cultural transformation.”

Since the ministry’s founding in 2018, employment in the sector has jumped 318 percent, while the number of cultural graduates reached 28,800 in 2024, up 79 percent from 2018. The ministry has also issued over 9,000 licenses, while cultural associations and amateur clubs surged from 28 to 993.

“One notable outcome is the increase in the percentage of citizens who believe culture is important—from under 70 percent to 92 percent,” Prince Badr said. The ministry also oversees national celebrations such as Founding Day and Flag Day and has documented 9,317 antiquities sites and 25,000 urban heritage locations.

Saudi Arabia has now met its Vision 2030 target of having eight UNESCO World Heritage sites, with Al-Faw joining the list in 2024. Cultural event attendance exceeded 23.5 million between 2021 and 2024, and major festivals such as the Red Sea Film Festival and Islamic Arts Biennale have become global draws.

The Cultural Scholarship Program has awarded scholarships to 1,222 students studying at over 120 institutions across countries, including the US, the UK, and France. The program’s flexible design — no age limit or required academic background — has broadened participation. “Today, scholarship recipients are pursuing degrees in fields such as music, theater, and visual arts,” the minister said.

Through the Cultural Development Fund, the ministry has disbursed SR377 million to more than 120 projects. “Key areas of growth include heritage, music, and fashion. More than 1,200 creatives and entrepreneurs have benefited from its development services,” he added.

“Globally, there is increasing recognition of culture’s role in sustainable economic value creation,” the minister said. “Our role is to preserve and promote cultural identity while making it accessible and economically valuable.”


Saudi Arabia surpasses 116m tourists in 2024, exceeds goal for 2nd year 

Updated 22 June 2025
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Saudi Arabia surpasses 116m tourists in 2024, exceeds goal for 2nd year 

RIYADH: Saudi Arabia welcomed 116 million tourists in 2024, exceeding its annual visitor target for the second year in a row, the official data showed. 

According to the Ministry of Tourism’s latest annual statistical report, the figure includes 29.7 million inbound tourists, an 8 percent increase year on year, and 86.2 million domestic trips, up 5 percent from 2023. 

The milestone reflects the continued acceleration of the Kingdom’s Vision 2030 strategy, which positions tourism as a central driver of economic diversification.  

After surpassing its original 100 million visitor goal six years ahead of schedule in 2023, Saudi Arabia has revised its ambitions upward, now aiming to attract 150 million tourists annually by 2030. This figure is split between 70 million international and 80 million domestic visitors. 

In a post on X, Minister of Tourism Ahmed Al-Khateeb said: “The 2024 Annual Statistical Report showcases the sector’s remarkable growth and its role in enabling Saudi Vision2030, a record performance achieved with the support and guidance of the Kingdom’s visionary leadership.”

Total tourism spending in 2024 hit SR283.8 billion ($75.6 billion), with inbound tourists contributing SR168.5 billion, up 19 percent from 2023, while domestic tourist expenditure reached SR115.3 billion, a 1 percent rise.  

“The tourism sector continued to achieve record growth, reaffirming its transformation into a key driver of economic development and a fundamental pillar in advancing and diversifying the national economy,” the minister said.   

Inbound tourism also reached a record monthly peak in March with 3.2 million visitors. The average international tourist stayed 19 nights and spent SR5,669 per trip.  

A standout development in 2024 was the continued rise in non-religious tourism, now representing 59 percent of inbound visits compared to 44 percent in 2019.  

Leisure and holiday travel topped this category, with related spending reaching SR36.4 billion.   

Makkah remained the top destination, drawing 17.4 million overnight visitors, and Egypt was the leading source market with 3.2 million arrivals.   

Regional analysis revealed that Asia and the Pacific accounted for the largest share of inbound tourists, at 33 percent, followed by the Middle East and North Africa at 28 percent, and the Gulf Cooperation Council at 27 percent.  

Europe contributed 8 percent, while both the Americas and Africa each made up 2 percent of total visitors.  

The sustained growth reflects the Kingdom’s continued focus on developing its tourism infrastructure and global outreach.   

The ministry noted that this report highlights the exceptional and accelerated growth achieved by the sector through targeted marketing campaigns and support programs, contributing to the sector’s record-breaking performance.  
 


Air France eyes daily Paris-Riyadh flights amid soaring demand

Updated 22 June 2025
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Air France eyes daily Paris-Riyadh flights amid soaring demand

  • New route reflects airline’s ambition to reestablish presence in Saudi market
  • It comes in response to growing demand to access Kingdom’s expanding economic opportunities

RIYADH: Air France is planning to operate daily flights between Paris and Riyadh, a senior airline official told Arab News in an exclusive interview.

The announcement follows the launch of the carrier’s first direct route between Paris-Charles de Gaulle and King Khalid International Airport.

Stefan Gumuseli, the airline’s general manager for India and the Middle East, outlined the importance of the new route for the Air France-KLM Group and said it reflects the airline’s ambition to reestablish its presence in the Saudi market.

The decision comes in response to growing demand from travelers and investors eager to access the Kingdom’s expanding economic opportunities.

The new route marks a strategic step for Air France as it expands operations in the region and aligns with the growing connectivity between Europe and Saudi Arabia.

As part of its sustainability strategy, Air France is adopting a comprehensive approach across its operations. Supplied

Talking to Arab News, Gumuseli said: “We’re starting with three weekly flights in mid-June, then gradually increasing to five. Our first major goal is to move to a daily service.”

He added that the market is not only outward-looking; the airline is also responding to rising inbound demand for Saudi Arabia, noting that it is experiencing almost exponential year-on-year growth.

Gumuseli also pointed to the Kingdom’s Vision 2030, which reflects a strong commitment to developing tourism, hospitality, and culture, supported by substantial ongoing investments. He said: “All these megaprojects are a clear sign that tourism is booming. We have a strong relationship with Saudi Arabia and are expanding our cooperation.”

His comments were echoed by Air France’s Senior Vice President for Benelux, Asia, India, the Middle East, and East Africa Bas Gerressen, who told Arab News: “Tourism is a very important factor, but we also need traffic, which has grown significantly over the past two years.

“The more connectivity there is between the two countries, the more economic exchange will flourish in both directions,” Gerressen added. 

Air France-KLM has entered into codeshare agreements to strengthen its network connectivity.

“We also place our code on these flights. So, when you consider all that connectivity from both sides, demand can only grow,” Gerressen said.

He added: “I believe Saudi Arabia has many premium travelers, and we need to reach them in specific markets. We already have strong demand across our business, premium and economy classes.”

At the same time, the airline is leveraging its distinctive French identity.

The new route marks a strategic step for Air France as it expands operations in the region. Supplied

‘We position ourselves as a truly French brand — luxury, elegance, sophistication ... The French Touch. You can feel it the moment you board,” said Gerressen.

High-end products, gourmet in-flight dining, La Premiere lounges, and exclusive cabin experiences all reinforce this premium positioning. “We offer one of the best cabins in the region with our new first class, featuring a seat with five windows and just four seats in the entire cabin. It’s a revolution in the industry,” Gerressen added.

He emphasized the cabin crew’s vital role in shaping the passenger experience, highlighting their attentiveness and approachable demeanor.

As part of its sustainability strategy, Air France is adopting a comprehensive approach across its operations.

“Each new generation of aircraft reduces CO₂ emissions by up to 25 percent. Today, 28 percent of our fleet consists of these new aircraft, and our goal is to increase this figure to 80 percent by 2030,” Gerressen said. 

The airline is also the world’s leading buyer of sustainable aviation fuel. 

Gumuseli said: “We account for nearly 16 percent of global SAF usage, despite representing only 3 percent of total global kerosene consumption.”

Air France is investing in technology to enhance the passenger experience.

“We’ve decided to install high-speed Wi-Fi on board. In the event of a delay, passengers will receive updates about their connecting flights directly on their screens. With data and technology, we can truly personalize the service,” Gumuseli said.

“Our target customers include expatriates living in Saudi Arabia and tourists wishing to travel to Europe, North America, South America or Africa. Businesses are also a key audience, given the strong commercial ties between France and Saudi Arabia. We aim to serve all these segments,” said Gumuseli.

“Religious tourism should not be overlooked. Pilgrims can now combine Umrah with a more tourist-oriented experience,” he added.

Gerressen stressed the importance of the eVisa: “It is crucial. Simplifying the visa process will be essential in convincing more people to visit Saudi Arabia.”