US-Saudi investment forum driving a new era of cooperation

This week’s visit by Saudi Crown Prince Mohammed bin Salman to the US is poised to deepen the long-standing economic and political partnership between these two friendly countries.

While the Saudi-US relationship has faced fluctuations in recent years, it continues to be a deeply entrenched partnership spanning more than eight decades.

Under the current Trump administration, the relationship has moved in a positive direction and is now in strong shape.

Additional evidence of the strength of the bilateral relationship was offered by Donald Trump’s decision to make Saudi Arabia the destination of his first foreign trip as president in 2017 — and to visit again early in his second term. These trips underscore the Kingdom’s enduring political and economic significance.

With Saudi Arabia becoming the region’s fastest-growing economy and progressing swiftly under Vision 2030, the crown prince is expected to further reinforce the Kingdom’s bilateral trade and economic ties with the US. This momentum also reaffirms the enduring partnership between Saudi Arabia and the US — a relationship rooted in decades of strategic cooperation.

The bilateral trade and investment relationship between the two nations dates back to 1933, when Saudi Arabia signed a concession agreement with the Standard Oil Company of California. This granted exploration rights that ultimately led to the historic discovery of oil at Dammam Well No. 7 in 1938. Since then, the economic partnership has continued to expand.

According to the Office of the United States Trade Representative, total US goods trade with Saudi Arabia reached an estimated $25.9 billion in 2024. US goods exports to the Kingdom amounted to $13.2 billion — down 4.8 percent ($670.1 million) from 2023 — while imports totaled $12.7 billion, reflecting a 19.9 percent decline from the previous year. Nevertheless, the US trade surplus with Saudi Arabia increased significantly, rising to $443.3 million in 2024, a 121.6 percent jump compared to 2023.

The crown prince’s announcement earlier this year of a $600 billion investment in the US marked a transformative step toward deepening bilateral economic ties.

Given President Trump’s earlier tariff policies — even on long-standing allies — Saudi Arabia’s neutral stance in global trade tensions helped reinforce the stability of its economic relationship with the US. This is consistent with the long-standing pattern of Saudi-US trade, in which most of the Kingdom’s exports to America have been oil and petroleum products that are largely exempt from US tariffs.

The crown prince is expected to further reinforce the Kingdom’s bilateral trade and economic ties with the US.

Talat Zaki Hafiz

As a result, the Kingdom has continued to be viewed as a predictable and reliable trade partner, even during periods of broader international trade friction. According to the International Monetary Fund Executive Board’s 2025 Article IV Consultation with Saudi Arabia, the direct impact of rising global trade tensions on the Kingdom remains limited, as oil products — currently about 78 percent of Saudi Arabia’s goods exports to the US — are exempt from Washington’s tariffs, while non-oil exports to the US account for only 3.4 percent of Saudi Arabia’s total non-oil exports.

The US State Department’s approval of a $3.5 billion sale of medium-range air-to-air missiles to Saudi Arabia will reinforce military cooperation and contribute to regional security while expanding defense trade.

Saudi Arabia continues to be a key global supplier of crude oil, fertilizers and organic chemicals, while the US exports a wide array of goods, including electrical and mechanical equipment, pharmaceuticals, agricultural products and industrial machinery.

The automotive sector remains the top US export to Saudi Arabia, reaching $2.8 billion in 2023 — a 32 percent year-on-year increase. Machinery, nuclear reactors and related components accounted for $2.5 billion (18 percent of all US exports), a 38 percent rise from 2022. Aircraft and aircraft parts followed at $1.7 billion.

The US-Saudi Investment Forum 2025, scheduled for Washington this week, will bring together visionaries, leaders and changemakers shaping the future of global investment. More than an event, the forum serves as a bridge between two nations that continue to redefine the meaning of partnership. This year’s edition will celebrate a decade of shared growth, innovation and mutual trust between Saudi Arabia and the US. From energy to artificial intelligence and from healthcare to finance, the forum will highlight how collaboration between the two countries creates opportunity, drives innovation and advances global progress.

Looking forward, Saudi Arabia’s Vision 2030 will play a critical role in expanding trade and investment between the two nations. This plan places emphasis on diversifying the Saudi economy, with a specific focus on renewable energy, digital innovation and high-tech industries.

The shared Saudi-US vision was highlighted by a joint announcement on Sept. 8, 2023, when the two governments signed a memorandum of understanding to collaborate on the creation of intercontinental green corridors, leveraging Saudi Arabia’s unique geographic position as a bridge between Asia and Europe.

In summary, the Saudi-US economic relationship continues to evolve, anchored in a legacy of shared strategic interests and mutual economic benefit. As Saudi Arabia advances toward its Vision 2030 goals — centered on sustainability, diversification and innovation — it is actively shaping a future of expanded cooperation with the US.

The depth and resilience of the Saudi-US bilateral trade relationship continue to shape the strategic, economic and political landscape of both nations. From the historic foundations of their energy partnership to the expanding frontiers of trade, technology and investment, the two countries remain deeply interconnected.

Saudi Arabia’s rapid transformation under Vision 2030, coupled with America’s commitment to fostering stable and mutually beneficial economic ties, underscores a partnership that is both enduring and forward-looking.

As global challenges evolve, platforms such as the US-Saudi Investment Forum reaffirm a shared belief that collaboration — grounded in trust, innovation and long-term vision — is essential to driving prosperity and progress for both nations and the wider world.

For Washington, Saudi Arabia remains a vital partner, particularly through its supply of essential resources such as crude oil, steel and aluminum, which contribute to US energy security and support key industries including manufacturing, aerospace, automotive and defense. These exports strengthen American productivity and reinforce supply chain resilience.

At the same time, US companies continue to benefit from access to a rapidly expanding Saudi market fueled by ambitious megaprojects and major investments in infrastructure, technology, renewable energy and manufacturing.

Moreover, Saudi Arabia’s strategic location as a logistics hub connecting Asia, Europe and Africa enhances global trade flows and creates new opportunities for US exports and foreign investment.

Through sustained cooperation, strategic investment and shared innovation, the US-Saudi partnership is well positioned to navigate an evolving global economic landscape and deliver long-term, mutually beneficial outcomes for both nations.

The Saudi-US economic relationship continues to evolve, anchored in a legacy of shared strategic interests and mutual economic benefit.

• Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz