Saudi -American economic relations, how did you develop?
Saudi -American economic relations
The economic relations between the Kingdom of Saudi Arabia and the United States of America witnessed a remarkable development during the past decades.
Where the areas of cooperation between the two countries varied to include vital sectors such as trade, energy, education, technology, industry, infrastructure, banking services, health care, and others.
This expansion reflects the growing strategic partnership that focuses on mutual interests between the two sides, and opens promising horizons for further cooperation in the future.
A partnership whose roots date back to the thirties of the twentieth century
The beginning of economic relations between Saudi Arabia and the United States dates back to the early 1930s.
Specifically with the start of American investments in the Saudi oil sector,
Where this stage constituted a turning point in the Saudi economy and established the pillars of long -term cooperation between the two countries.
Over time, this relationship has evolved to include wider and more diverse areas,
What made it today one of the most prominent economic partnerships in the region The Middle East.
Wide diversity in the areas of cooperation
The current economic relations between the Kingdom and the United States include a wide range of vital sectors,
Among the most prominent of which are trade and banking services, construction, education, science and technology sectors,
In addition to the petrochemical industries, health care and transportation.
A report issued by the Saudi -American Business Council indicated that this diversity reflects the depth of economic partnership, and highlights the interaction of the public and private sectors on both sides towards achieving joint economic and investment interests.
Agreements and initiatives to enhance the partnership Saudi -American economic relations
The most prominent support for this relationship is the official agreements and joint initiatives that enhance the level of cooperation.
Among the most prominent of these agreements is the Trade and Investment Framework Agreement concluded between the two countries and extends for ten years,
It aims to strengthen trade relations and facilitate the flow of investments between the two sides.
It was signed in 2022 between King Abdulaziz City for Science and Technology and the American Embassy of America in Riyadh, within the framework of scientific and technical cooperation.
Saudi Arabia as an important market for American exports
The Kingdom is one of the most prominent markets for American exports, in 2024 ranked 28th in the list of the largest American export market,
The second is at the level of the Gulf Cooperation Council countries after the UAE.
This arrangement reflects the large trade exchange between the two countries, which includes many goods and services, from heavy industries to advanced technology.
Saudi investments in US Treasury bonds
In terms of financial investments, the Kingdom of Saudi Arabia has about $ 140 billion in US Treasury bonds (until March 2025),
What makes it seventeenth among the largest US securities.
These investments are part of the Kingdom’s policy in diversifying its investment portfolios at the global level,
Especially through the Public Investment Fund, which plays a pivotal role in this field.
Saudi Arabia as a major source for international students
In the education sector, the Kingdom continues to enhance its academic presence in American universities,
It ranks tenth among the largest exporting countries of international students to the United States during the academic year 2022-2023.
This number reflects the interest of Saudi youth in American higher education, which is characterized by its high academic quality and opportunities for research and development.
Huge investments between the private and public sectors to enhance Saudi -American economic relations
The accumulated investments of the Saudi private sector and the Public Investment Fund in the United States of America amounted to about 40.2 billion dollars since 2007, highlighting the great expansion of investment relations between the two countries.
These investments include a variety of strategic companies and assets distributed among the sectors of industry, technology, infrastructure, and financial services.
Among the most prominent of these investments is the company “Motiva Enterprises”, which is affiliated with Saudi Aramco, which is the largest refinery in the United States.
The American company “Dow” is one of the largest foreign companies invested in the Kingdom,
Through a joint project with Aramco worth $ 20 billion, making it an essential pillar in the Saudi industrial sector.
Giant projects in the petrochemical sector
A joint alliance between the American “Exxon Mobil” and “SABIC” Saudi Arabia is currently working on developing a huge petrochemical complex in the US state of Texas, at a cost of up to 9.3 billion dollars.
This joint project reflects the desire of the two parties to expand the scope of industrial cooperation and exploit economic opportunities in energy markets.
Public Investment Fund and expand investment influence
The Public Investment Fund currently owns approximately $ 26.8 billion in American stocks,
This includes investments in prominent companies such as “Lucid” specializing in electric cars, “Uber” in the smart transport sector, “Activision Blizzard” and “EA” in the electronic game industry.
The fund also entered into a strategic partnership with the “Blackstone” company to launch a $ 40 billion infrastructure fund,
What shows the Kingdom’s orientation towards the development of its external investments in the vital sectors.
Promising industrial opportunities in the two countries to expand Saudi -American economic relations
The Saudi -American Business Council report highlights promising industrial opportunities inside the Kingdom,
Energy, infrastructure, transportation, petrochemical, energy generation, banking services, health care, tourism, entertainment, and financial technology, as well as commercial privileges.
On the other hand, the report also highlights the American sectors that can be attractive to Saudi investments.
Like transportation, real estate, plastic industry, and auto industry, which represent strategic opportunities in light of the Saudi trend towards economic diversification within the Kingdom’s 2030 vision.
The economic relations between the Kingdom of Saudi Arabia and the United States of America are a model for the growing strategic partnership,
It combines mutual investments, economic interests, and scientific and technical cooperation, which establishes a new stage of relations based on mutual respect and joint development.
As this momentum continues, cooperation between the two countries is expected to witness more growth and expansion in the near future.
