Saudi Arabia’s Crown Prince Mohammed bin Salman has announced the kingdom’s plan to invest $600 billion into new investments and trade with the United States over the next four years. This announcement came during a phone call with President Donald Trump, where bin Salman expressed optimism about the economic reforms expected from the Trump administration.
The Saudi State news agency reported that bin Salman highlighted the potential for “unprecedented economic prosperity” due to the anticipated reforms. While the agency did not specify the sources or deployment strategies for the $600 billion investment, it emphasized the kingdom’s eagerness to capitalize on favorable conditions. Bin Salman also mentioned that the investment could increase further if additional opportunities arise, indicating a flexible and ambitious approach to economic collaboration.
Strengthening Ties: Trump and Saudi Arabia
During his first term, President Trump established close ties with Saudi Arabia and other Gulf states. Notably, Saudi Arabia invested $2 billion in a firm created by Trump’s son-in-law and former aide, Jared Kushner, after Trump left office.
At his inauguration on Monday, Trump hinted at making Saudi Arabia his first destination for a foreign visit if Riyadh agreed to purchase $500 billion in American products. Reflecting on his 2017 visit to Saudi Arabia, Trump said, “I did it with Saudi Arabia last time because they agreed to bury $450 billion worth of our product. I said, ‘I’ll do it, but you have to buy American product,’ and they agreed to that.”
Following his re-election, Trump attended a UFC fight at Madison Square Garden, accompanied by notable figures such as Elon Musk, Kid Rock, RFK Jr., Tulsi Gabbard, House Speaker Mike Johnson, and Yasir Al-Rumayyan, the head of Saudi Arabia’s Public Investment Fund (PIF). The PIF, controlled by bin Salman and governed by Al-Rumayyan, is the sovereign wealth fund of Saudi Arabia. As of July, the PIF was estimated to have about $925 billion in assets, making it one of the largest sovereign wealth funds globally.
The $600 billion investment pledge marks a new chapter in US-Saudi relations, with both nations poised to benefit from strengthened economic ties. As the world watches, the collaboration between these two economic powerhouses could set the stage for unprecedented growth and prosperity.
