U.S. President Donald Trump secured a $600 billion commitment from Saudi Arabia on Tuesday to invest in the United States after the oil power rolled out the red carpet for him at the start of a tour of Gulf states.
Trump punched the air as he emerged from Air Force One to be greeted by Prince Mohammed bin Salman, who later signed an agreement with the president in Riyadh on energy, defence, mining, and other areas.
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Saudi Arabia’s investment commitment includes what the U.S. described as the largest defence sales agreement between the allies, worth nearly $142 billion.
A NEW ERA OF COOPERATION
While energy remains a cornerstone of our relationship, the investments and business opportunities in the kingdom have expanded and multiplied many, many times over,” Saudi Investment Minister Khalid al-Falih told a U.S.-Saudi investment forum.
“As a result … when Saudis and Americans join forces, very good things happen, more often than not great things happen when those joint ventures happen,” he said before Trump’s arrival.
Trump called the Saudi crown prince a friend and said they have a good relationship, according to a pool report from the Wall Street Journal, adding that Saudi investment would help create jobs in the U.S.
Business leaders at the investment forum included Larry Fink, the CEO of asset management firm BlackRock, Stephen A. Schwartzman, CEO of asset manager Blackstone, and Treasury Secretary Scott Bessent.
Musk chatted briefly with both Trump and the crown prince, who is otherwise known as MbS, during a palace reception for the U.S. president. And joining Trump for a lunch with MbS were top U.S. businessmen, including Musk, the Tesla and SpaceX chief, and OpenAI CEO Sam Altman.
MbS has focused on diversifying the kingdom’s economy in a major reform programme dubbed Vision 2030 that includes “Giga-projects” such as NEOM, a futuristic city the size of Belgium. Oil generated 62% of Saudi government revenue last year.
The kingdom has scaled back some of its ambitions as rising costs and falling oil prices weigh.
Saudi Arabia and the U.S. have maintained strong ties for decades based on an ironclad arrangement in which the kingdom delivers oil and the superpower provides security in exchange.
MbS’s ties with Trump have been smoother than with his predecessor, Joe Biden. Their relations were strained by the 2018 killing of Saudi commentator Jamal Khashoggi by Saudi agents in the Saudi consulate in Istanbul. U.S. intelligence believed the killing was ordered by MbS. He denied involvement.
