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Saudi Arabia and US strengthen economic ties with $600 billion investment initiative

Saudi Arabia’s Crown Prince Mohammed bin Salman announced plans to invest $600 billion in the United States
 

Saudi Arabia to invest $600 billion in the US over four years 

Saudi Arabia’s Crown Prince Mohammed bin Salman announced plans to invest $600 billion in the United States over the next four years. The statement came during a phone call with former President Donald Trump, marking Trump’s first conversation with a foreign leader since his inauguration earlier this week.

The Saudi Press Agency reported the crown prince’s remarks, emphasizing the kingdom’s intent to expand its trade and investments with the U.S. "The crown prince affirmed the kingdom's intention to broaden its investments and trade with the United States over the next four years, in the amount of $600 billion, and potentially beyond that," the agency noted.

Details on how the funds will be allocated remain unclear. However, the U.S. has moved away from relying on Saudi oil in recent years, signaling a shift in the foundation of the historically strong relationship between the two nations. Saudi Arabia’s sovereign wealth fund has instead turned its focus to stakes in U.S. businesses and investments in sports.

 

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The White House released a statement following the call, highlighting discussions on stability in the Middle East, regional security, and counterterrorism efforts. Additionally, the leaders talked about Saudi Arabia’s economic ambitions and mutual trade opportunities aimed at bolstering prosperity for both countries.

The kingdom’s dependence on U.S.-manufactured weapons and defense systems could be a key element of the proposed investment. Trump’s 2017 visit to Saudi Arabia, his first official foreign trip as president, solidified the close relationship between his administration and the Gulf nation, which agreed at the time to purchase $450 billion worth of U.S. goods, including military equipment.

During the call, Trump hinted at the possibility of visiting Saudi Arabia again, stating, “If Saudi Arabia wanted to buy another $450 billion or $500 billion — we’ll up it for inflation — I think I’d probably go.”

The proposed $600 billion investment comes as Saudi Arabia grapples with its own economic challenges. Prolonged lower oil prices since the COVID-19 pandemic have impacted the kingdom’s revenue, while Crown Prince Mohammed bin Salman pursues ambitious projects, such as the $500 billion futuristic city NEOM and preparations for hosting the 2034 FIFA World Cup.

 

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Cooperation between Saudi Arabia and the United States remains significant, with ongoing talks under the Biden administration about Saudi Arabia’s potential diplomatic recognition of Israel in exchange for U.S. defense commitments.

This enormous pledge reflects Saudi Arabia’s push to diversify its economy and strengthen international partnerships, even as it navigates domestic and global economic pressures.

Source: https://krcgtv.com/

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