عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Al-Falih: Saudi Investment Relationship with US Developing in Serving Both Countries

Saudi Minister of Investment Engineer Khalid Al-Falih. (SPA)
Saudi Minister of Investment Engineer Khalid Al-Falih. (SPA)
TT
TT

Al-Falih: Saudi Investment Relationship with US Developing in Serving Both Countries

Saudi Minister of Investment Engineer Khalid Al-Falih. (SPA)
Saudi Minister of Investment Engineer Khalid Al-Falih. (SPA)

Saudi Minister of Investment Engineer Khalid Al-Falih hailed the Jeddah Security and Development Summit that was held on Saturday.

“These meetings come at a particularly critical period and offer us the opportunity to boost the relations and strategic partnerships between our countries and the United States, for the good of our peoples, as well as the prosperity, stability, and security of the whole world,” he added, according to the Saudi Press Agency.

The summit brought together the leaders of the Gulf Cooperation Council (GCC) countries, US President Joe Biden, Egypt’s President Abdul Fattah al-Sisi, Jordan’s King Abdullah II and Iraqi Prime Minister Mustafa al-Kadhimi.

Al-Falik said: “The economic and investment relations between the Kingdom and US is nearly 90 years old, having started with the Kingdom signing, in 1933, an oil concession agreement with Standard Oil of California (SOCAL, and later Chevron).”

“Saudi-US relations gained momentum after the historic meeting between Founding King, Abdulaziz bin Abdurrahman Al Saud and then-US President Franklin Roosevelt, in 1945. That meeting laid the foundation for a long-term strategic partnership between the two countries that have remained firm and prosperous, despite global and regional challenges, over the past decades,” he noted.

“Moreover, Saudi-American relations have witnessed a major boost under the leadership of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman, Deputy Prime Minister and Minister of Defense,” he added.

Al-Falih noted that Saturday’s summit was held at a critical time, as the world is still grappling with the coronavirus pandemic. It is also enduring the Russian-Ukrainian conflict that has impacted the global economy, supply chains and food security and led to a slow-down in investments.

The Kingdom, meanwhile, continues to make stride as it forges ahead with its Vision 2030, which has passed the five-year mark. Saudi Araia is achieving great success and coming closer to its goals and objectives of building its future as a vibrant society, a prosperous economy, and an ambitious homeland.

Vision 2030 and the National Investment Strategy aim to open doors for Saudi and non-Saudi investors to promising emerging sectors in the Kingdom, with the objective of bolstering the role of the private sector in diversifying the resources of the Kingdom’s national economy, creating quality job opportunities, and developing local communities, said Al-Falih.

He highlighted the National Investment Strategy’s role in promoting investment opportunities in specific sectors, including tourism, entertainment, transportation, logistics, energy (including renewable energy), green technologies, and green financing, as well as sectors related to digital transformation, such as advanced industries, health, and financial services.

Today there are more than 740 American companies registered as foreign institutions operating in the Kingdom, employing over 67,000 people, the majority of whom are Saudi, continued the minister.

These companies are present throughout the Kingdom, mainly across sectors such as manufacturing, information and communications technologies, as well as professional, scientific, and technical sectors.

Saudi companies, led by Saudi Aramco, SABIC, and Ma'aden, have made significant investments in the United States that are worth tens of billions of dollars, predominantly in oil and gas industries, as well as chemicals, Al-Falih noted.

Additionally, the Public Investment Fund (PIF) holds various investments, including about USD 44 billion worth of shares listed in US markets, according to Q1 2022 numbers.

Lucid Motors, a leading electric vehicle producer, which recently signed an agreement to build a factory in the Kingdom, represents one of the PIF’s strategic investments in the United States.

Al-Falih stressed that the Kingdom seeks to build and expand this strategic partnership, including with private sector institutions in both countries.

Moreover, he said his Ministry of Investment led a large delegation of private and public sector leaders from the Kingdom on an official visit to the United States in June.

Most Viewed

 
 
Business

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
TT
TT

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
TT
TT

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
TT
TT

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.