US Institutions Expand Footprint in Saudi Financial Sector, Nearing a Third of Total Foreign Holdings 

A man walks past the logo of Tadawul. (AFP)
A man walks past the logo of Tadawul. (AFP)
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US Institutions Expand Footprint in Saudi Financial Sector, Nearing a Third of Total Foreign Holdings 

A man walks past the logo of Tadawul. (AFP)
A man walks past the logo of Tadawul. (AFP)

Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, arrived in Washington on Tuesday for talks with President Donald Trump and a Saudi-US investment summit, reinforcing the strategic weight of the financial partnership between the two countries, which is an essential pillar of Saudi Vision 2030.

The Crown Prince’s trip is not merely a diplomatic engagement; it reflects the deepening economic cooperation aimed at transforming Saudi Arabia into a global financial center. Today, 17 major US financial institutions operate in the Saudi market, making the United States one of the Kingdom’s most influential strategic partners in the sector.

Saudi officials say this cooperation has helped lift the value of the Saudi financial market to over USD 3 trillion by 2024. US institutions now account for nearly 30 percent of foreign investment in the sector.

Saudi Arabia began gradually opening its financial markets to foreign investors in 2015, introducing the Qualified Foreign Investor (QFI) framework. Momentum accelerated in 2019, when Tadawul was added to the MSCI and FTSE Russell emerging-market indices, attracting tens of billions of dollars in passive inflows.

Reforms under Vision 2030 helped modernize market regulations, increase transparency, and encourage foreign institutional participation. Key initiatives include the launch of the Fintech Regulatory Sandbox in 2019 and the introduction of financial derivatives trading in 2020, both aimed at enhancing liquidity and reducing volatility while opening the door to advanced global market players.

As a result, US institutional participation expanded significantly, reaching about 30 percent of total foreign exposure to Saudi financial instruments.

Critical role

American institutions have played a critical role in developing the Saudi capital market through direct investment, knowledge transfer, support for liquidity, corporate-governance modernization, and infrastructure development. Their presence has strengthened market depth and increased the appeal of Saudi assets to global investors.

Cooperation with US banks has also bolstered Saudi Arabia’s exchange-traded funds (ETF) ecosystem and strengthened the Kingdom’s debt market, supported in part through partnerships with the Public Investment Fund (PIF). This has boosted foreign focus on Saudi bonds and contributed to deeper fixed-income markets.

US institutions were also instrumental in landmark market events, including the 2019 Aramco IPO, valued at USD 29.4 billion, the world’s largest public offering at the time. Related reforms and advisory support helped drive a 110 percent increase in foreign investment in 2018.

Saudi Arabia’s Capital Market Authority (CMA) has also benefited from US expertise in areas such as mergers and acquisitions, market-making regulations, and strategies to reduce volatility and strengthen market stability.

Liquidity, governance and financial inclusion

The growing partnership has elevated performance standards and transparency across the Saudi financial sector.

Enhanced liquidity and improved governance practices, ranging from risk-management frameworks to anti-financial-crime systems, have contributed to the rise of banking assets across Gulf Cooperation Council countries to USD 2.3 trillion.

Higher governance standards have also helped Saudi Arabia improve its financial inclusion index score to more than 60 points, according to the International Monetary Fund.

Leading US institutions operating in Saudi Arabia:

Several major US firms are now deeply embedded in the Saudi financial landscape, reflecting long-term commitments to the Kingdom’s economic transformation.

BlackRock

Global asset-management giant BlackRock has established one of the strongest presences in Riyadh among foreign financial institutions. It was the first major global investment manager to open a regional office in the Saudi capital and last year added Amin Nasser, CEO of Saudi Aramco, to its board of directors.

In 2024, BlackRock signed an MoU with the Public Investment Fund to establish a multibillion-dollar multi-asset investment platform in Riyadh, backed by an initial USD 5 billion commitment from PIF.

During the Future Investment Initiative (FII) last October, BlackRock and PIF announced a series of new joint investment funds through the BlackRock Riyadh Investment Management Platform, open to both domestic and international investors.

J.P. Morgan

J.P. Morgan, the largest US bank by assets, remains a key financial partner to Saudi Arabia. It holds two operating licenses in the Kingdom: a banking license from the Saudi Central Bank (SAMA) and a securities license from the Capital Market Authority.

The bank is active in advisory, asset management, and capital-markets activities, and continues to expand its role in both public- and private-sector financing.

Morgan Stanley

Morgan Stanley leverages its extensive expertise to enhance the global appeal of Saudi public offerings. The firm has participated in advising and managing several IPOs, including the upcoming listing of SITE, a PIF subsidiary.

In September, Tadawul Saudi Exchange approved the request submitted by Morgan Stanley Saudi Arabia to operate as a market maker on 52 listed stocks across both the Main Market and the Parallel Market (Nomu). The move enables the exchange to benefit from the firm’s technical capabilities, improve overall market efficiency, and narrow bid-ask spreads.



Google to Pay Musk $920 Million a Month for AI Computing Capacity

The headquarters of Space Exploration Technologies Corp. (SpaceX) in California. (AFP)
The headquarters of Space Exploration Technologies Corp. (SpaceX) in California. (AFP)
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Google to Pay Musk $920 Million a Month for AI Computing Capacity

The headquarters of Space Exploration Technologies Corp. (SpaceX) in California. (AFP)
The headquarters of Space Exploration Technologies Corp. (SpaceX) in California. (AFP)

SpaceX on Friday signed a blockbuster cloud computing agreement under which Google will pay the Elon Musk-founded rocket company $920 million per month for access to a massive cluster of AI chips, according to a disclosure in its initial public offering filing.

The deal, which will bolster SpaceX's finances ahead of its IPO on June 12, covers a computing infrastructure of approximately 110,000 Nvidia GPUs -- the crucial hardware needed to power Google's Gemini AI models.

The filing says Google will begin paying the full monthly rate in October 2026, with a reduced fee applying during a ramp-up period until then, AFP reported.

The agreement runs through June 2029, implying total payments of roughly $30 billion over the life of the contract.

The deal resembles one struck with AI giant Anthropic, in which SpaceX leased compute capacity at its Colossus data centers in Memphis, Tennessee for $1.25 billion a month.

The facilities were originally built to power Musk's rival AI venture, xAI.

SpaceX's IPO filing revealed that xAI last year posted an operating loss of $6.4 billion on total revenue of $3.2 billion.

"This is a short-term, timely agreement to ensure we have bridge capacity to meet surging customer demand for our agent platform, Gemini Enterprise, which has been even higher than we expected," a Google Cloud spokesperson said in an email to AFP.

The filing adds that after December 31, "the agreement may be terminated by either party upon 90 days' notice."

The deals with Google and Anthropic come just days ahead of SpaceX's IPO, which will be the biggest in history, valuing the company at $1.8 trillion.

That valuation is largely based on faith that Musk can deliver on his ambitions to vastly expand his Starlink satellite business, put data centers into space using SpaceX rockets, as well as begin colonizing Mars.


Rosneft: US Companies Benefit from Strait of Hormuz Closure

Igor Sechin, Chief Executive Officer of Rosneft, during the St. Petersburg International Economic Forum, June 5, 2026 (Reuters).
Igor Sechin, Chief Executive Officer of Rosneft, during the St. Petersburg International Economic Forum, June 5, 2026 (Reuters).
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Rosneft: US Companies Benefit from Strait of Hormuz Closure

Igor Sechin, Chief Executive Officer of Rosneft, during the St. Petersburg International Economic Forum, June 5, 2026 (Reuters).
Igor Sechin, Chief Executive Officer of Rosneft, during the St. Petersburg International Economic Forum, June 5, 2026 (Reuters).

Rosneft Chief Executive Igor Sechin said on Saturday that US energy companies were the main beneficiaries of the closure of the Strait of Hormuz but warned that continued tensions in the artery for one fifth of the world's crude would undermine long-term demand for oil.

Iran blockaded the Strait, the main route for about a fifth of world oil supplies and other vital goods including fertilisers, after the United States and Israel attacked Iran and killed Supreme Leader Ali Khamenei in February. The US has blockaded Iranian ports.

Sechin, a close ally of President Vladimir Putin and one of the most influential men in Russia's energy sector, cast the US actions as an attempt to change the fundamental contours of the global energy markets to suit US interests, but added that the strategic risks had not been fully assessed.

"The closure of the Strait of Hormuz is an attempt to reshape global energy market regulations to benefit the United States. The measures taken to block the strait were aimed at Iran, but backfired on the entire world. The strategic risks were underestimated," Sechin said at the St. Petersburg International Economic Forum.

"The main beneficiaries, of course, were American companies, which gained non-competitive advantages and the ability to secure high-cost supplies," he said.

"Continued tension in the Strait of Hormuz for a long time undermines the long-term demand for oil. It may also trigger another surge of interest in alternative energy."

If the Strait opens in the near future, then the oil price will be at $95 to $96 per barrel by the end of the year, and in a year it will drop to $80 to $85, and by the second half of 2027 there will be a return to market fundamentals, he said.


First Two of Riyadh Air’s Custom-Built 787-9 Dreamliners Arrive in Saudi Arabia

The arrival of Riyadh Air's two aircraft marks a historic milestone in the company's journey towards launching its flights (SPA)
The arrival of Riyadh Air's two aircraft marks a historic milestone in the company's journey towards launching its flights (SPA)
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First Two of Riyadh Air’s Custom-Built 787-9 Dreamliners Arrive in Saudi Arabia

The arrival of Riyadh Air's two aircraft marks a historic milestone in the company's journey towards launching its flights (SPA)
The arrival of Riyadh Air's two aircraft marks a historic milestone in the company's journey towards launching its flights (SPA)

Riyadh Air, Saudi Arabia’s new national carrier and a company wholly owned by the Public Investment Fund (PIF), has announced the arrival of its first two custom-built Boeing 787-9 Dreamliners at King Khalid International Airport in Riyadh.

The aircraft arrived in tandem on Friday at approximately 10 a.m. local time, receiving a water cannon salute upon touchdown.

The aircraft – using the call signs Riyadh 1 and Riyadh 2 and registered as HZ-RXAA and HZ-RXAB – are the first of Riyadh Air’s 72 state-of-the-art Dreamliners.

Their arrival marks the commencement of the carrier's broader strategy to expand its fleet to more than 180 narrow-body and wide-body aircraft.

Leveraging Saudi Arabia’s strategic location at the crossroads of Asia, Africa, and Europe, Riyadh Air aims to connect the capital to over 100 global destinations by 2030, with plans to fly to nearly 20 destinations by the end of this year.

Commenting on the arrival, Riyadh Air CEO Tony Douglas said: “To see our very first custom-built Dreamliners touch down in Riyadh is a truly historic moment for us, and a momentous day for Saudi aviation as part of Vision 2030. I could not be more excited or more confident about the future and the legacy we are creating.”

“Not only are we building an airline, we are opening a new gateway to the world from the heart of the Kingdom. We are absolutely ready and excited to welcome the world to Riyadh,” he added.