Saudi Arabia’s Crown Prince Mohammed bin Salman announced on Thursday, 23rd January, that the kingdom plans to invest $600 billion (€576 billion) in the United States over the next four years, following a phone conversation with US President Donald Trump.
The Crown Prince’s comments come after Trump expressed interest in returning to Saudi Arabia as his first foreign visit upon re-entering office.
According to the state-run Saudi Press Agency: “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 (€576 bn), and potentially beyond that.”
The agency did not provide specifics on how the funds would be allocated. During their conversation, the two leaders also reportedly discussed potential cooperation between their countries to promote peace, security, and stability in the Middle East.
There was no immediate response from the White House regarding the call, nor was it clear whether this was Trump’s first call with a foreign leader since returning to the Oval Office. However, it was the first reported call with a leader abroad.
After his inauguration, Trump had mentioned the possibility of Saudi Arabia being his first foreign visit, similar to his 2017 trip.
“The first foreign trip typically has been with the UK but… I did it with Saudi Arabia last time because they agreed to buy $450 billion (€429 bn) worth of our products,” Trump told journalists in the Oval Office. I think I’d probably go (again),” he added.
In recent years, the US has reduced its reliance on Saudi oil exports, which once formed the foundation of the bilateral relationship.
Trump has maintained close ties with Saudi Arabia, despite the controversy surrounding Crown Prince Mohammed bin Salman, who was implicated in the 2018 murder of Washington Post columnist Jamal Khashoggi in Istanbul.
The proposed $600 billion pledge, which exceeds the gross domestic product of many nations, comes as Saudi Arabia faces its own budgetary challenges. Global oil prices remain low in the aftermath of the coronavirus pandemic, affecting the kingdom’s revenues.
Meanwhile, the Crown Prince has continued to invest in NEOM, a new city in the Saudi desert, and the country must also invest tens of billions of dollars in new infrastructure, including stadiums, ahead of hosting the 2034 FIFA World Cup.
