DUBAI: Nothing fundamental has changed since the very first meeting between a king of Saudi Arabia, Abdul Aziz bin Saud, and an American president, Franklin D. Roosevelt, in the spring of 1945 on board the USS Quincy in the Suez Canal in Egypt.
Then, according to historians of the meeting, the key themes were: Security and oil. The two men found common interests in their desire to fix regional borders in the wake of World War II (though they differed significantly over the issue of Palestine) and both wanted to guarantee markets for crude oil.
But the business of America is business, and the political relationship that was struck that day cemented an already existing commercial relationship in the oil fields. Since then, US-Saudi business relations have gone from strength to strength, even in such difficult times as the oil “spikes” of the 1970s and the aftermath of the 9/11 attacks on the US.
Daniel Yergin, the Pulitzer-winning author of the “The Prize,” told Arab News: “This is a partnership that goes way back. It is striking that the crown prince will be coming to the United States on the 80th anniversary of the discovery of oil in Saudi Arabia by American geologists.”
The relationship has broadened significantly from the simple “guns for oil” formula of the past. Now, US companies play a major role in the overall economic development of the Kingdom, from infrastructure and industry, through finance and investment, to health and entertainment.
Even in the early days, US companies saw the opportunities that came with the opening up of the Kingdom, with big corporations such as engineering group Bechtel following the oil companies’ lead to build roads and other essential infrastructure.
Ellen Wald, American Saudi expert and author, describes in her forthcoming book “Saudi, Inc.” how Bechtel moved from laying oil pipelines to building royal palaces, highways, schools, power plans, hospitals and hotels. “It saw the Saudi public works campaign as a sure source of profit,” she wrote.
Many US businessmen have spoken about the big transformation going on in the Kingdom under the Vision 2030 strategy in much the same way — as a gigantic and potentially very profitable program of public works.
An overview of mutual business reveals the scale and the depth of US-Saudi business links, and also underlines the fact that it is a two-way street.
Figures from the Washington DC-based US-Saudi Arabian Business Council (USSABC) showed total bilateral trade at $35.2 billion, with the Kingdom holding a slight balance advantage from its $18.9 billion of exports. Saudi Arabia is in the top 20 US trade partners, while America is the second biggest partner for merchandise into the Kingdom.
Saudi Arabia is the second biggest source of imported oil into the US and the third biggest source of international students in the US educational system.
Saudi Arabia — private sector and government — is estimated to have more than $1 trillion invested in the US, including a big holding of US Treasury bills.
There are some eye-watering investments within those overall figures. Saudi Aramco’s Motiva Enterprises is the largest oil refinery in the US, based in the oil state of Texas, which will also be home to a $3.9 billion petrochemicals plant joint-venture led by Exxon Mobil and Saudi Basic Industries Corporation (SABIC).
The pace of investment has increased in recent years. The Saudi sovereign investor Public Investment Fund (PIF) has put $3.5 billion into high-tech mobility company Uber, while PIF has teamed up with Blackstone in a $40 billion program of infrastructure investment.
The flow is far from one-way. Chemicals giant Dow is the largest foreign investor in the Kingdom, thanks to its $20 billion joint venture with Aramco in the Sadara petrochemicals plant. GE, the engineering conglomerate, has pledged billions of investment in power and energy in Saudi Arabia as part of its long-running business partnership. Exxon Mobil continues to be a major investor in Saudi energy.
And, of course, there is the defense industry. Saudi Arabia is America’s biggest customer for military sales, with all the big US defense manufacturers working as suppliers at all levels of the security business.
At the Riyadh summit last year, President Trump was able to announce $110 billion of defense deals with Saudi Arabia, including deals with Lockheed Martin, Boeing and Raytheon. Analysts expect those transactions to be taken to the next level during the royal visit to the US.
The USSABC estimates that the total amount of foreign direct investment (FDI) from the US to Saudi Arabia amounts to $9.83 billion — the highest of any foreign country into the Kingdom — while $12.3 billion went in the opposite direction, supporting 10,600 American jobs in affiliates of Saudi-owned firms.
There was much speculation after last year’s anti-corruption drive in the Kingdom that foreign firms might hold back on FDI, but so far there have been no reports of US firms canceling any FDI projects. The USSABC declined to comment on the effects of the anti-corruption campaign.
US-Saudi Arabia business relationship moves beyond ‘guns for oil’
US-Saudi Arabia business relationship moves beyond ‘guns for oil’
Emir of Kuwait sends King Salman GCC Summit letter
- Message delivered to minister during meeting in Riyadh
RIYADH: King Salman has received a letter from the Emir of Kuwait Sheikh Meshal Al-Ahmad Al-Sabah inviting him to the Gulf Cooperation Council Summit.
The message was delivered to Minister of State Prince Turki bin Mohammed bin Fahd during a meeting in Riyadh on Tuesday with Kuwait’s Foreign Minister Abdullah Ali Al-Yahya.
The two sides held cordial talks and discussed issues of common interest.
The 45th GCC Summit takes place in Kuwait on Sunday.
King Salman asks people of Saudi Arabia to pray on Thursday for rain
RIYADH: King Salman called on Muslims in Saudi Arabia to pray on Thursday for rain, the Saudi Press Agency reported.
“Everyone who is able should be keen to perform the prayer, in accordance with the tradition of Prophet Muhammad,” the Royal Court said.
Muslims are often asked to pray for rainfall in times of drought or other water shortages.
Global Harmony event concludes with celebration of Egyptian culture in Riyadh
- Saudi Arabia and Egypt continue to strengthen their political relationship through agreements in trade, tourism, energy and culture
RIYADH: The Global Harmony initiative concludes its third edition with a week-long celebration of Egyptian music, art and tradition in Suwaidi Park as part of Riyadh Season.
Running from Nov. 24-30 and organized by the Ministry of Media, the event invites visitors to experience Egypt’s rich heritage through a range of cultural activities.
Speaking to Arab News, Egyptian Ambassador to Saudi Arabia Tarek El-Meligy highlighted the deep-rooted connection between the two nations. “The Egyptian community is the most harmonious, coexistent and understanding in a positive way within Saudi society,” he said.
“If you ask any Egyptian which country they would like to live in after Egypt, they will say Saudi Arabia.”
Sarry Shaaban, an executive and consultant at the General Entertainment Authority, said: “We are talking about millions of visitors, both residents and Saudis, entering the park. Whether I’m a resident, a Saudi or from a country hosting the event, it provides an opportunity for residents to learn about your culture, colors, explore its arts, food, crafts, and traditional industries.”
Live music and dance performances displaying Egypt’s cultural traditions, with the rhythm of drums and flutes and performers in traditional costumes, have brought the life and spirit of Cairo’s streets to Riyadh.
A separate bazaar area has been set up featuring Egyptian cuisine, traditional clothing and handcrafted items.
“An event like this carries positive messages and highlights something we strive to emphasize every day, that we are one people, united by love and affection,” said El-Meligy.
Egyptian Sameh Nabil emphasized the feel of unity: “This initiative brought us closer together as Egyptians, and with Saudis here, I feel like we are brothers. I always feel like we are not expatriates.”
And visitor Khaled Zahir said: “This event reflects the love, connection and affection between Egyptians living in the Kingdom and Saudis.”
Egyptians make up 11 percent of Saudi Arabia’s population, according to the Saudi Census, meaning such exhibitions are important in promoting mutual respect and harmony.
El-Meligy said Saudi Arabia hosted the largest Egyptian expatriate community abroad, with remittances from those in the Kingdom forming a significant part of their home nation’s income.
“In recent months, remittances from Egyptians abroad have increased substantially, thanks to the facilities between the two countries and the confidence in both the Saudi and Egyptian economies,” he added.
Saudi Arabia and Egypt continue to strengthen their political relationship through agreements in trade, tourism, energy and culture. In his October visit to Cairo, Saudi Crown Prince Mohammed bin Salman met with Egyptian President Abdel Fattah El-Sisi to discuss investment opportunities and the establishment of a supreme coordination council to deepen bilateral relations.
Trade between Saudi Arabia and Egypt saw a 35.16 percent annual increase in the first half of 2024, according to the General Authority of Statistics. The increase was driven by a 73.44 percent surge in Saudi imports from Egypt, totaling $4.18 billion.
Egypt has also shown a growing interest in investing in Saudi Arabia, with a 71 percent rise in licenses granted to Egyptian firms in the second quarter of 2024.
The festival, which began in October, highlights the lives, contributions and cultural integration of its residents. So far, it has celebrated cultures including Indian heritage and moving through Philippine, Indonesian, Pakistani, Yemeni, Sudanese, Bangladeshi, Jordanian, Lebanese and Syrian traditions.
Riyadh Expo 2030 provides progress update to international exhibitions regulator BIE
- Members of Riyadh Expo 2030 update Bureau International des Expositions on progress toward hosting the event
RIYADH: A Saudi delegation representing Riyadh Expo 2030 took part in a Bureau International des Expositions meeting on Tuesday to review the Kingdom’s readiness to host the global event.
In November 2023, Saudi Arabia won the bid to host the 2030 World Expo between October 2030 and March 2031 in the capital, Riyadh.
The Riyadh Expo 2030 delegation took part in the 175th general assembly meeting of the BIE, a Paris-based intergovernmental organization which oversees and regulates World Expos, the Saudi Press Agency reported.
They updated senior officials of the BIE about the latest Saudi developments and preparations for hosting the event. They also discussed progress on work to accommodate an expected 246 exhibitors, including countries, organizations and companies, at a site north of Riyadh.
Under the theme “The Era of Change: Together for a Foresighted Tomorrow,” the event aims to be a unique platform for innovations and modern technologies which aim to find answers to challenges facing the planet in various fields, according to the Expo 2030 website.
Hospitality sector innovations, trends showcased at Riyadh exhibition
- Event gathers local and international exhibitors, industry leaders, and visitors to showcase trends, innovations, and business opportunities in the sector
- Exhibition features an array of engaging activities, including live cooking demonstrations by celebrity chefs, a barista competition, and workshops for aspiring culinary professionals
RIYADH: This year’s HORECA exhibition held in Riyadh is underscoring the Kingdom’s growing influence in the global hospitality market.
Held at the Riyadh International Convention and Exhibition Center, the three-day event concludes on Nov. 27 and gathers local and international exhibitors, industry leaders, and visitors to showcase trends, innovations, and business opportunities in the sector.
The event contributes to Saudi Arabia’s Vision 2030 by fostering private-sector growth, promoting tourism, and enhancing the country’s food and beverage industries.
The exhibition features an array of engaging activities, including live cooking demonstrations by celebrity chefs, a barista competition, and workshops for aspiring culinary professionals.
Visitors can sample creative dishes, observe new techniques in food and beverage, and explore sustainable packaging solutions, among other highlights.
Prince Waleed bin Nasser, guest of honor and CEO of Mukatafa Co., highlighted the importance of collaboration between the private and public sectors.
Speaking at a session on public policies impacting the food and beverage sector, he said: “The vision today aspires for the private sector to play a significant role in the development of the economy. The private sector must take the initiative to have a voice. To achieve this, it needs to be organized and united in presenting a single perspective.”
He also emphasized the need for proactive engagement: “We must work as one, united with a common vision, and present this vision in a professional manner backed by facts, ensuring that the decisions made have a positive impact on the sector and the citizens.”
Culinary competitions are among the highlights celebrating creativity and technical skills at HORECA. Mohammed Naif, a participant representing Saudi Arabia’s Hotel and Tourism Management Institute, told Arab News: “The atmosphere was amazing, and the competition was all about passion and enjoyment. There was a panel of judges and organizers who were very supportive — if you made a mistake, they would help you, and if you had an incomplete idea, they would guide you.
“I encourage anyone with a passion for cooking to join, showcase their creativity, and learn while bringing out their best.”
The exhibition also provided a platform for networking, with exhibitors showcasing local innovations as well as international brands. From cutting-edge hospitality tech to Saudi-inspired culinary creations, the event highlighted the Kingdom’s growing reputation as a global hub for the sector.
