US-Saudi Arabia business relationship moves beyond ‘guns for oil’

Saudi Arabia’s King Abdul Aziz meets with American President Franklin D. Roosevelt on Feb. 14, 1945. (SPA)
Updated 20 March 2018
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US-Saudi Arabia business relationship moves beyond ‘guns for oil’

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.


Makkah royal commission showcases city’s cultural, tourist offerings at World Travel Market

Updated 9 sec ago
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Makkah royal commission showcases city’s cultural, tourist offerings at World Travel Market

  • Saudi minister of tourism speaks of Kingdom’s investment in sector

LONDON: The Royal Commission for Makkah City and Holy Sites this week showcased key projects that highlight the Saudi city’s rich cultural and historical significance, as part of the Saudi delegation at the World Travel Market 2024 in London.

Major initiatives featured by the RCMC included the Hira Cultural District, the Revelation Exhibition, the Kiswa Factory of the Holy Kaaba, and the Institute of Manuscripts and Revival of Islamic Heritage.

The RCMC pavilion also provided insights into major infrastructure developments, such as Makkah’s public transportation system.

This system, with 12 bus routes covering all neighborhoods, is designed to ensure seamless, reliable travel and improve the quality of life for both residents and visiting pilgrims.

This year’s World Travel Market event, which finished on Thursday, also saw Ahmed Al-Khateeb, the Saudi minister of tourism and chairman of the Saudi Tourism Authority, launch the Kingdom’s participation with the Saudi Land Pavilion.

The pavilion included the Visit Saudi exhibition, organized by the Saudi Tourism Authority for the fourth consecutive year and supported by more than 70 partners in the sector, including destinations, hotels, airlines and travel companies.

Al-Khateeb said: “Saudi Arabia, the fastest-growing tourist destination globally, seeks to solidify its leadership in world tourism, aligning with the Saudi Vision 2030 goals by highlighting unique destinations, new projects, and significant investment opportunities.”

He added: “Saudi Arabia is the largest global investor in the tourism sector.”


Meet Reman Assere, Saudi Arabia’s youngest Arabic calligraphy instructor

Updated 22 min 54 sec ago
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Meet Reman Assere, Saudi Arabia’s youngest Arabic calligraphy instructor

  • She became the youngest certified instructor at the age of just 11
  • Assere now tutors students of all ages

MAKKAH: After qualifying at just 11 years old, Reman Assere officially became Saudi Arabia’s youngest calligraphy instructor.

Her journey started in fifth grade, sparked by a school activity. She began with basic exercises but, with continuous practice and self-learning through platforms such as YouTube, she steadily refined her skills.

Arabic calligraphy is celebrated for its variety of styles, including Kufic, Naskh, Thuluth, Diwani, and Ruq’ah, each with a unique character and distinct lettering technique. (Supplied)

Her ambitions and her love of the art drove her to undertake professional training in Kufic calligraphy, believed to be the earliest example of a universal style of Arabic calligraphy. Once qualified, she was registered on the Ministry of Culture’s official platform, Al-Khattat.

What truly set her apart and caught people’s attention was her relentless dedication to learning. Even during vacations, she practiced tirelessly, seeking out special events and connecting with other calligraphers.

FASTFACT

Reman Assere’s ambitions and her love of the art drove her to undertake professional training in Kufic calligraphy.

Now aged 15, Assere told Arab News that her professional training was carried out under the guidance Shurooq Al-Harbi. She also highlighted the pivotal role played in her development by Prof. Siraj Al-Omari, whose ongoing support and encouragement were instrumental.

Today, Assere has become proficient in both in writing and teaching Kufic calligraphy and is expanding her expertise to include the Diwani style.

Reman Assere

However, her journey has been far from easy. A lack of calligraphy institutes in her native region of Abha posed considerable challenges and meant she had to rely on online courses or travel to other cities.

It was worth it, however. Her numerous awards include first place in the 2023 Cultural Skills Competition and the Ministry of Education’s National Olympiad for Arabic Calligraphy. She has also demonstrated her talents at prominent events, such as the Layalina Festival in Wadi Al-Dawasir and the Abha Shopping and Entertainment Festival.

Arabic calligraphy is celebrated for its variety of styles, including Kufic, Naskh, Thuluth, Diwani, and Ruq’ah, each with a unique character and distinct lettering technique. (Supplied)

Assere has also led courses at the Holy Mosque Library in Makkah and organized calligraphy workshops in schools.

Today, she is recognized as one of the most influential trainers in Arabic calligraphy, teaching across all age groups. She takes pride in seeing her students compete in calligraphy competitions, a testament to the success of her approach and teaching methods.

Reman Assere has become proficient in both in writing and teaching Kufic calligraphy and is expanding her expertise to include the Diwani style. (Supplied)

Even in an age of rapid technological advancements, Assere is confident that calligraphy’s unique beauty will endure. She believes the future is bright for students and trainees, as the art of calligraphy continues to inspire and cultivate creativity.

She explained how the beauty of Arabic calligraphy is in the balance and harmony of its letters, with fluid lines that interlace. For Assere, Arabic calligraphy not only captures the essence and grace of the Arabic language, but it also allows the writer to convey thoughts and emotions.

Arabic calligraphy is celebrated for its variety of styles, including Kufic, Naskh, Thuluth, Diwani, and Ruq’ah, each with a unique character and distinct lettering technique. Rooted in precise geometric principles, Arabic calligraphy achieves a harmonious visual balance, allowing for flexibility in letter formation, overlapping designs, and intricate decorative motifs.

Assere said: “The beauty of Arabic calligraphy extends beyond writing; it is a visual art that enhances both artworks and decorations. Over time, it has become a cultural symbol that embodies Arab and Islamic identity.”

 

 


Saudi Arabia’s urban planning on display at WUF

Updated 08 November 2024
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Saudi Arabia’s urban planning on display at WUF

  • The pavilion highlighted prominent Saudi infrastructure development initiatives, in line with international quality standards, that meet the needs of residents and visitors of Saudi cities

CAIRO: The Saudi pavilion at the World Urban Forum in Cairo this week hosted a series of workshops and bilateral meetings on the Kingdom’s strategies and projects in comprehensive urban planning.

The Saudi presence also underlined the positive effect of these strategies on achieving sustainable urban development and improving the quality of life in Saudi cities, in line with the goals of Vision 2030.

Through representatives and officials of the Ministry of Municipal and Rural Affairs and more than 30 national entities, the Saudi pavilion showed the Kingdom’s efforts to adopt and expand comprehensive urban planning practices focused on sustainability, and apply the requirement to study environmental impact in municipal and investment projects.

The meetings highlighted the concept of smart municipalities aimed at improving the quality of municipal services in Saudi regions and adopting modern technologies and enhanced municipal regulations for smart city policies, as well as the use of artificial intelligence technologies and data in improving the quality of life.

The pavilion highlighted prominent Saudi infrastructure development initiatives, in line with international quality standards, that meet the needs of residents and visitors of Saudi cities, the Saudi Press Agency reported, in addition to urban landscape development projects and visual distortion treatment projects.

 

 


Saudi foreign minister, Blinken discuss regional crises

Updated 08 November 2024
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Saudi foreign minister, Blinken discuss regional crises

  • Two discussed ongoing efforts to address the issues in Gaza and Lebanon

RIYADH: Saudi Minister of Foreign Affairs Prince Faisal bin Farhan spoke on the phone on Friday with US Secretary of State Antony Blinken, Saudi Press Agency reported.

During the call, they reviewed regional issues, with a particular focus on Gaza and Lebanon and ongoing efforts to address the issues there, SPA added.

In a separate call on Friday with UAE Foreign Minister Sheikh Abdullah bin Zayed Al-Nahyan, Blinken stressed the need to stop the fighting in Sudan and the need to support efforts to form a civilian government, the State Department said.

Blinken also discussed the need to expand humanitarian access to Sudan and thanked the UAE for its provision of aid for Gaza and Lebanon, according to a State Department statement.


Saudi health minister unveils new healthcare projects in Qassim

Updated 08 November 2024
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Saudi health minister unveils new healthcare projects in Qassim

  • Saudi Health Minister’s visit marked the inauguration of several healthcare projects, including 54 initiatives valued at more than SR 448 million ($119.4 million)

BURAIDAH: Saudi Health Minister Fahad Al-Jalajel visited Qassim to review several healthcare projects designed to enhance the quality, efficiency and accessibility of medical services for residents.

These initiatives align with the objectives of the Health Sector Transformation Program, a key component of the Kingdom’s Vision 2030, which aims to foster a “vibrant society” enjoying a healthy and prosperous life, the Saudi Press Agency reported.

His visit marked the inauguration of several healthcare projects, including 54 initiatives valued at more than SR 448 million ($119.4 million). Among these were key projects under the Qassim Health Cluster, such as the dental center in Unaizah, along with community-supported initiatives worth nearly SR102 million.

Highlights included the Prince Faisal bin Mishaal Fertility Center in Buraidah, the Abdullah Saleh Al-Othaim Diabetes Treatment Center at Al-Rass General Hospital, the Al-Rajhi Bank Cardiac Catheterization Center, and several other specialized healthcare facilities.