Mohammad Bin Salman announced last week that the country plans to spend $600 billion in the US over the course of the four years that follow. The remarks followed US President Trump attaching a cost to his first international visit, which was to go back to the monarchy.
The custom of U.S. presidents making their first foreign travel to the United Kingdom was broken by Trump few months into his first term in a visit to Saudi Arabia.
His government’s strong links to the leaders of Saudi Arabia, the King and the Crown Prince, were further highlighted by the trip he made in 2017. Additionally, Trump’s own real estate firm has explored transactions around the area. The Saudi Press Agency, which is administered by the government, published the remarks made by the young Prince early on Thursday. He called Mr. Trump and recognized the financial investments.
The crown prince reaffirmed the country’s goal to increase commerce and trade with the US. For the next four years while Donald Trump is in power, the process will continue.
The expenditures would total at least $600 billion and maybe more.
Where those trades and stakes may be made was not explained in detail in the reports. The United States has been less dependent on Saudi oil supplies over the past few years. For many years, Saudi hydrocarbon was the cornerstone of their partnership.
In addition to having a look at sports, Saudi royal wealth fund has made significant investments in American companies. Riyadh mostly uses defense equipment and weaponry manufactured in the United States. Therefore, the military industry may comprise a significant portion of the investment.
Saudi Limitations
The White House did not immediately provide an explanation about the talk. Whether Mr. Trump’s chat with Bin Salman was his initial interaction with a foreign authority since returning to power was also unclear at the time.
It happened to be the initial documented call of that kind, though. Early on Thursday, Bin Salman also had a conversation with U.S. Secretary of State. Mr. Trump mentioned traveling to Riyadh as his first international visit on Monday following his inauguration.
“Usually, the first international journey is with the United Kingdom, but the previous time, I traveled to Saudi Arabia,” in the presidential office, Mr. Trump told reporters. “That was because they committed to buy $450 billion worth of our products.”
Four Arab countries, including Saudi Arabia itself, boycotted Qatar for years after the 2017 visit. Donald Trump and Saudi Arabia have a tight relationship. Even following Prince Mohammed was linked to the assassination and dismemberment of Washington Post contributor Jamal Khashoggi, ties persisted.
Additionally, the Saudi royal family and the administration of Joe Biden have been in communication for long. The focus of the negotiations was a broader agreement to acknowledge Israel in return for defense safeguards from the United States.
Many countries’ gross domestic output is outweighed by the Saudi $600 billion commitment. It occurs at a time when Riyadh is dealing with its own financial difficulties. Long after the Covid-19 epidemic peaked, oil prices worldwide are still low, which has an impact on the kingdom’s earnings.
Saudi Arabia, in the meantime, hopes to carry out his $500 billion initiative at NEOM. It is a brand-new city in the Red Sea deserts in the western regions of the country. In order to hold World Cup games in 2034, the country is additionally required to construct fresh stadiums and facilities that will cost tens of billions of dollars.