Saudi Arabia invests 600 billion dollars – Trump praises planned strength!

Saudi Arabia invests 600 billion dollars – Trump praises planned strength!

Saudi Arabia reiterated its long-term plans for massive investments in the US during US President Donald Trump's visit. Saudi Investment Minister Khalid al-Falih announced that the kingdom plans to invest a total of $600 billion in the American economy over the next four years. This announcement was made during a phone call between Trump and Saudi Crown Prince Mohammed bin Salman.

But amid financial challenges, including a potential $75 billion budget deficit this year and falling oil prices that are no longer reaching the needed $90 to $95 a barrel, it remains unclear how Saudi Arabia can meet those commitments. OPEC+ had already taken measures to stabilize oil prices and combat inflationary pressures.

Economic ambitions and challenges

The amount of planned investments corresponds to 55 percent of Saudi Arabia's gross domestic product. This ambitious initiative is intended not only to strengthen bilateral relations, but also to lead to “unprecedented economic prosperity,” as the Crown Prince emphasized. Trump praised these investments both in terms of creating jobs in the United States and the possibility of increasing the investment amount to about $1 trillion.

Another major project Saudi Arabia is pursuing is the Neom megaproject, which is estimated to cost up to $1.5 trillion. However, the financing of this enormous sum remains unclear. Saudi Arabia also plans to host the World Expo in 2030 and a World Cup in 2034, both events will be associated with high costs.

Prominent participants and strategies

Trump will also give a speech at an investor conference in Riyadh where more than 2,000 participants, including prominent businessmen such as Elon Musk and Amazon boss Andy Jassy, ​​are expected. The conference serves as a platform to further promote investments and deepen economic prospects between the two countries.

The investment announcement comes at a time when Saudi Arabia is experiencing financial deficits due to infrastructure projects and the volatile situation in the oil markets. In order to advance its own “Vision 2030”, the Saudi sovereign wealth fund also plans to invest more money domestically, which should promote a comprehensive economic transformation in the kingdom.