During a Thursday phone call with President Trump, Saudi Arabia’s crown prince announced the kingdom plans to invest $600 billion in the United States over the next four years. This announcement follows President Trump’s suggestion that a return trip to Saudi Arabia for his first foreign visit, as he did in 2017, would be contingent upon significant Saudi investment.
This decision marks a departure from the tradition of U.S. presidents initially visiting the United Kingdom for their first overseas trip. It also highlights the strong relationship between the Trump administration and Gulf state leaders, a connection further underscored by the Trump Organization’s business dealings in the region.
The Saudi Press Agency, a state-run outlet, initially reported the crown prince’s statement. The report stated the crown prince confirmed the kingdom’s intent to significantly expand investments and trade with the U.S. over the next four years, totaling $600 billion or potentially more.
Specific investment areas remained unspecified. The U.S.’s dependence on Saudi oil has diminished in recent years, altering a cornerstone of their long-standing relationship. Saudi sovereign wealth funds have made substantial investments in American companies and shown interest in the sports industry.
A significant portion of the investment could be allocated to U.S.-made weaponry and defense systems, given Saudi Arabia’s reliance on them.
The White House has yet to release an official statement regarding the call. It’s also unclear if this call was President Trump’s first with a foreign leader since his re-election, though it was the first reported foreign contact.
The crown prince also spoke with U.S. Secretary of State Marco Rubio on Thursday.
On Monday, following his inauguration, President Trump indicated a potential return trip to Saudi Arabia as his first foreign visit, mirroring his 2017 trip.
“The first foreign trip typically has been with the U.K. but … I did it with Saudi Arabia last time because they agreed to buy $450 billion worth of our products,” Trump told reporters. “If Saudi Arabia wanted to buy another $450 billion or $500—we’ll up it for all the inflation—I think I’d probably go.”
His 2017 visit to the kingdom initiated a prolonged boycott of Qatar by four Arab nations, including Saudi Arabia.
Trump maintained close ties with Saudi Arabia, even after Prince Mohammed’s alleged involvement in the 2018 killing of Washington Post columnist Jamal Khashoggi in Istanbul. The kingdom has also engaged in ongoing discussions with Israel regarding a broader diplomatic recognition deal, potentially secured through U.S. defense support.
The $600 billion commitment, a sum exceeding the GDP of many nations, comes as Saudi Arabia faces its own budgetary challenges. Global oil prices remain subdued following the coronavirus pandemic, impacting the kingdom’s revenue.
Simultaneously, Prince Mohammed seeks to advance his $500 billion NEOM project, a new city in Saudi Arabia’s western desert, and the preparations for hosting the 2034 FIFA World Cup, both of which require significant infrastructural investment.