Saudi Arabia Plans $600 Billion US Investment Boost

RIYADH, Saudi Arabia – Saudi Crown Prince Mohammed bin Salman (MBS) announced on January 31, 2025, that the kingdom plans to invest $600 billion in the United States over the next four years, marking a significant expansion of economic ties between the two nations. This ambitious initiative builds on nearly a century of strategic partnership rooted in oil, mutual investments, and political alliances.

The Saudi-American relationship dates back to 1933, when American companies first tapped into Saudi Arabia’s vast oil reserves. A pivotal moment came in 1945, when King Abdulaziz Al-Saud met U.S. President Franklin Roosevelt aboard the USS Quincy, solidifying a bond that has endured through decades of geopolitical shifts. In 1974, Prince Fahd bin Abdulaziz, later king, established the U.S.-Saudi Arabian Joint Commission, further deepening economic and technological cooperation.

MBS’s announcement follows a conversation with U.S. President Donald Trump, who was sworn in for his second term on January 21, 2025. The $600 billion investment plan aims to capitalize on Saudi Arabia’s rapid economic growth, focusing on sectors such as artificial intelligence, military industries, space exploration, and nuclear energy. This aligns with SoftBank‘s $500 billion AI investment initiative, in which Saudi Arabia holds a significant stake.

The U.S. remains a key economic partner for Saudi Arabia, with bilateral trade exceeding $62 billion and more than 500 American companies operating in the kingdom. Saudi holdings in U.S. Treasury bonds reached $140.3 billion in June 2024, underscoring the kingdom’s financial commitment to its ally.

“This investment plan is a testament to the enduring strength of Saudi-American relations,” said Mohammed Al-Saeed, a Saudi economic analyst. “It promises economic integration, industry localization, and mutual benefits for both nations.”

The announcement comes amid broader efforts to realign Saudi-American relations, including security and political cooperation. Over the past 90 years, the partnership has not only benefited both countries but also contributed to global energy security and economic stability.