Saudi Arabian Crown Prince Mohammed bin Salman said he plans to invest $600 billion in the United States. The commitment comes from President Donald Trump’s first call with a foreign leader in his second term.
President Trump confirmed the news Thursday, Jan. 23, during a speech at the World Economic Forum in Davos, Switzerland.
“I’ll be asking the crown prince, who’s a fantastic guy, to round it out to around one trillion,” Trump said. “And I think they’ll do that because we’ve been very good to them.”
Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.
Point phone camera here
What will the $600 billion go towards?
The crown prince’s commitment builds on the president’s promise to increase investment in the U.S.
He said he wants to revive manufacturing and is threatening steep tariffs against governments acting against U.S. interests.
State-run Saudi news agency, SPA, reported the crown prince wants to use the $600 billion to expand investment and trade with the U.S. over the next four years.
During the call on Wednesday, Jan. 22, the crown prince said the kingdom looks forward to capitalizing on partnerships and opportunities created by the new administration’s reforms, which could achieve “unprecedented economic prosperity.”
How is the relationship between Trump and the crown prince?
SPA nor Trump have given details on where the investments would be placed but the crown prince’s announcement could strengthen his ties with Trump.
They developed a good relationship during Trump’s first term when he pursued major deals with the kingdom, including arms sales.
Saudi Arabia does rely on U.S.-made weapons and defense systems, which could be part of this investment round.
Will the price of oil come down?
The new multi-billion dollar deal is huge even by Saudi Arabia’s standards. The country is known for its massive oil wealth.
The deal amounts to around 55% of the country’s gross domestic product, according to World Bank Data.
Trump on Thursday, Jan. 23, also talked about working with Saudi Arabia to bring the cost of oil down.
“You gotta bring it down, which frankly I’m surprised they didn’t do before the election,” Trump said. “If the price came down, the Russia-Ukraine war would end immediately.”
According to the White House, the two discussed bringing stability to the Middle East and fighting terrorism on the call.
