Saudi investment minister: US unmatched in innovation, financial markets

Saudi Gazette

06-05-2025

Saudi Gazette report
LOS ANGELES — Saudi Arabia's Minister of Investment Khalid Al-Falih said the United States remains unrivaled in several critical areas — particularly financial markets and innovation — which is why the Kingdom continues to invest there.
Speaking at a panel hosted by the Milken Institute in Los Angeles, Al-Falih emphasized that U.S. leadership in artificial intelligence and institutional resilience make it a compelling destination for Saudi capital.
'There's really no true competitor to the U.S. in key areas,' Al-Falih said. 'It's built on institutions, and in the end, it always does the right thing.'
The session came days ahead of a planned visit by U.S. President Donald Trump to Saudi Arabia.
Al-Falih described AI as a transformative American innovation, comparable to past economic revolutions like globalization, which he said helped lift many nations from poverty to prosperity.
He noted that Saudi Arabia is also witnessing a surge in strong investments, most of which are domestic and driven by the private sector and the Public Investment Fund (PIF).
'We're also seeing year-on-year growth in foreign direct investment from investors who see greater opportunity than risk in the right Middle Eastern markets,' he said.
Al-Falih added that the GCC region — particularly Saudi Arabia — offers a healthy balance of risk and return, making it attractive for global investors.
The minister outlined the Kingdom's ongoing regulatory reforms, improved incentives, and streamlined processes as part of its drive to become the most investment-friendly country in the world.
He acknowledged that the bulk of investment inflows currently stem from the PIF, but added that growing foreign interest is a strong vote of confidence in the Saudi economy.
Addressing the global energy transition, Al-Falih warned that a rushed shift to renewables could cause major disruptions, especially given the intermittency of solar and wind energy.
'The challenge is not about being pro or anti-fossil fuels,' he said, 'but about managing them efficiently — they're still a vital source.'
Al-Falih called for coordinated global investment in infrastructure and tools that can enhance energy system resilience at local, regional, and international levels.
On climate change, he acknowledged the increasing severity of weather events, even in places like Los Angeles, and stressed the need to approach the climate reality seriously, especially with rising demand from AI, data centers, and households.