US-Saudi trade is on the cusp of a transformative shift
https://arab.news/r8crs
US President Donald Trump's visit to Saudi Arabia, along with stops in other Gulf Cooperation Council nations, is poised to further strengthen economic ties with the region.
With Saudi Arabia standing as the Middle East's largest economy, the visit underscores the Kingdom's central role in regional and global trade.
Trump's decision to select Saudi Arabia as the destination for his first foreign trip as president in 2017 — and to return again now in his second term — highlights the Kingdom's continued political and economic importance.
It also reaffirms the enduring partnership between Saudi Arabia and the US, rooted in decades of strategic cooperation.
The bilateral trade and investment relationship between the two nations dates back to 1933, when Saudi Arabia signed a concession agreement with Standard Oil of California, granting exploration rights that led to the historic discovery of oil at Dammam Well No. 7 in 1938.
That discovery marked the birth of the Saudi oil era and laid the foundation for a robust, long-term partnership.
According to the Office of the United States Trade Representative, total US goods trade with Saudi Arabia reached an estimated $25.9 billion in 2024. US goods exports to the Kingdom amounted to $13.2 billion, down 4.8 percent ($670.1 million) from 2023, while imports totaled $12.7 billion, reflecting a 19.9 percent decline from the previous year.
Nevertheless, the US trade surplus with Saudi Arabia rose to $443.3 million in 2024, a 121.6 percent increase over 2023.
Crown Prince Mohammed bin Salman's recent announcement of a $600 billion investment in the US marks a transformative step toward deepening bilateral economic ties.
Given President Trump's earlier tariff policies — imposed even on long-standing allies in pursuit of what he called liberating the American economy — Saudi Arabia's position as a neutral party in those global trade tensions has elevated its image as a stable and reliable trade partner for the US.
Looking forward, Saudi Arabia's Vision 2030 will play a critical role in expanding trade and investment between the two nations. The initiative places emphasis on diversifying the Saudi economy, with a specific focus on renewable energy, digital innovation, and high-tech industries.
This shared vision was highlighted by a joint announcement on Sept. 8, 2023, when both governments signed a memorandum of understanding to collaborate on the creation of intercontinental green corridors, leveraging Saudi Arabia's unique geographic position as a bridge between Asia and Europe.
In addition, bilateral defense ties remain strong. The US State Department's approval of a $3.5 billion sale of medium-range air-to-air missiles to Saudi Arabia will reinforce military cooperation and contribute to regional security while expanding defense trade.
Trade between the two nations reflects flexibility and breadth. Saudi Arabia continues to be a key global supplier of crude oil, fertilizers, and organic chemicals, while the United States exports a wide array of goods, including electrical and mechanical equipment, pharmaceuticals, agricultural products, and industrial machinery.
The US-Saudi economic relationship continues to evolve, anchored in a legacy of shared strategic interests and mutual economic benefit.
Talat Zaki Hafiz
The automotive sector remains the top US export to Saudi Arabia, reaching $2.8 billion in 2023 — a 32 percent year-on-year increase. Machinery, nuclear reactors, and related components accounted for $2.5 billion (18 percent of all US exports), a 38 percent rise from 2022. Aircraft and aircraft parts followed at $1.7 billion.
In summary, the US-Saudi economic relationship continues to evolve, anchored in a legacy of shared strategic interests and mutual economic benefit. As Saudi Arabia advances toward its Vision 2030 goals — centered on sustainability, diversification, and innovation — it is actively shaping a future of expanded cooperation with the US.
For Washington, Saudi Arabia remains a crucial partner. The Kingdom supplies essential resources such as crude oil, steel, and aluminum, which contribute to US energy security and support major industries including manufacturing, aerospace, automotive, and defense. These exports bolster American productivity and supply chain resilience.
At the same time, US companies gain valuable access to a rapidly growing Saudi market, enriched by megaprojects and investments in infrastructure, technology, renewable energy, and manufacturing.
Moreover, Saudi Arabia's strategic location as a logistics hub between Asia, Europe, and Africa enhances global trade connectivity, creating new opportunities for US exports and foreign investment.
Through continued collaboration, strategic investment, and shared innovation, the US-Saudi partnership stands well-positioned to navigate a changing global economic landscape and deliver long-term, mutually beneficial outcomes for both nations.
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