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Arab News

07-05-2025

Saudi Arabia sees no rival to US in capital markets, says Al-Falih
RIYADH: Saudi Arabia views the US as unmatched in both capital markets and innovation, with no close competitor, and continues to actively invest in American institutions, a senior official stated.
Speaking during a panel discussion at the Milken Institute in Los Angeles, Saudi Investment Minister Khalid Al-Falih stated that the Kingdom continues to trust and engage with US-based partners as part of its long-term economic strategy.
'There is no close competitor to the US in many aspects, certainly capital markets, their depth and their breadth, and also the innovation spirit,' Al-Falih said.
He added that in the last three or four years, there has been widespread discussion about the next tectonic shift in 'how we live and how we do business and how we govern, driven by AI, which is primarily a US innovation.'
Al-Falih further emphasized the Kingdom's continued engagement with American institutions: 'Our trust in the US remains strong, and we continue to work with American companies and financial institutions. We also invest in the US for the same reasons I mentioned.'
He acknowledged that while the global economic landscape is undergoing a transformation, the US continues to stand out for its ability to drive technological revolutions — particularly in artificial intelligence — and for its deep-rooted institutional strength.
The minister noted that current shifts in global influence are part of a long-term trend that has seen emerging markets gain ground, with the G7's share of global gross domestic product declining from 60 percent to 40 percent over the past decades.
'There has been sort of a democratization of some of the things that, psychologically, Western countries — including the US — thought they had forever, and you're seeing many countries today are able to innovate on their own and compete,' he said.
Addressing broader geopolitical and economic turbulence, Al-Falih said Saudi Arabia and other Gulf Cooperation Council economies have developed the resilience to weather global shocks, including energy price volatility and regional disruptions such as the Red Sea shipping crisis.
'In the Middle East, I will just say at this outset that we have built, over the years — for unfortunate reasons — a lot of resilience because we're used to shocks. We're used to security challenges, and we have the mechanisms to absorb different types of shocks,' Al-Falih said.
Despite global uncertainties, he said the Kingdom continues to see robust investment growth — both local and foreign — driven by confidence in Saudi Arabia's economic reforms and strategic positioning.
'I can tell you, as minister of investment, we're seeing very healthy investment continuing to happen in the Kingdom. A lot of it is local — driven by our private sector and our sovereign wealth fund — but a significant growth year on year from foreign investors who… do believe that, in the overall balance of things, there is more opportunity than risk,' he said.
The minister concluded by emphasizing that the GCC, and Saudi Arabia in particular, offers favorable risk-return trade-offs for international investors seeking long-term opportunities.
'We are working relentlessly to make Saudi Arabia the world's most attractive investment destination — not merely a facilitator of investments,' the minister said.
Al-Falih noted that the Kingdom offers investors an 'integrated, end-to-end service that supports them throughout their entire journey.'
He described the Kingdom's brand as dynamic, stating: 'A nation's brand is never static; it evolves with history and global developments.'
On the energy transition, the minister cautioned: 'If we rush without proper planning, we risk severe disruptions — as witnessed in the Iberian Peninsula.'
'Energy must be affordable, reliable, and sustainable — this is the cornerstone of any successful policy,' he added.
Al-Falih concluded by reaffirming the Kingdom's strength stating: 'We possess the financial reserves and tools necessary to absorb global shocks and continue progressing.'
In January, Saudi Arabia announced plans to expand its trade and investment ties with the US to at least $600 billion over the next four years, according to the Saudi Press Agency.