Latest news with #SaudiInvestment
Times of Oman
4 days ago
- Business
- Times of Oman
India grants Saudi PIF more flexibility in equity markets
New Delhi — India has agreed to exempt the Saudi sovereign wealth fund from key foreign portfolio investment (FPI) restrictions, according to two sources familiar with the development. The decision aims to facilitate greater capital flows into India by allowing Saudi Arabia's Public Investment Fund (PIF) and its affiliated entities to invest more flexibly in Indian equities. Current Indian regulations cap total investment from sovereign-related entities at 10% in a single company—regardless of whether investments come from separate arms of the same fund. 'This restriction has previously limited the PIF's ability to channel capital into India's high-growth sectors,' said one of the sources, who requested anonymity due to the sensitivity of the matter. The exemption, which comes after Indian Prime Minister Narendra Modi's high-profile visit to the Gulf nation in April, is seen as a strategic step to unlock Saudi capital. The two nations have been working to strengthen cooperation in critical sectors such as energy, infrastructure, and pharmaceuticals. During the visit, both sides reaffirmed their commitment to finalizing a bilateral investment treaty (BIT) and enhancing cross-border economic engagement. Saudi Arabia's PIF—one of the world's largest sovereign wealth funds with assets estimated at $925 billion—currently holds $1.5 billion in India's Jio Platforms and $1.3 billion in Reliance Retail. Analysts believe the exemption will pave the way for broader and deeper investments across India's fast-growing sectors. India, the third-largest oil importer globally, has been actively courting long-term capital from Gulf states to fund its infrastructure push. Simultaneously, Saudi Arabia has been seeking strategic investment opportunities in emerging markets as part of its ambitious Vision 2030 diversification strategy. To this end, the two countries formed a high-level task force in 2024 to accelerate Riyadh's plan to invest $100 billion in India. Progress on key issues such as taxation has been lauded by both governments as a breakthrough. 'The progress made by this Task Force in areas such as taxation was also a major breakthrough for greater cooperation in the future,' a joint statement issued in April said. Recent media reports suggest India is also considering tax relief measures for the PIF to further incentivize investment in infrastructure and energy projects.
Arab News
17-05-2025
- Business
- Arab News
Trump visit marks a new era of Saudi-US strategic ties
US President Donald Trump's visit to Saudi Arabia this week marked a decisive and strategic transformation of Saudi-US relations, producing outcomes that exceeded expectations. During his visit a wave of high-impact agreements were unveiled that reflect a remarkable alignment between the interests of the two nations and confirm the Kingdom's elevated status as a regional leader. Trump's emphatic endorsement of Crown Prince Mohammed bin Salman, his public praise for Saudi Arabia's reforms agenda, and his unreserved support on critical regional issues such as Iran, Syria, and security cooperation, signal a clear shift in Washington's strategic calculus. The outcomes of the visit not only fulfill key Saudi priorities, but surpass them, signaling a new era of influence, investment, and diplomatic engagement for the Kingdom. Trump expressed unequivocal support for the crown prince, praised Saudi Arabia's regional leadership, and reaffirmed US alignment with the Kingdom's positions on defense, investment, Iran, Syria, and Gulf security. The visit formalized a $600 billion Saudi investment commitment across US sectors such as energy, critical minerals, infrastructure, and advanced technology. These investments, previously pledged in principle, have now been operationalized, reinforcing economic interdependence while supporting the diversification goals of Saudi Vision 2030. US firms stand to benefit from capital inflows, industrial partnerships, and joint innovation ventures. The presence of American CEOs, including Elon Musk, Jensen Huang, and Larry Fink, at the Saudi-US Investment Forum that took place during Trump's visit underscored growing private sector confidence in Saudi Arabia's economic trajectory. Agreements have been signed in areas such as clean energy, artificial intelligence, cloud computing, logistics, and advanced manufacturing, further embedding American technological leadership into Saudi development plans. In defense, a $142 billion arms agreement constitutes the centerpiece of a revamped strategic agenda. It provides Saudi Arabia with advanced capabilities in air and missile defense, unmanned aerial systems, cybersecurity, and localized arms production. This enhances the Kingdom's deterrent posture and operational readiness, especially amid escalating regional threats and persistent instability. Crucially, this deal also signifies renewed American confidence in Saudi Arabia's role as the anchor of Gulf security. Trump's explicit reaffirmation of US military cooperation, intelligence sharing, and readiness to safeguard Gulf allies restores confidence shaken during previous US administrations. The visit also confirmed alignment on Iran. Trump echoed Saudi concerns and made it clear that Tehran faces a binary choice: reintegration through behavioral change or continued isolation. His rhetoric during the US-Gulf Cooperation Council Summit emphasized the contrast between Saudi-led reformism and Iranian adventurism, sending a clear signal of strategic convergence. The US continues to support pressure on Iran's nuclear and missile programs, and on its regional proxies. Meanwhile, Saudi Arabia maintains a calibrated policy that balances diplomatic channels, including the China-brokered detente, with a strengthened deterrent framework rooted in its US defense ties. The summit's message highlights the emergence of a recalibrated Gulf security architecture, one shaped jointly by Saudi resolve and renewed American backing. A notable outcome was the US shift on Syria. Trump's informal meeting in Riyadh with the country's new president, Ahmad Al-Sharaa, which was facilitated by the crown prince, marked a de facto endorsement of the Arab-led normalization effort. By lifting economic sanctions and deferring to regional leadership on the issue of the Syrian transition, Washington has implicitly acknowledged Riyadh's central role in post-conflict diplomacy. The White House's affirmation of Saudi Arabia's leadership sends a broader message: That a reformed and confident Saudi Arabia is integral to regional and global stability. Dr. Ali Awadh Asseri Saudi Arabia has shaped the Arab League consensus on Syria, prioritizing reconstruction, stability, and a phased reintegration into regional institutions. This outcome underscores the Kingdom's growing influence as a diplomatic broker capable of balancing internal Arab consensus and global alignment. On the Palestinian issue, Trump encouraged progress toward peace, but avoided linking normalization to Palestinian statehood, or conditioning it on broader strategic ties with Gulf states. Instead, he conveyed that normalization should be determined by regional actors themselves, whether Saudi Arabia or Syria, at a time of their choosing. At the US-GCC Summit, Gulf leaders, especially the crown prince, reiterated the centrality of a two-state solution to the conflict between Israelis and Palestinians, based on 1967 borders, as outlined in the 2002 Saudi-sponsored Arab Peace Initiative. Trump's ambiguity on the wider issue of the Middle East peace settlement provides Riyadh with valuable strategic latitude. It allows the Kingdom to reaffirm its principled stance on Palestinian rights under the Arab Peace Initiative, while simultaneously preserving the option to explore normalization at its own pace, free from external linkage to final status negotiations. This approach not only strengthens Saudi diplomatic flexibility but also positions it as a credible and autonomous leader in regional peace efforts. Taken together, these outcomes signify a broader policy realignment as the US-Saudi relationship evolves beyond transactional energy and defense ties into a comprehensive strategic partnership encompassing investment, regional diplomacy, and security coordination. Saudi Arabia now leads on many regional initiatives, and the US is repositioning itself as a supportive, reliable partner. This shift has been evident not only in joint declarations but also in the tone and symbolism of Trump's visit, from his remarks at the investment forum to the orchestrated choreography of the regional summit. It was further reinforced by his reiteration of US solidarity with the Arab Gulf when he visited Doha and Abu Dhabi after leaving Riyadh, and the additional agreements by Saudi Arabia's key GCC allies to invest in the US economy. Historically, the Saudi-US partnership has withstood Cold War rivalries, oil shocks, terrorism, and diplomatic strains. As was the case during his first term, Trump's return to Riyadh after his second inauguration reflected the durability of this alliance and also marks a correction of earlier US disengagements from Middle East policy. His unambiguous support for Saudi Arabia's Vision 2030, the country's social reforms, and regional engagement recognizes the Kingdom's transition from oil-dependent conservatism to a dynamic and globally connected actor. The White House's affirmation of Saudi Arabia's leadership sends a broader message: that a reformed and confident Saudi Arabia is integral to regional and global stability. Riyadh's foreign policy increasingly emphasizes balance and diversification. The Kingdom has strengthened relations with China, deepened energy and investment ties with India, and engaged with Russia on the issue of OPEC+ coordination, all while remaining anchored in its foundational partnership with Washington. This strategic pluralism is not a rejection of US leadership but a reflection of Saudi Arabia's rising agency. Trump's embrace of this flexible approach, rather than viewing it as a threat, underscores a pragmatic redefinition of alliance management in a multipolar world. While differences persist — notably over oil pricing, currency flows, and global alignments — these are manageable within the new framework of cooperation. What now binds the two nations is more substantive than ever: joint leadership in securing regional stability, counterterrorism, cyber cooperation, and long-term economic alignment. The Kingdom's investments in US infrastructure and technology offer tangible benefits to American workers and industries, while American know-how accelerates Saudi Arabia's transition to a post-oil economy. Looking ahead, Riyadh expects strategic consistency and institutional continuity from Washington. In return, it offers capital, regional leadership, and a shared commitment to security and innovation. If this trajectory is maintained, Trump's visit will be remembered as the moment when Saudi-US relations entered a new phase defined not by hierarchy or dependency, but by mutual respect, long-term vision, and joint responsibility for shaping the future of the Middle East and beyond.
Washington Post
16-05-2025
- Politics
- Washington Post
Trump's Mideast trip splashes out on deals and diplomacy but is unusually quiet on human rights
WASHINGTON — Saudi royalty and American billionaires were in the front row for a speech in Riyadh where President Donald Trump condemned what he called past U.S. interference in the wealthy Gulf states. Gone were the days when American officials would fly to the Middle East to give 'you lectures on how to live, and how to govern your own affairs,' Trump said at a Saudi investment forum this week.
Arabian Business
14-05-2025
- Business
- Arabian Business
Trump in Saudi: The Art of the ‘Gulf' Deal
Within hours of Donald Trump's plane touching down in Riyadh on Tuesday, the art of the deal was in full swing. With golden swords, Arabian horses, and a $600 billion Saudi investment commitment, Trump's return to the Kingdom looked less like diplomacy and more like a victory lap through his favourite marketplace. The contrast with Joe Biden's 2022 visit couldn't be more stark. Where Biden endured that awkward fist bump after calling Saudi Arabia a 'pariah,' Trump re c eived the full royal treatment: warplanes escorting Air Force One, Crown Prince Mohammed bin Salman personally greeting him, and even a mobile McDonald's outlet wheeled out for the media (a nice touch for a president famously fond of fast food). US President #Trump #TrumpInKSA #SPAGOV — SPAENG (@Spa_Eng) May 13, 2025 The numbers announced on Tuesday are genuinely staggering. The $142 billion arms deal, dubbed the 'largest defence sales agreement in history,' headlines a shopping list that includes Oracle's $14 billion cloud computing investment, hundreds of thousands of Nvidia AI chips heading to Saudi startup Humain, and AMD's $10 billion collaboration. Trump characteristically declared he wants to double the entire $600 billion commitment. But this isn't just about business. In a surprise announcement that might have caught even seasoned diplomats off-guard, Trump declared he was lifting US sanctions on Syria, giving the war-torn nation 'a chance at greatness.' He's scheduled to meet Syrian President Ahmed al-Sharaa on Wednesday — the first encounter between an American president and Syrian leader since Bill Clinton met Hafez al-Assad in 2000. The author of 'The Art of the Deal' has found his perfect negotiating partner in Crown Prince Mohammed bin Salman. Both leaders share an appetite for grand gestures, mega-projects, and the sort of transactional diplomacy that produces immediate, measurable results. Trump's Riyadh speech praised the Crown Prince's transformation of the Kingdom while carefully avoiding the sort of lectures on human rights that characterised previous administrations. From an Arab perspective, Trump's approach offers refreshing pragmatism. As he told the investment forum, 'Far too many American presidents have been afflicted with the notion that it's our job to look into the souls of foreign leaders.' For Gulf leaders weary of Western moralising, Trump's business-first mentality feels like diplomatic relief. But the personal element remains impossible to ignore. Trump's empire spans the region – golf courses in Dubai, developments in Saudi Arabia, and a new luxury resort planned for Qatar. When pressed about potential conflicts of interest, White House spokeswoman Karoline Leavitt called such suggestions 'frankly ridiculous.' The optics, however, speak volumes about a president who sees little distinction between personal business and national interest. Trump also secured the release of the last American hostage held by Hamas, Edan Alexander, and offered Iran a stark choice: make a deal or face 'massive maximum pressure.' It's diplomacy by ultimatum, delivered with characteristic bluntness from the comfort of a friendly capital. The four-day Gulf tour – Saudi Arabia, Qatar, and the UAE – reads like a perfectly choreographed deal-closing roadshow. Elon Musk joined the delegation (Starlink got Saudi approval), Oracle CEO Safra Catz praised Trump's 'decisive leadership,' and tech executives queued up to announce billion-dollar investments. Gulf royals have mastered Trump diplomacy: present him with superlative announcements, treat him like visiting royalty, and watch as he delivers exactly what they want – advanced weapons, cutting-edge technology, and legitimacy on the global stage. And for Trump, the Gulf represents everything he admires about leadership: decisive action, visible wealth, and quick results. His acceptance of a bling-filled 747 from Qatar as a potential new Air Force One perfectly captures the transactional nature of these relationships. It's diplomacy where everyone gets something tangible, immediately. Yet this approach carries risks. By prioritising commercial wins over comprehensive conflict resolution, Trump may be storing up regional instabilities for later. The Palestinian question, Iranian proxy activities, and the broader Abraham Accords framework all require sustained diplomatic engagement, not just investment forums and arms sales. Still, Trump's Gulf strategy reflects a simple truth. Some relationships work better when everyone acknowledges they're fundamentally transactional. The Crown Prince gets his weapons and technology, Trump gets his investment figures and photo opportunities. After decades of complicated Middle East diplomacy that promised much and delivered little, perhaps there's something refreshingly honest about a president who cuts straight to the deal.
E&E News
13-05-2025
- Business
- E&E News
Trump inks deal with Saudis on minerals, gas, AI
President Donald Trump on Tuesday unveiled a plan for Saudi Arabia to invest $600 billion in U.S. industries — including critical minerals, artificial intelligence and energy — after touching down in Riyadh as part of a broader Middle Eastern tour. Trump, speaking at the U.S.-Saudi Investment Forum, recalled how he had visited the Kingdom of Saudi Arabia in 2017, touted his strong relationship with Crown Prince Mohammed bin Salman; repeatedly blasted the Biden administration's policies; and rattled off his accomplishments, including signing trade deals with the United Kingdom and China. Sitting in the front row near bin Salman was tech billionaire and Tesla CEO Elon Musk, one of Trump's top advisers. 'The United States is the hottest country, with the exception of your country,' Trump said to bin Salman. 'I like you too much.' Advertisement The Trump administration has cast the trip as a way to tap into wealthy countries that are increasingly attracting the president's attention. He's also slated to travel to Qatar and the United Arab Emirates, where other deals are in play.
