Saudi Arabia Pledges $600 Billion in U.S. Investments, Strengthening Energy and Security Ties

Saudi Arabia’s Crown Prince Mohammed bin Salman announced plans to invest $600 billion in the U.S. over four years, deepening bilateral cooperation on energy, security, and countering Iran, according to a January 23 phone call with President Donald Trump.

The pledge follows Trump’s suggestion of returning to Saudi Arabia as his first foreign trip, reviving a relationship rooted in mutual economic and geopolitical interests.

Investment Scope: The $600 billion commitment includes trade expansion and direct investments, though specifics remain unclear.

Analysts note it would require $150 billion annually—equivalent to 14% of Saudi Arabia’s GDP—and faces skepticism due to the kingdom’s reduced oil revenues and focus on domestic projects like NEOM.

Oil Diversification: While the U.S. has reduced reliance on Saudi oil, the kingdom aims to collaborate on AI-driven energy solutions and non-oil sectors (tech, manufacturing).

Countering Iran: The U.S. and Saudi Arabia seek to isolate Iran-linked proxies (e.g., Hezbollah, Houthis), with Washington redesignating the Houthis as terrorists.

Trump’s Role: The former president hinted at leveraging Saudi investments to revive U.S. manufacturing and warned of tariffs against nations undermining American interests.

Historical Precedent: Trump’s 2017 Saudi trip secured a $450 billion arms deal, though critics argue the new pledge is very optimistic given Saudi Arabia’s 37% drop in international investments in 2024.

Domestic Priorities: Saudi Arabia’s Vision 2030 and 2034 FIFA World Cup preparations (stadiums, infrastructure) compete for funding, raising doubts about reallocating capital abroad.

Trump’s Push for More: The president suggested scaling the pledge to $1 trillion, though experts call this unrealistic without a surge in oil prices.

The White House has not confirmed the deal, and implementation hinges on Saudi Arabia’s ability to balance domestic and foreign commitments.

Analysts project a $100–200 billion range as more feasible, citing oil revenue constraints and the kingdom’s sovereign wealth fund’s reduced international exposure