Saudi Arabia Plans to Invest $600 Billion in the United States Over the Next Four Years

What Happened?

Crown Prince Mohamad Bin Salman announced that Saudi Arabia plans to invest over half a trillion dollars in the United States over the next four years.

However, the statement didn’t specify what exactly the new investments would be.

The announcement was initially reported by the Saudi Press Agency, and Mr. Salman’s comments were made during a phone call with President Trump earlier the same day.

Specifically, the statement said ‘The crown prince affirmed the kingdom’s intention to broaden its investments and trade with the United States over the next four years, in the amount of $600 billion, and potentially beyond that.’

The White House acknowledged the call, adding:

‘[The] two leaders discussed efforts to bring stability to the Middle East, bolster regional security and combat terrorism. Additionally, they discussed the kingdom of Saudi Arabia’s international economic ambitions over the next four years as well as trade and other opportunities to increase the mutual prosperity of the United States and the kingdom of Saudi Arabia.’

Why it Matters

Saudi Arabia remains a key U.S. ally in the Middle East, though it is unclear what Crown Prince Mohammed Bin Salman expects in return for the promised investments.

The Saudis likely want to continue receiving American weapons and defense systems, though there was no reported mention of that during the initial call with President Trump. Mr. Trump indicated he might make his first foreign trip in office to Saudi Arabia as he did in 2017.

According to Victoria Bisset of the Washington Post:

‘Trump said he believed Saudi Arabia will end up being in the Abraham Accords — a series of agreements signed in 2020 to normalize relations between Israel and four Arab states. Trump did not give a timeline, but said he believed it could happen soon.’

With Iran’s proxies humiliated by Israel during the Gaza War, the Saudis likely see an opportunity to expand their influence in the Middle East at the expense of their chief rival, Iran.

After Gaza, Iran has been the biggest loser in the recent conflict, which showcased Israeli military superiority over Hezbollah, HAMAS, and the Houthis, all of whom are Iranian proxies.

How it Affects You

A major factor that will shape U.S. Saudi relations in the immediate future is the war in Gaza.

If the cease fire in Gaza holds and brings a long term end to the fighting, Saudi Arabia will have more flexibility to make deals with the U.S.

Israel’s military victories against Gaza are perceived negatively by much of the Saudi public, and if the conflict resumes Saudi leaders will again be under pressure to distance themselves from Israel rather than normalize relations, which was the goal of the Abraham Accords.