Saudi-US Business Relations Enter a New Phase of Strength
RIYADH — Steve Lutes, the US Chamber of Commerce’s vice president for Middle East affairs, recently indicated that Saudi Arabia and the United States are embarking on a new chapter of economic collaboration. This alliance, he noted, will be built on technology, creativity, and investments designed to last.
Before Crown Prince Mohammed bin Salman’s trip to the United States, Lutes characterized the two nations’ relationship as strong. He highlighted its enduring nature, noting its ability to withstand global economic fluctuations and political transformations.
Vision 2030 Drives US Investment and Collaboration
With Saudi Arabia’s Vision 2030 reform initiative approaching its tenth year, American companies are ramping up their involvement in many fields. These include artificial intelligence, biotechnology, cloud computing, and advanced manufacturing. Lutes said that these changes had “unlocked unprecedented commercial opportunities for US companies.”
In 2023, the exchange of goods and services between the two countries surpassed $35 billion, solidifying the United States’ position as a key economic partner for Saudi Arabia. Beyond oil and defense, Lutes noted, “Our collaboration now encompasses digital transformation, renewable energy, and the industries of tomorrow.”
Technology and AI at the Core of New Partnerships
American tech companies are making significant strides in the kingdom. Google Cloud, Oracle, and Amazon Web Services have all established local data centers, a move that aligns with Riyadh’s goal of becoming a key regional digital center.
Lutes highlighted partnerships like HUMAIN and Qualcomm’s AI deployment as illustrations of what’s achievable through high-tech collaboration. “We’re looking to place AI, data infrastructure, and cutting-edge technologies at the core of our future investments,” he stated.
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Expanding Beyond Oil and Defense
Energy still fuels the Saudi-US economic engine, but the relationship is evolving. Data, innovation, and renewable energy projects are now key players. The NEOM Green Hydrogen Project, a $8.4 billion endeavor backed by American engineering companies, illustrates the evolving nature of energy collaborations, which increasingly encompass green and sustainable technology.
Lutes stressed that “energy and defense remain fundamental,” albeit both are undergoing significant evolution, becoming more imaginative and strategic. He pointed to new collaborative efforts in cybersecurity, renewable energy, and bolstering supply chain resilience.
US Firms Deepen Presence in Saudi Arabia
US businesses are pouring resources into domestic manufacturing and essential facilities. Lucid Motors, with the Saudi Public Investment Fund holding the controlling stake, is increasing production at its $3.4 billion electric vehicle plant located in King Abdullah Economic City. Microsoft, in the meantime, revealed significant advancements in its Saudi data center location, with operations slated to begin in 2026.
These initiatives represent Saudi Arabia’s deliberate economic diversification, moving away from oil and gas and toward high-value industries that use artificial intelligence, robots, and advanced manufacturing.
Strengthening Policy Cooperation and Private Sector Ties
Lutes attributed the partnership’s achievements to Saudi Arabia’s institutional changes and the collaborative policymaking style embraced within the framework of Vision 2030. He commended the efforts of Saudi ministries and economic agencies, highlighting their role in establishing a “deliberative and consultative policy process.” This approach, he noted, had successfully attracted significant investment from American companies.
American direct investment in Saudi Arabia has seen significant growth. The US-Saudi Business Council reports that the stock has more than quadrupled since 2018, hitting $14 billion by 2023. Lutes indicated that the forthcoming visit will build upon these advancements. Discussions are underway about new frameworks for bilateral economic development, extending through 2035.
Major Events Fostering New Paths for Collaboration
Expo 2030 and the FIFA World Cup 2034 are just around the corner, and Saudi Arabia’s schedule of major events is creating significant openings for American involvement. This includes potential in infrastructure development, innovative technologies, and the tourist sector.
“We’re looking to brainstorm innovative ways for American businesses to get involved in these events,” Lutes explained. “That means more than just construction; we’re also talking about digital ticketing, hospitality services, and transportation.” He also emphasized the Saudi Tourism Development Fund’s eagerness to collaborate with American entertainment and real estate companies in the lead-up to Expo 2030.
A Partnership Built for the Future
As the world shifts toward a multipolar economic landscape, the United States is positioning itself to be Saudi Arabia’s preferred collaborator in its ongoing evolution. The partnership is expanding, moving past the usual trade agreements into new territories like cloud computing and hydrogen power.
For Lutes, the point is simple: “Despite the political landscape, our business ties are a bedrock of stability.” The alliance between Saudi Arabia and the United States isn’t just robust; it’s designed for the long haul.
