Beyond Oil: The Expanding Economic Relations Between the U.S. and Saudi Arabia

While powering forward through the cornucopia of Vision 2030 objectives, Saudi Arabia has made significant strides toward modernizing and diversifying its financial markets, ultimately reducing the reliance on oil.
A healthy portion of the progress is due to the successful collaboration with the United States in a variety of sectors, notwithstanding the KSA being one of the world’s most robust providers of oil and the United States being a major trading partner, consumer, and energy producer.
The two nations have become linked in other areas, such as the cooperative relationship between the U.S. Securities and Exchange Commission (SEC) and the CMA, financial institution partnerships, technical assistance, and training and capacity building. The exchange of expertise and knowledge has helped Saudi Arabia to develop a more robust, diversified, and internationally integrated financial sector. According to the United States Trade Representative, billions of dollars are regularly exchanged between the two countries in goods and services; an estimated $46.6 billion was exchanged back in 2022, and 2024 landed somewhere around the $70 billion mark.
Through the duration of this strong partnership, the KSA has made significant investments within the United States, such as real estate purchases of prime commercial properties and luxury residential complexes made in cities such as New York, Los Angeles, and San Francisco, substantial investments in U.S. technology companies via the PIF, and increased holdings of U.S. Treasury bonds, private equity funds, venture capital firms, and other financial assets.

On the other side of the coin, U.S. foreign direct investment (FDI) in Saudi Arabia has greatly influenced the country’s economy, particularly in petrochemicals, aerospace, and healthcare, offering significant benefits, which include economic growth, job creation, and technological progress. As the country progresses toward moving away from oil dependency, these investments will continue to be important in driving development across different sectors. Among the many avenues explored between the two countries that strengthen mutually beneficial ties, the U.S.-Saudi defense trade partnership is a major contributor, giving work to defense industrial workers in the U.S.
This has created a more robust and secure infrastructure, transfers of technological advancements, and training programs across the diverse areas of expertise within the sector. As artificial intelligence becomes more advanced worldwide, the U.S. and the KSA have worked together to harness these advancements, along with cybersecurity and smart city concepts, such as Saudi Arabia’s NEOM, where U.S. firms are key contributors to the project. Through recent years, the two nations have strengthened their collaboration in the digital economy, cloud computing, and 5G technologies, promoting innovation and generating new opportunities for both countries.
Saudi Arabia is modernizing its financial markets with support from the U.S., including collaboration between the SEC and Saudi Capital Market Authority to enhance regulatory frameworks. U.S. banks are improving risk management and product offerings for Saudi banks, while tech firms are upgrading the trading systems of the Saudi Stock Exchange (Tadawul). American institutions also manage the Public Investment Fund’s investments, diversifying its portfolio and promoting economic ties. This partnership boosts market efficiency, attracts foreign investment, and fosters innovation, which is crucial in Saudi Arabia’s financial modernization.

Transitioning to the tourism sector, the relaxation of tourism restrictions in Saudi Arabia presents abundant opportunities for U.S. hospitality, event management, and entertainment companies. By collaborating with local Saudi enterprises and utilizing their knowledge, U.S. firms can access this expanding market, assist in developing Saudi Arabia’s tourism industry, and strengthen interpersonal, country-to-country connections. Moving to education, The U.S. and Saudi Arabia share a strong educational partnership aimed at building a skilled workforce for the global economy.
Thousands of Saudi students study in the U.S. yearly, supported by scholarships like the King Abdullah Scholarship Program. Training programs in Saudi Arabia also provide vocational training, professional development, and English instruction. Collaborations between U.S. and Saudi universities lead to joint research, innovative courses, and faculty exchanges, enriching education and fostering cultural understanding.

To conclude, robust economic connections can significantly reduce geopolitical tensions, strengthen nations, and encourage diplomacy, demonstrable through the actions touched on throughout this article. They foster interdependence, enhance communication, create mutual prosperity, boost soft power, and align with long-term strategic goals (such as Saudi’s Vision 2030 Program). Although they are not a cure-all to every problem a country may face, they have served as a vital instrument for cultivating a more peaceful and collaborative global landscape between the United States and the Kingdom of Saudi Arabia.