Al Riyadh Newspaper: 14 May 2025: Saudi – American Relations, US Presidential Visit, US Economic and Investment Partnerships, AI Technology

These texts from the Alriyadh newspaper focus on the Saudi-American relationship, highlighting its depth through a significant US presidential visit and expansive economic and investment partnerships. They emphasize the strategic shift towards a knowledge and innovation-based economy in Saudi Arabia, particularly in areas like technology, renewable energy, and artificial intelligence, often in collaboration with major American companies. The sources also cover domestic topics like urban development, cultural events, and sports, demonstrating broader societal advancements and initiatives within the Kingdom.

Saudi-US Strategic Partnership: History and Future

The sources provide extensive information regarding Saudi-US relations, highlighting their historical depth, strategic importance, and current developments across various sectors.

The relationship between the two countries has a long history, extending over many years. A key early event in the maturing of Arab-American relations was the meeting between King Abdulaziz bin Abdulrahman Al Saud and President Roosevelt in 1945. Multiple visits by American presidents to Arab and Gulf countries over the years underscore the significant importance the United States places on its interests in the region.

Recently, the visit of US President Donald Trump to the Kingdom of Saudi Arabia is described as carrying deep significance in diplomatic norms. This visit indicates a clear sign of the relationship’s depth and the beginning of a new strategic phase. It serves to reconfirm the robust relationship between the two countries, which has spanned over eight decades and involved close cooperation in various fields. The visit also reaffirms the Kingdom’s standing as an influential regional power with a principal role in shaping the geopolitical landscape in the region. Its timing is sensitive, occurring during a period of increasing Saudi diplomatic presence on the international stage, marked by hosting pivotal discussions such as the US-Russian dialogue, reflecting the Kingdom’s balanced approach in bringing together the perspectives of major global powers. The visit comes at a crucial time amidst major regional and international transformations.

During the visit, the Saudi-American summit was held, co-chaired by HRH Prince Mohammed bin Salman, Crown Prince and Prime Minister, and HE President Donald J. Trump, President of the United States of America, at Al Yamamah Palace in Riyadh. The summit involved a review of bilateral relations, efforts to enhance the strategic partnership across various aspects, and discussions on regional and international developments and issues of common interest, including efforts to achieve security and stability. An official reception ceremony for President Trump at Al Yamamah Palace included a procession accompanied by Arabian horses, trumpet fanfares, and the national anthems of both countries, along with a 21-gun salute upon his arrival.

A significant outcome of the visit and summit was the signing of a strategic economic partnership document between the government of the Kingdom of Saudi Arabia and the government of the United States of America. Beyond this key document, several other bilateral agreements and memorandums of cooperation were exchanged and announced. These covered a wide range of areas, demonstrating the multi-faceted nature of the cooperation:

• Energy: A memorandum of understanding was signed between the Ministry of Energy in Saudi Arabia and the Department of Energy in the United States. The Saudi-American partnership in the energy sector has seen a notable shift towards clean and renewable energy. Saudi Arabia has entered into agreements with US companies like ExxonMobil and Chevron this year to develop projects in solar and wind energy, backed by substantial investments. These collaborations are part of Saudi Arabia’s strategy to diversify energy sources and lessen dependence on traditional oil, aligning with Vision 2030.
• Defense: An agreement was reached concerning the updating and development of the capabilities of the Saudi armed forces through future defense capabilities.
• Mining: A memorandum of cooperation was agreed upon in the field of mining, mineral resources, and metallic wealth between the Ministry of Industry and Mineral Resources in Saudi Arabia and the Department of Energy in the United States.
• National Guard: A letter of intent was signed for comprehensive support, including training, ammunition, maintenance, and system updates for the Land and Air Systems of the National Guard Ministry.
• Law Enforcement: A memorandum of understanding was established between the International Partnerships programs at the Saudi Ministry of Interior and the Federal Bureau of Investigation (FBI).
• Air Transport: An agreement to modify the air transport protocol between the two governments was signed.
• Medical Research: A memorandum of cooperation was agreed upon between the National Institute for Health Research in Saudi Arabia and the National Institute of Allergy and Infectious Diseases in the United States in the area of medical research focusing on infectious diseases.
• Culture and Conservation: Cooperation agreements were made between the Royal Commission for AlUla Governorate and the Smithsonian Institution, specifically involving the National Zoo and Conservation Biology Institute for environmental preservation and the National Museum.

The economic dimension is a significant component of the relationship. The “Saudi-American Investment Forum” was held, intended to lay the groundwork for a new economic era. The US Treasury Secretary expressed optimism about the future of trade between the two countries, noting that the signed agreements are expected to contribute to tangible economic improvement. In January 2025, the Crown Prince announced a joint investment plan with the United States valued at approximately $600 billion over the coming years, with potential for expansion if suitable opportunities arise. These investments are anticipated to target sectors such as renewable energy, infrastructure, artificial intelligence, and various economic projects. The bilateral trade volume in 2024 was $23 billion.

Technology and innovation are central to Saudi-American relations. The White House views the Kingdom as a global participant in shaping the future of Artificial Intelligence. Major American technology companies like Google, Microsoft, Apple, and Amazon have a strong presence and are active in the Saudi market. Google has invested in cloud infrastructure and digital education initiatives. Microsoft has invested in training Saudi talent and expanding cloud capabilities. Lucid Motors, an American electric car manufacturer, has established a factory in King Abdullah Economic City. These investments are seen as contributing to knowledge transfer, technology localization, and fostering innovation. Saudi Arabia is not merely adopting AI technologies but is working to develop them and influence their global regulatory and ethical frameworks. Partnerships with US tech companies have significantly increased the number of skilled Saudi digital professionals.

Politically and securely, the relationship is described as a strategic partnership. The recent summit provided a platform for coordinating Gulf positions on major international issues, with the aim of unifying efforts to address challenges. Discussions covered regional and international developments and efforts to ensure security and stability. Gulf security is emphasized as an indivisible part of international security. Military and intelligence cooperation is reportedly developing, including information sharing and joint efforts against terrorism and its financing. The summit highlights the ability of Gulf states to balance relations with major powers while maintaining their partnerships. Discussions may also involve regional conflicts like the Israeli-Palestinian issue, where Saudi Arabia links any normalization with Israel to ending the war in Gaza and establishing an independent Palestinian state. Choosing Saudi Arabia as President Trump’s first foreign destination after taking office is seen as a clear indication of the Kingdom’s prominent regional and international standing and the significant influence of the GCC system. Gulf diplomacy, particularly that of Saudi Arabia, is praised for its success in maintaining strategic partnerships and balancing national interests with international alliances. Saudi Arabia is perceived as a committed ally that utilizes its capabilities to resolve conflicts and promote peace. The collective stance of Gulf leaders suggests that no regional solution or agreement will succeed without their involvement.

Saudi Arabia Vision 2030: Transformation and Partnerships

Based on the sources, Vision 2030 is presented as the overarching strategic framework guiding Saudi Arabia’s ambitious national transformation. It is described as a plan for the Kingdom to act as a purposeful global player, aiming to reshape its national economy through innovation and technology.

Key aspects and goals of Vision 2030 mentioned in the sources include:

• Economic Diversification: A primary goal is to diversify the Saudi economy and lessen reliance on oil. This involves opening up new investment horizons in various vital sectors.
• High-Impact Investments: The vision encourages openness to qualitative, high-impact investments across sectors such as traditional and renewable energy, advanced technologies and industries, artificial intelligence (AI), tourism, health, biotech, and logistics. A major joint investment plan with the United States valued at around $600 billion over the coming years is part of Vision 2030, with potential for expansion.
• Digital Transformation and Technology: Digital transformation is highlighted as one of the fundamental pillars of Vision 2030. This involves accelerating digital transformation, enabling technological infrastructure, building a complete digital economy, and developing modern digital infrastructure (including 5G networks, cloud computing, IoT, and smart city systems). The aim is to build a digital community based on innovation. Saudi Arabia seeks not only to adopt AI technologies but to develop them and contribute to shaping their global regulatory and ethical frameworks.
• Human Capital Development and Job Creation: Vision 2030 aims to provide job opportunities for Saudi citizens and increase their participation in the labor market. The Saudization of jobs in the private sector aligns with Vision 2030. Efforts are made to accelerate Saudization, achieve job sustainability, and build an economic system based on the participation of Saudi citizens. The Kingdom is committed to empowering women in future fields. Investments in training and building digital capabilities, in partnership with US companies, have significantly increased the number of skilled Saudi digital professionals.
• Quality of Life: Vision 2030 aims to build a vibrant society with a high quality of life. This includes improving the quality of life and services, enhancing urban sustainability, and developing infrastructure. The transformation of the healthcare sector and the focus on innovation and quality within it also align with Vision 2030’s quality of life goals.
• Tourism Growth: Unprecedented development in the tourism sector, including exceeding 100 million visitors, is noted as an achievement aligned with Vision 2030’s targets.
• Sports Sector Empowerment: Support for the sports sector, including the Saudi Pro League, is linked to achieving Vision 2030 goals. Hosting major international sports events, such as world championships in billiards and snooker, is part of the Ministry of Sport’s continuous efforts to enhance its global presence in sports events, aligning with Vision 2030 to empower the sports sector and expand its impact.
• Environmental Sustainability: Environmental preservation and the investment of natural resources are also mentioned as aligning with Vision 2030’s sustainability goals.

Vision 2030 has significantly influenced Saudi-US relations, giving the partnership a new dimension based on economic diversification. The United States is identified as one of the largest partners of Vision 2030. The visit of US President Donald Trump to Saudi Arabia is seen as reflecting the depth of relations, particularly in light of the large economic and financial reforms under Vision 2030. The strategic partnership between the two countries, which includes economic, security, military, and technical cooperation, is described as contributing to achieving Vision 2030 goals. The relationship is seen as transforming from one primarily based on oil and arms to a partnership focused on innovation and knowledge, achieving Vision 2030’s goals and strengthening Saudi Arabia’s position as a global economic center.

The sources indicate that Vision 2030 has already achieved significant progress and targets. Investments by major American companies reflect increasing international confidence in the business environment and the seriousness of the digital transformation being undertaken through Vision 2030.

Saudi Vision 2030: Technology and AI Pillars

Based on the sources and our conversation, technology and Artificial Intelligence (AI) are highlighted as fundamental pillars within the strategic framework of Saudi Vision 2030. The vision aims for Saudi Arabia to reshape its national economy through innovation and technology.

Key aspects discussed in the sources include:

• Digital Transformation and Infrastructure: Accelerating digital transformation is a core objective . This involves enabling technological infrastructure and developing modern digital infrastructure, including 5G networks, cloud computing, IoT, and smart city systems . The goal is to build a complete digital economy and a digital community based on innovation .
• AI Ambition: Saudi Arabia seeks not only to adopt AI technologies but also to develop them and contribute to shaping their global regulatory and ethical frameworks. This indicates a proactive approach to AI development and governance on an international level. The White House sees Saudi Arabia as a global player in shaping the future of AI. David Sachs, Senior Advisor to the White House for AI and Digital Currencies, praised Saudi efforts in building an innovative tech ecosystem and views the partnership with the Kingdom as enabling the building of the future of AI and global innovation, stating that Saudi Arabia has become a key partner for the United States in shaping the future of the AI era.
• Investment in Technology and AI: Vision 2030 encourages high-impact investments in sectors like advanced technologies and industries, and artificial intelligence (AI) . Saudi Arabia announced plans to invest over $100 billion in AI by 2025, aiming to be a leader among countries seeking to leverage this technology to improve economic performance and raise productivity across various sectors. NEOM city is highlighted as one of the most prominent projects, which will rely entirely on AI in its planning and development.
• Partnerships with US Tech Companies: The strategic partnership between Saudi Arabia and the United States includes technical cooperation contributing to achieving Vision 2030 goals . Technology is a major axis in Saudi-US relations. Leading US tech companies like Google, Microsoft, and Apple have entered the Saudi market, reflecting increasing international confidence in the business environment and the seriousness of the digital transformation .
• Google has contributed to developing cloud infrastructure through investment projects in data centers, enhancing the Kingdom’s readiness to host AI and cloud computing solutions. Google opened its first cloud region in the Kingdom, aiding institutions in relying on strong and secure digital infrastructure.
• Microsoft has played a key role in supporting digital transformation for governmental and private institutions through business solutions and cloud platforms. Microsoft invested in training Saudi talent and expanding cloud computing capabilities.
• Saudi Arabia has also signed agreements with US companies like Google and IBM to develop cloud and AI technologies within the Kingdom.
• The Kingdom invested in training and building digital capabilities in partnership with US companies such as Google, Apple, and Amazon, which has significantly increased the number of skilled Saudi digital professionals to over 381,000.
• Innovation and Specific Technological Advancements: The vision encourages openness to qualitative, high-impact investments in advanced technologies and industries . The establishment of the first Lucid Motors factory outside the United States in King Abdullah Economic City is seen as supporting innovation in the energy sector and linking industrial innovation with environmental sustainability. The adoption of “Hybrid Multicloud Computing” is discussed as a concept providing unprecedented flexibility for rapid innovation and adaptation, presenting a strategy to bridge the gap between theoretical potential and realized results in cloud adoption, especially for operating AI applications effectively. Dr. Sulaiman Al Habib Medical Group launched the “AuxQ” robotic laboratory system, described as the first of its kind, enhancing accuracy, quality, and speed in laboratory tasks without human intervention, aligning with Vision 2030 targets and the Health Transformation Program.
• Human Capital Development: Building digital capabilities and providing job opportunities for Saudi citizens in the technology sector are integral to Vision 2030 . Investments in training have increased the number of skilled Saudi digital professionals. The Kingdom is committed to empowering women in future fields, including technology. A Saudi study highlighted that technological applications can develop skills, particularly in sports, through dedicated training programs.

In summary, Vision 2030 places technology and AI at the forefront of Saudi Arabia’s economic transformation, focusing on infrastructure development, large-scale investments, fostering innovation, developing domestic capabilities, and engaging in strategic international partnerships to position the Kingdom as a key player in the global digital and AI landscape.

Saudi-US Economic Cooperation and Vision 2030

Based on the sources and our conversation, economic cooperation, particularly between Saudi Arabia and the United States, is a central and strategic aspect of their relationship, evolving significantly, especially in the context of Saudi Vision 2030.

Here’s a discussion of economic cooperation drawing from the sources:

• Overarching Strategic Partnership: The relationship between Riyadh and Washington is described as an advanced strategic partnership. The visit by the US President carried numerous understandings and agreements between the two countries, serving their mutual interests. This visit is considered a pivotal historical station in the path of Saudi-American relations, establishing a new phase of strategic cooperation. The summit between the Saudi Crown Prince and the US President reviewed bilateral relations and coordinating efforts to enhance aspects of the strategic partnership between the two friendly countries in various fields. This strategic economic partnership was formalized through the signing of a document by the Saudi Crown Prince and the US President.
• Evolution of the Relationship: The relationship is noted to have transformed from one primarily based on oil to a partnership focused on innovation and knowledge, contributing to achieving Vision 2030 goals and strengthening Saudi Arabia’s position as a global economic center [inferred from the connection between Vision 2030 and economic transformation, 59]. The economic cooperation between Saudi Arabia and America during the period from 2023 to 2025 was not merely an extension of historical relations, but a pivotal station in shaping a modern partnership based on innovation, sustainability, and mutual interests. This relationship has proven its strength over decades in facing regional and global crises.
• Significant Joint Investment Plans: A major joint investment plan with the United States valued at around $600 billion over the coming years was announced by the Saudi Crown Prince in January 2025. There is potential for expansion of this plan if appropriate opportunities arise. These investments are expected to focus on several sectors, including renewable energy, infrastructure, artificial intelligence, and economic projects between the two countries.
• Trade Volume and Balance: In 2023, the trade volume between Saudi Arabia and the United States reached about $24.5 billion, marking a 5% increase from the previous year. This increase reflects the continued strengthening of economic partnerships between the two countries. Saudi oil exports topped the list of Saudi imports from the US, alongside other products like petrochemicals. In 2024, trade between the two countries saw a jump to $25.6 billion, reflecting continuous improvement in bilateral trade, including non-oil sectors such as chemical materials, industrial equipment, and cars. Saudi Arabia also recorded a trade surplus with the United States in the same year, confirming its policy of economic diversification.
• US Investments and Company Presence: American companies continue to play a significant role in investments. More than 300 American companies operate in the Kingdom, employing over 67,000 employees, many of whom are Saudi cadres. These investments reflect diversification across sectors, from manufacturing and advanced technologies to energy services and trade. Saudi Arabia continues to attract foreign direct investment with a special focus on renewable energy, technology, and artificial intelligence. The entry of major American companies like Google, Microsoft, and Apple into the Saudi market reflects increasing international confidence in the business environment and the seriousness of the digital transformation underway through Vision 2030.
• Google has contributed to developing cloud infrastructure through investment projects in data centers, enhancing the Kingdom’s readiness to host AI and cloud computing solutions. They also opened their first cloud region in the Kingdom, helping institutions rely on strong and secure digital infrastructure.
• Microsoft has played a key role in supporting digital transformation for governmental and private institutions through business solutions and cloud platforms. Microsoft invested in training Saudi talent and expanding cloud computing capabilities.
• Agreements have been signed with US companies like Google and IBM to develop cloud and AI technologies within the Kingdom.
• The establishment of the first Lucid Motors factory outside the United States in King Abdullah Economic City supports innovation in the energy sector and links industrial innovation with environmental sustainability.
• Focus on Diversification and Innovation: Economic cooperation is increasingly geared towards diversifying the Saudi economy away from oil dependency. This includes developing clean and renewable energy sources. Partnerships with US companies like ExxonMobil and Chevron have been made this year to develop solar and wind energy projects with significant investments. This aligns with Vision 2030’s focus on environmental sustainability. The Kingdom’s policy of economic diversification was highlighted by the trade surplus with the US in non-oil sectors. Economic cooperation is seen as a model for strategic long-term integration. The Saudi economy is described as offering attractive ground for foreign investors, especially from the United States, due to its strength, developed infrastructure, and Vision 2030.
• Human Capital Development: Investments in training and building digital capabilities, in partnership with US companies such as Google, Apple, and Amazon, have significantly increased the number of skilled Saudi digital professionals.
• Gulf Economic Integration: Economic transformation is also happening at the Gulf level, moving from over-reliance on oil to building diversified economies based on innovation and knowledge. Competition is extending to areas like AI, supply chains, digital transformation, and the green economy. There is an emphasis on the importance of Gulf coordination in launching integrative projects, such as establishing joint digital infrastructure, financing investment funds for startups, and building unified educational and training platforms that meet future labor market needs. The renewable energy sector is a strategic opportunity to enhance Gulf cooperation, especially given the huge potential for solar and wind energy generation.
• Challenges and Opportunities: Despite successes, challenges remain in economic relations, such as fluctuations in global oil prices and the impacts of global economic changes on markets. However, the opportunities offered by Vision 2030 and the strategic partnerships it facilitates point to a bright future for economic relations between the two countries.

In conclusion, economic cooperation is a cornerstone of the Saudi-US relationship, driven by Vision 2030’s ambitious goals of diversification, technological advancement, and innovation. Large-scale joint investment plans, increasing trade in non-oil sectors, and the significant presence and investment of US tech and energy companies highlight the depth and strategic nature of this partnership, aiming to create a more resilient and diversified economy.

Gulf States, US, and Regional Stability

Based on the sources, regional stability is a central and pressing concern for Saudi Arabia, the United States, and the Gulf countries, and it is a significant focus of their strategic partnerships and cooperation. The relationship between Riyadh and Washington is described as an advanced strategic partnership aimed at enhancing cooperation in various fields. This partnership, formalized through a signed document on the strategic economic partnership, is consistently linked to the objective of creating stability (“شراكة تصنع االستقرار” – Partnership creates stability).

The sources highlight that the current period is a critical moment marked by major transformations at both regional and international levels. The geopolitical complexity, including rising global economic competition and the race for influence in areas like the Red Sea and Indian Ocean, underscores the necessity of American-Gulf coordination. The summits and meetings between leaders come at a delicate time due to the confluence of factors, starting with the tense situation in the region stemming from ongoing crises.

Achieving stability in the region (“إرضاء اضتقرار يف املنطقة”) is explicitly stated as a key objective of the cooperation between the US and the Gulf states. Furthermore, strengthening strategic partnerships with the United States serves the interests of the Gulf states and contributes to the region’s stability (“يضهم يف اضتقرار املنطقة”).

Saudi Arabia is seen as a central player in the equation of regional stability (“مركزية على التاأكيد لتعيد التوقيت هذا يف الإقليمي الضتقرار معادلت يف اخلليج مركزية على”). The visit of the US President to Saudi Arabia as his first official destination after taking office is seen as a clear reflection of the Kingdom’s regional and international standing and its significant influence. The sources suggest that Saudi Arabia, along with the other Gulf states, has moved from a reactive role to a more proactive and influential one, capable of shaping policies on the international stage. Their unified stance and coordination in facing regional and international challenges (“توحيد الجهود لمواجهة التحديات”) are crucial.

The need for coordination extends across political, security, and economic spheres. Key challenges in the region that require unified efforts and coordination include:

• The ongoing crises in Gaza, Yemen, and Syria.
• The Israeli-Palestinian conflict, with a particular focus on ending what is happening in Gaza.
• The need for rebuilding Syria and stopping the civil war in Sudan.
• Addressing Houthi threats in Yemen.
• Following up on the Iranian nuclear file.
• The situation in the Middle East, the Red Sea, and the Gaza war.
• Regional security issues and facing threats like terrorism.
• Internal conflict in Libya over economic resources.

The visit by the US President is anticipated to be a historical turning point in bilateral relations between Riyadh and Washington, especially concerning the situation in the Middle East, the Red Sea, and the Gaza war. Discussions during such high-level visits often involve security and political cooperation between the two countries.

Beyond the immediate Gulf region, Saudi Arabia also plays a role in efforts towards broader regional stability. For instance, the Kingdom engaged in efforts to de-escalate tensions, stop escalation, and end ongoing military confrontations between Pakistan and India, working to resolve differences through dialogue and channels. This demonstrates a role in stability beyond its immediate neighborhood.

In essence, the sources portray regional stability not just as a backdrop, but as a direct product of the strategic partnership and multifaceted cooperation, particularly between Saudi Arabia and the United States, alongside the coordinated efforts of the Gulf states. They aim to achieve stability by unifying stances on key issues, enhancing security cooperation, and working towards resolving regional conflicts through dialogue and concerted action. The message from the Gulf leaders is clear: no solutions or agreements in the region will succeed without their involvement and acceptance of just solutions aimed at the stability of the entire region.

By Amjad Izhar
Contact: amjad.izhar@gmail.com
https://amjadizhar.blog

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