I. Intro
I recommend that the Trump Administration expand US-Saudi Arabia non-military trade cooperation. US-Saudi relations today are largely shaped by the antiquated oil-for-security agreement between President Franklin Roosevelt and Saudi Arabia that was established in 1945. Saudi Arabia is a strategic ally to the US that transcends the oil industry, and the US-Saudi relationship is currently challenged by a variety of factors including China’s increasing influence in the Middle East. For instance, in 2022, Xi Jinping visited Saudi Arabia to sign agreements worth over $50 billion geared towards Crown Prince Mohammed bin Salman’s Vision 2030 initiative.
II. Background
Saudi Arabia is a key player in the Middle East – for one, it leads OPEC countries in oil exports. Also, Saudi Arabia and the US share a common adversary, Iran, who funds terrorism throughout the Middle East that targets US and coalition forces. Now that Crown Prince Mohammed bin Salman presents a brand-new vision for his country, it is imperative for the US to engage with him to bolster US-Saudi Arabia private sector engagement and reaffirm our long-term commitment to the bilateral relationship. If the US does not engage with Saudi Arabia in this domain, we risk losing opportunities for American citizens to benefit from entrepreneurial ventures in Saudi Arabia. Also, China’s increasing engagement with Saudi Arabia presents a risk to US grand strategy of countering the pacing threat of China’s ambitions for hegemonic dominance in the region.
III. Recommendations
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Take a practical long-term approach to US-Saudi Arabia engagement. Consider US-Saudi engagement against the backdrop of global competition with China.
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State Department’s Office of Investment Affairs should add a section in its Investment Climate Statements to reflect the policy trends of the Saudi Arabia Government. This will help private investors make decisions based on the trajectory of Saudi Arabia reform.
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State Department officials should work jointly with the Saudi Arabia government to address the concerns that private businesses raise. They should survey Saudi Arabia’s economic landscape relative to the ones offered by the other Gulf countries. Then, US officials need to raise these concerns and work with the Saudi Arabia government to map out a plan to make them more competitive to attract American investors, providing win-win opportunities for citizens of both countries.
IV. Conclusion
Despite closer Saudi Arabia-China ties, there is still an opportunity for deeper US engagement. The US has recently sought to broker an agreement between Saudi Arabia and Israel, as well as create an economic corridor from India to Europe via rail through Saudi Arabia – deals that go beyond previous US-Saudi Arabia engagement. The Crown Prince welcomes further engagement from the US in realizing his country’s vision, and President Trump’s private sector background, support of American businesses, and pragmatic approach to protecting American interests overseas makes this a great opportunity for the US to implement these policy recommendations to assure American businesses that they are supported by the US government in their pursuit to seize the economic opportunities in Saudi Arabia.