The Saudi-US summit saw the signing of 145 agreements totalling USD 300 bn, with the rest of the USD 600 bn package to be announced in the coming months. The Kingdom is set to eventually round out the figure to USD 1 tn in a second phase, Crown Prince Mohammed bin Salman said in his speech at the Saudi-US Business Forum.

By the numbers: Some 40% of the Public Investment Fund’s global investments are already in the US, while 1.3k US companies now operate in Saudi Arabia, making up nearly a quarter of foreign investment, with 200 setting up regional headquarters in the Kingdom, MbS added.

The White House was out with a fact sheet outlining details of the “first” investments to come out of the forum, spanning infrastructure, energy, technology, and defense.

PIF to order 30 Boeing jets for AviLease: The PIF placed an order for 20 Boeing 737-8 jets for its aviation leasing firm AviLease, with option for 10 more, according to a statement from Boeing. The White House fact sheet put the total value of the purchases at USD 4.8 bn.

On the tech front, Riyadh-based DataVolt plans to invest USD 20 bn in US-based AI data centers and energy infrastructure. Additional commitments from companies including Google, Oracle, Salesforce, AMD, and Uber total USD 80 bn in joint technology investments.

In infrastructure, US firms Hill International, Jacobs, Parsons, and AECOM are engaged in projects including King Salman International Airport, King Salman Park, The Vault, Qiddiya City, and more, generating an estimated USD 2 bn in US service exports.

Additional investments include USD 5.8 bn from Shamekh IV Solutions in US healthcare, with plans for a high-capacity IV fluid facility in Michigan. The Kingdom will also purchase USD 14.2 bn in GE Vernova gas turbines.

Sector-specific funds were also established, with a “strong emphasis” on deploying capital into the US, including the Energy Investment Fund, valued at USD 5 bn, and the Enfield Sports Global Sports Fund, valued at USD 4 bn.

ALSO FROM THE SAUDI-US BUSINESS FORUM-

BWI signs USD 15 bn agreements: Global investment platform Burkhan World Investments signed three MoUs in critical minerals, AI, semiconductors and defense tech worth USD 15 bn during the forum, the US-based company said in a statement.

#1- A critical minerals USD 9 bn MoU with Saudi-based Grand Mines Mining will see the launch of a new company for mining investment and operations in the Kingdom. The newly-launched company will focus on exploration, development and processing of lithium, cobalt and rare earth minerals.

#2- A USD 1 bn MoU with Watad Digital will launch an investment platform for AI tech, chip design, and high-performance computing, geared for supporting local startups and global R&D partnerships.

#3- An MoU with Riyadh-based Advanced Aircraft Technology — as well as unnamed global private sector partners — will launch a USD 5 bn dual purpose defense innovation fund dubbed BMI Nexus, aiming at co-investing AI-powered defense systems, autonomy, advanced sensors, cybersecurity, space technologies, and next-generation materials.

An innovation hub will also be established to support over 320 deep tech firms in Saudi and abroad with “physical infrastructure, operational support, and access to regional markets,” the statement said.

IN ENERGY- Aramco plans to invest USD 3.4 bn on expanding its Motiva refinery in Texas, CEO Amin Nasser said during the forum. The facility — the largest fuel-making plant in the US — will integrate petrochemicals production with fuel output.

The Saudi oil giant is also set to ink MoUs with US utility firm Sempra and LNG producer NextDecade to supply 6.2 mn tons of liquefied natural gas to Aramco annually, Nasser added.

In parallel, the company signed two 20-year agreements for LNG supplies from separate facilities in Texas, as part of a broader push to access 7.5 mn tons annually from its international projects by 2030, Nasser said. Bloombergand Reutersalso had the story.

AND IN DEFENSE- PIF-owned National Security Services Company (Safe) signed two agreements worth USD 450 mn on the sidelines of the forum, including a USD 350 mn agreement with US-based defense contractor Leidos, CEO Turki Al Thonayan told CNBC Arabia. Another USD 100 mn agreement was put in place with Smart Solutions.

ALSO- Life Shield + Colt ink USD 500 mn agreement: Local firm Life Shield signed a USD 500 mn agreement with US-based firearms manufacturer Colt’s Manufacturing to produce and localize the production of light and medium weapons in the Kingdom, Al Arabiya reports.

BUT- Some are waving red flags: Trump’s push for USD 1 tn in Saudi investment may clash with the Kingdom’s own transformation plans, which Bloomberg estimates could cost nearly USD 2 tn, including gigaprojects like Neom and major events like the World Expo 2030 and the FIFA World Cup in 2034. Rising deficits, falling oil revenues, and mounting borrowing might curb the Kingdom’s ability to meet targets, Bloomberg argued.

WORTH MENTIONING-

  • BlackRock’s CEO Larry Fink said the company started developing financial products tailored to the Kingdom amid its transformation into a “strong destination for capital.” Fink told investors to expect heightened market volatility over the next 90 days due to uncertainty around Trump’s trade policies.
  • Blackstone’s infrastructure fund with the PIF delivered a 17.5% return, outperforming its original 9% target, said Blackstone CEO Stephen Schwarzman. The firm will focus on securing multiple sites for data centers over the next five years.
Tags: