KSA, US: Strategic Partnership Between Two Global Economic Powers

  • 3/21/2018
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Trade relations between Saudi Arabia and the United States are a global model of deeply-rooted international relations and common interest. The two countries are among the most prominent economic forces in the world, with US GDP and Saudi Arabias weight and prestige in oil markets. Figures related to trade exchange between the kingdom and US affirm the strong ties, at a time when Crown Prince Mohammed bin Salman visit is expected to open wider dimensions of strategic economic ties. Based on initial data of 2017, issued by the General Authority for Statistics, the US comes second in trade exchange with the kingdom, SAR135 billion (USD36 billion). Given this data, the huge deals signed by Saudi Arabia and US in May are forecast to push the trade and economic ties in the coming period – these huge deals reflect the US keenness to cement trade partnership with Saudi Arabia. In this regard, Saudi Arabia signed with US in May deals and unprecedented cooperation memorandums worth USD280 billion, which would create hundreds of thousands of vacancies in both countries within the coming years. Among the signed deals are: ExxonMobil Chemical Co. and SABIC deal that targets petrochemicals production projects; Lockheed Martin deal that would support manufacturing 150 Blackhawk helicopters in Saudi Arabia; and General Dynamics deals that target domestic manufacturing and designing of armored trucks in the kingdom. The two countries were keen to develop trade and investment to serve the best interest of Saudi Arabia and the US. In 2003, an agreement was signed to establish the Trade and Investment Framework Agreements (TIFAs) including representatives from both parties.

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