Arab News reports on the scale of American-Saudi business, citing the Jeddah Chamber of Commerce & Industry’s figures that the Kingdom has investments in the US of over $421 billion. It also notes that the US is the main trading partner with the Kingdom while the Kingdom is the 15th most important for the US.
Saudis invest SR1.58tr in US
Galal Fakkar I Arab NewsJEDDAH: Saudi private sector investments in the US last year reached SR1.58 trillion, according to the chairman of the Jeddah Chamber of Commerce and Industry (JCCI).
“The joint ventures between the private sectors in both countries will increase tremendously thanks to the facilities provided by both governments,” Muhammad Abdul Qadir Al-Fadl said at a meeting of the Saudi-American Business Council at the JCCI.
Al-Fadl said American businessmen and their Saudi partners would invest in major projects, to be established in the Kingdom’s industrial cities.
The council’s meeting came after 15 American legislators from both the Republican and Democratic parties visited the Kingdom last week. The US-Saudi Business Board’s aim was to boost bilateral economic ties.
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November:08:2009 - 11:48
I think I figured it a few years ago, just on the basis of capital movements, at a half-trillion dollars; the amount really started piled up after the Saudis paid off their 1990s debts. But they must have lost 20-40% of their investments in the market and housing collapse of the the past two years.
November:08:2009 - 12:57
I’m sure they did. And I’m equally sure they’re cautious about the price of oil getting too high. That seems to have been a Saudi approach for most of its history, in fact. They’ve been the ‘doves’ in OPEC and know that if the global economy tanks, the Saudi economy goes right along with it.
November:08:2009 - 14:01
People “outside” seem always to think Saudi flourishes when oil prices skyrocket. But actually when they go too high- people here start really to suffer. High oil prices inflate the cost of many goods- since so much is shipped in. People’s buying power really drops. I suppose in theory when prices are high- the profit is meant to “trickle down” and help everyone. But we all know how well “trickle down” often works in reality.
November:08:2009 - 14:47
If I recall correctly, the driver for the high cost of goods in the KSA during oil booms isn’t the oil price as much as high demand for goods and inadequate port capacity driving portage costs sky-high. What the KSA needs are more ports – and, I suspect, less corrupt port officials who won’t demand a bribe to lubricate the movement of ships.
November:08:2009 - 15:11
Port Capacity is certainly an issue- but I don’t see why the demand for basic goods would rise with oil prices.