Saudi Crown Prince Mohammed bin Salman said on Tuesday that the kingdom's $1 trillion investment pledge in the US is part of its long-term business strategy, even as it deals with lower oil prices.
Prince Mohammed increased Saudi Arabia's investment commitment from a previously announced $600 billion during a meeting with President Donald Trump at the White House. It was the Crown Prince's first visit to the US since 2018.
Experts have questioned whether Saudi Arabia could finance this commitment amid softening oil prices. Despite geopolitical volatility this year, bearish sentiment has taken hold on growing fears of an oil supply glut as Opec+ increases oil production.
Saudi Aramco this month reported a decline in revenue in the third quarter this year on lower crude prices. Brent, the global benchmark for crude, is down about 15 per cent this year at about $65 a barrel.
Prince Mohammed said the investment in the US is about the kingdom's long-term business plans.
“We are not creating fake opportunities to please America [or] please President Trump. It's real opportunities,” Prince Mohammed said.
He spoke particularly about the kingdom's artificial intelligence ambitions, as it aims to become a global centre.
“Saudi Arabia has a huge demand of … computing power,” Prince Mohammed said.
He said Saudi Arabia would spend $50 billion in the short term on semiconductors for the kingdom's needs, and that an agreement with the US would allow the Arab world's largest economy to focus on “hundreds of billions of dollars in the long term”.
“So there's a lot of real opportunities that fit our needs in Saudi Arabia and fit our business strategy,” Prince Mohammed said.
His visit to Washington comes after last month's Future Investment Initiative forum in Riyadh.
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