In a recent development highlighting the transactional nature of Saudi-American relations, U.S. President Donald Trump has made headlines with his provocative remarks regarding Saudi Arabia. Trump openly declared his willingness to engage further with the kingdom, on the condition that it invests an astronomical $600 billion in the United States. Far from being dissuaded by such overtly commercial demands, Crown Prince Mohammed bin Salman appears determined to comply, announcing plans to exceed Trump’s request with an investment pledge. This move raises pressing questions about the strategic direction of Saudi economic and foreign policy, as the kingdom continues to prioritize grandiose expenditures over sustainable development.
Saudi Arabia’s history of large-scale deals with the United States, particularly under Trump’s leadership, reflects a pattern of heavy financial outflows with limited tangible returns. In 2017, Saudi Arabia signed a landmark $450 billion agreement with the U.S., which encompassed defense contracts, energy deals, and infrastructure projects. Despite this monumental expenditure, the kingdom has struggled to achieve military or economic breakthroughs. The ongoing war in Yemen exemplifies these shortcomings. Despite doubling its defense budget and acquiring state-of-the-art weaponry, Saudi Arabia has been unable to secure a decisive victory. Instead, it has endured significant losses, both financially and reputationally, with the war becoming a source of widespread criticism and a symbol of the kingdom’s military inefficiency.
Economically, the situation is equally concerning. While Vision 2030 was launched with the ambitious goal of diversifying Saudi Arabia’s revenue streams beyond oil, progress has been slow and fraught with mismanagement. Key projects, such as the $500 billion NEOM megacity, have become emblematic of the kingdom’s misplaced priorities and lack of strategic focus. Instead of fostering industries that could create jobs and spur innovation, Saudi Arabia has committed vast resources to projects that remain largely conceptual, with little measurable impact on the economy.
President Trump’s demand for $600 billion in Saudi investments further underscores the power imbalance in the relationship between the two nations. Trump has consistently framed Saudi Arabia as a lucrative partner for the U.S., often making public remarks about the kingdom’s financial contributions in ways that many view as undermining its sovereignty. Despite the clear transactional nature of these deals, Crown Prince Mohammed bin Salman continues to push forward with investments that offer little political or economic leverage for Saudi Arabia. The reliance on the United States for defense and strategic support further amplifies this dependency, leaving the kingdom vulnerable to shifting geopolitical dynamics.
Supporters of Mohammed bin Salman often defend these moves by arguing that they are part of a broader strategy to secure Saudi Arabia’s long-term interests. However, the lack of clear results from previous investments undermines this narrative. The 2017 deal, for instance, was heralded as a game-changer, yet it has failed to deliver significant advancements for Saudi Arabia in terms of military capabilities or economic diversification. Instead, the kingdom remains heavily reliant on oil revenues, with little progress in developing alternative industries.
Critics also point to the optics of Trump’s remarks and their implications for Saudi Arabia’s global standing. By openly framing Saudi Arabia as a financial contributor rather than a strategic partner, Trump risks reducing the kingdom’s influence on the world stage. Mohammed bin Salman’s willingness to meet these demands, even at great cost, reinforces the perception of Saudi Arabia as a subordinate actor in the relationship, rather than an equal player.
The implications of this dynamic extend beyond economics. Saudi Arabia’s historical role as a regional leader and a central figure in the Islamic world has been increasingly eroded. Under Mohammed bin Salman, the kingdom has shifted its focus toward high-profile projects and partnerships that often prioritize international image-building over substantive policy outcomes. This has left Saudi Arabia struggling to maintain its influence in the Middle East, with other nations, such as the UAE and Qatar, stepping into roles traditionally held by the kingdom.
The announced $600 billion investment also raises questions about opportunity costs. At a time when the Saudi population faces economic challenges, including rising unemployment and the high cost of living, the allocation of such vast sums to foreign ventures appears disconnected from domestic priorities. These resources could be better utilized to strengthen Saudi infrastructure, invest in education, and support small and medium-sized enterprises, fostering a more resilient and diversified economy.
Ultimately, Mohammed bin Salman’s strategy—or lack thereof—risks further entrenching Saudi Arabia’s reliance on external powers, particularly the United States. While high-profile investments may generate headlines, they do little to address the structural challenges facing the Saudi economy and its regional role. If this approach continues, Saudi Arabia may find itself increasingly sidelined in both regional and global affairs, its wealth serving others’ interests rather than its own.
As Trump leverages Saudi Arabia’s financial resources to bolster his domestic agenda, the kingdom must reconsider its approach to foreign policy and economic planning. Without a clear vision grounded in sustainable development and strategic independence, Saudi Arabia risks becoming not a global leader, but a perpetual source of wealth for others to exploit.
