By Noureddine Omar | 2024-10-07

Recently concluded and final-stage economic and military deals between the United States and Saudi Arabia reflect an upward trend in US-Gulf cooperation, Saudi experts said.

"Economic relations between the United States and Saudi Arabia are in continuous development," King Abdulaziz University economics lecturer Faisal al-Khawaldi told Al-Fassel.

He pointed to recent Saudi and Emirati investment in liquefied natural gas (LNG) projects in the United States, with Saudi Arabia investing through Aramco, and the United Arab Emirates via Abu Dhabi National Oil Company (ADNOC).

The Aramco deal "was concluded through several agreements, including an agreement with NextDecade for the purchase by Aramco of 1.2 million tons annually under a 20-year contract," al-Khawaldi said.

Under another agreement, Sempra Aramco will purchase five million tons per annum under a 20-year contract, he said.

Aramco had acquired a $500 million stake in MidOcean Energy, "an investment fund affiliated with Global Infrastructure Partners, a pioneer in the field of gas," he said.

These investments are the first step for Saudi Arabia to invest in liquefied gas outside its territory, he noted.

In May, ADNOC announced a deal to acquire an 11.7% stake in the first phase of NextDecade's Rio Grande LNG project in Texas. The deal will also give ADNOC 1.9 million tons annually of LNG supply.

Creating jobs

The trade deals between Saudi Arabia and the United States have many implications beyond the economic considerations, Saudi military expert Mansour al-Shehri told Al-Fassel.

"These deals reflect the extent of mutual trust between the two countries and also reflect the strength of the strategic partnership based on mutual benefit in all fields," he said.

The United States has a long history of stimulating the kingdom's economy, especially in the field of oil.

"The relationship has developed to include all economic, technological, security and defense sectors, culminating recently with the military deal," al-Shehri said.

These deals have a major impact inside Saudi Arabia, in terms of creating job opportunities and raising the per capita level of income, he said.

Lowering unemployment is critical, he said, as terrorist groups attempt to infiltrate societies "through the gate of poverty and unemployment."

These deals, which intersect with the security partnership, help to remove the specter of extremism, "protecting the kingdom from within and without," he added.

A country like Saudi Arabia, "given the importance of its location and regional and international influence, is always the focus of any harassment or attempts to undermine its internal security," al-Shehri said.

It is under threat from extremist groups such as the "Islamic State of Iraq and Syria" (ISIS), and state-sponsored actors like the Islamic Revolutionary Guard Corps (IRGC) and its regional affiliates.