Saudi Aramco announced on Wednesday that it had signed 34 preliminary deals with major U.S. companies, potentially worth up to $90 billion, aiming to deepen its commercial ties with the United States. The announcement was made following President Donald Trump’s visit to the kingdom, highlighting the strengthening of U.S.-Saudi economic relations.
Details of the Agreements
The agreements were primarily memorandums of understanding (MOUs), many of which did not include specific monetary values. Some of these deals had been previously announced, such as the agreement to purchase 1.2 million tonnes of liquefied natural gas (LNG) per year for a 20-year term from NextDecade. However, the majority of the MOUs underscore Saudi Arabia’s continued efforts to balance its oil dominance with broader industrial and technological development as part of its Vision 2030 initiative.
Vision 2030 and the Push for Investment
Aramco CEO, Amin Nasser, emphasized the importance of U.S. investments, stating, “The U.S. is really a good place to put our investment,” during his remarks at the U.S.-Saudi Investment Forum in Riyadh. The forum coincided with Trump’s four-day Gulf tour, which was marked by high-profile business agreements, including $142 billion in arms deals. These agreements demonstrate Saudi Arabia’s commitment to boosting foreign investments and diversifying its economy beyond oil.
Key Partnerships and Collaborations
Several key partnerships were outlined as part of the deal announcements. A notable MoU with Nvidia aims to establish advanced industrial AI infrastructure, including an AI hub, an engineering and robotics center, and workforce training programs. Other partnerships include:
- An MoU with ExxonMobil to evaluate upgrading the SAMREF refinery and expanding it into an integrated petrochemical complex.
- A non-binding agreement with Amazon Web Services to collaborate on digital transformation and lower-carbon initiatives.
- An MoU with Qualcomm to enhance industrial networks and AI capabilities.
Additional Investments and Expanding Relationships
Aramco also announced a $3.4 billion investment to expand the Motiva refinery in Texas, further solidifying its energy ties with the U.S. Beyond energy, Aramco has expanded its industrial, digital, and financial relationships with major U.S. companies such as SLB, Baker Hughes, GE Vernova, Honeywell, PIMCO, State Street Corporation, and Wellington. Additionally, the company has launched a unified investment fund named ‘Fund of One,’ in collaboration with financial giants BlackRock, Goldman Sachs, Morgan Stanley, and PIMCO.
Challenges and Market Conditions
Despite these positive announcements, Aramco’s shares have dropped nearly 9% this year. However, the company remains committed to its Vision 2030 agenda, aiming to boost economic growth and build stronger ties with U.S. and international partners across various sectors.