Saudi Arabia has suspended its investments in the US so long as Riyadh finds out out how to work with the new US administration.
US Secretary of State John Kerry speaks during his meeting with Saudi Arabia’s Foreign Minister Adel al-Jubeir (Photo: Reuters / Kevin Lamarque)
Saudi Arabia is going to rethink its “financial strategy” toward the US due to several factors, one of which is the election of billionaire Donald Trump as the country’s president, the Wall Street Journal reported, citing informed sources.
Riyadh will suspend its investment in the economy also due to changes in the US law, in particular, due to adoption of a bill by the Senate and the US Congress, which authorizes to prosecute states, which support terrorist activities on the territory of the US. According to the US government, Saudi Arabia is among such countries.
The Saudi sovereign fund has already suspended investments until the day comes when Riyadh finds out consequences, which may be caused by the approval of this bill, and figure out how to work with the new US administration.
According to the sources of the Wall Street Journal, the country’s authorities also contemplate initial public offering (IPO) of the Saudi largest state-owned oil company Saudi Aramco not only on the New York Stock Exchange, but also on the London Stock Exchange. This can happen in the next year or in 2018. The floatation of the company on the stock exchanges can attract $100 billion.
Representatives of the Saudi sovereign fund and Saudi Aramco declined to comment on this information.
Trump himself supported the adoption of this bill. The billionaire warned acting US President Barack Obama that if he put a veto on this bill, it will be “one of the worst moments of his presidency.”
On October 1, the first lawsuit since the adoption of the law, which caused a controversy between Saudi Arabia and the US, was filed by American Stephanie Ross DeSimone, whose husband lost his life during the terrorist attacks on September 11, 2001.
Riyadh warned the Obama’s administration that Saudi Arabia will sell the US assets valued at $750 billion, owned by the kingdom, in order to avoid their freeze, if Washington takes this law. The Saudi authorities have repeatedly rejected suspicions that terrorists received assistance from people, connected with the official authorities of the country.
Last week, the AP news agency reported that Trump closed a number of companies, among which may be several ones, associated with Saudi Arabia. The news agency noted that it was made in order to “avoid potential conflicts of interests” after the Trump’s inauguration. However, a representative of the billionaire said that it was an optimization of business.
They can always invest in Iran :-)
Keep your filthy Wahabbi head-chopper oil-bux out of my country – we don’t want/need them, you God damn butchers.
Good sign that Trump may be genuine.
This is indisputable proof that Trump is the good man! Saudi’s wont even work with him lol. Maybe soon we leave NATO, and ditch the Israeli-witch as well. https://holodomorinfo.com/
Saudi Arabia badly needs the USA for its protection and the USA gave that protection in exchange for getting preferential treatment in oil and business. Aramco is totally managed by Americans. The whole Saudi Army is trained by Americans. Without the USA, Saudi Arabia will be lost as it does not trust any other country like China and Russia that they consider as atheists. UK remains an alternative but the Saudis have always despised the Brits. If they withdraw their investment in the USA, they will be the losers, as the USA will feel no obligation to protect them and they will be exposed to a civil war. The USA needs to mend its relation with Iran that has a huge potential with a dynamic and highly motivated youth, contrary to Saudi Arabia where the male youth are spoiled brats without much interest in science. If Saudi Arabia wants to progress it needs to unleash the women potential but that will shake this traditional society and may cause its collapse. Therefore Saudi Arabia is doomed.
Part of the US vulnerability is the very high debt (20T)-this makes it dependent on high treasury purchases at low rates, something KSA does (hence, its influence).
You are right: that is the crux of the matter; if SA withdraws its $750b, the US dollar as reserve currency – i.e. the petrodollar – will be seriously weakened and that means economic collapse in the USA. So Trump will have to find a middle way to keep things in the balance until the invisible day when the US can repay its debt.
It is going whatever Saudi does. Other nations are trading in their own currencies, particularly Russia and China. Saudi, is also running out of money and so they might just need that $750 billion, to balance their own accounts, using Trump as an excuse.
I wonder how much it costs the US tax payer for that Saudi investment?
I don’t think it costs the taxpayer so much – except what we pay for the defense of Saudi Arabia. But they pay for their weapons. And they have an agreement that they sell their oil in dollars not local currencies and then spend a portion of these petrodollars on US products – which is likely why Saudi Arabia invests so heavily in US weapons. Yes the Saudi army is trained by the US, but it is barely an army, most certainly not one that can fight or win a war – not even agaisnt the Houti rebels in Yemen! But then of course, the US also cannot win against the Taliban who now controls more territory than before the US invasion of Afghanistan.
As to them needing the $750b – maybe so. But now with the cutback in oil production the oil price will increase and they will make more money again. Which means we, the car drivers and consumers will pay. Whatever costs in this world always comes down to the consumer, the only source of income for the government.
From where else will KSA purchases treasury bonds? It will take them years to shift to another country, and which one?
Good riddance to these barbarians, we don’t need or want them negotiating in our Govt anymore, or their filthy money. Their middle name is murder, causing murder and suffering around the world.
As Doris Day sings – Que Sera Sera
Sounds like “democracy” might be coming to saudi arabia. There are few governments more deserving of regime change than the saudi so called royalty. These are one of the largest state sponsors of terrorism and the spread of the ideology of wahabism. It’s the state religion of saudi arabia and the ideology of isis, al qaeda / nusra, and many other genocidal groups inside Syria and Iraq at present. I’m normally against intervention and find “responsibility to protect” anyone anywhere to be unethical in most cases as it’s presently used to justify invasion, occupation, and neocolonist rule through native puppets willing to betray the people they claim to represent if and when it suits the puppet’s handlers interests. Usually this leads back to, creates profit for, and debt to privately owned western central banking system interests, including but not limited to, the privately owned us federal reserve bank which controls the federal reserve note aka the us dollar.
In this case it would be really doing the people a favour!
Why not have a pretend coup in Saudi Arabia? Lots of nice fruity oil reserves, so many good spoils to be had – Obama? CIA? Come on guys, lets just do one for the road? You never knocked one back before – so why not now? OH – whats that? what did you say? … Oh I see, they are your paymasters, and you are not allowed to overtake your pay masters are you?
They can’t lose the petrodollar – the US economy depends on it!
No worry. Trump will ‘earn’ it as cost of protecting the Kingdom. Saudi Royals wont last a month without American support. Russia and China are no options. Even for its investment, America is only destination – China, India not at all in competition. Trump is too smart for Saudis.
They can invest in Israel since the royal family root is from Jews.
They can invest in Israel since the root of Royal family hail from Jews.
They can invest in Israel.
Another bonus, courtesy President Elect Trump.