Saudi Arabia was invited to join BRICS in 2023, but the kingdom has yet to make an official decision. While many countries have welcomed the opportunity to join the rising economic bloc, Riyadh has chosen to temporarily postpone and focus on trade deals with the US.
Explaining why the world's leading oil exporter is hesitant with BRICS, Watcher.Guru pointed out that joining BRICS means reducing dependence on the West, especially the US. However, Riyadh needs Washington's support to realize its vision of Vision 2030 - a plan to transform the economy away from dependence on oil. If it leaves the US too early, Saudi Arabia could lose important investment opportunities.
Instead of joining BRICS, Saudi Arabia has taken a bold step: investing $600 billion in the US over the next four years.
According to Saudi Arabia State News Agency, Prince Mohammed bin Salman discussed this huge investment with President Donald Trump. In a phone call between the two leaders in late January, Crown Prince Bin Salman said that the Trump administration could create "unprecedented economic prosperity", and Saudi Arabia wanted to take advantage of this.
Although details about the origin of the $600 billion have not been released, it could be an investment from both the public and private sectors. This investment level could increase further if more attractive opportunities appear.
Since his first term, President Donald Trump has built close relations with Gulf countries, with Saudi Arabia as an important partner. After leaving office, Saudi Arabia even invested $2 billion in a company founded by Trump's son-in-law, Jared Kushner.
Immediately after his second inauguration, President Donald Trump said he would consider choosing Saudi Arabia as his first destination for his overseas trip, provided that Riyadh agreed to buy $500 billion in US goods. This is a strategy that Mr. Trump applied in 2017, when Saudi Arabia pledged to buy 450 billion USD of US products in exchange for his first visit to the country.
The decision to invest heavily in the US while not yet decided on BRICS shows that Saudi Arabia is balancing the benefits between the two major powers. On the one hand, Riyadh wants to maintain close relations with Washington to ensure the Vision 2030 process. On the other hand, postponing BRICS is not a denial, but could be an exploration move, waiting for an appropriate opportunity.
