MAKE FRIENDS, NOT ENEMIES
The Riyadh summit clearly demonstrated that the Middle East would be the US administration's core foreign policy objective and that Saudi would be its most valuable partner.
The historic visit of US President Donald Trump to Riyadh on May 20 marked a new chapter in Saudi-US ties, and indeed a new era of the Kingdom's standing within the Islamic world.
Under the slogan 'Together we prevail,' Trump's decision to make Riyadh the primary stop on his first overseas trip as President was a sign of intent that the Middle East would be his administration's core foreign policy objective and that Saudi would be its most valuable and trusted partner. For the Kingdom's part, this was an opportunity to lead the region—including heads of state and representatives from 55 Islamic nations—into the most important discussions of our generation.
Not long after Trump's Air Force One landed on Riyadh's tarmac it became clear that the visit would deliver an unprecedented, sector-wide economic package and that the proceedings would be as much about numbers and action, as they were about the strong rhetoric. On May 20, the CEOs of over 50 leading US companies, 40 Saudi firms, and nine other business from key international markets convened at Riyadh's Four Seasons Hotel for the Saudi-US CEO Forum. The highlights from the event involved a number of private-sector partnerships, including a USD15 billion MoU with General Electric (GE), a USD3.6 billion deal with Honeywell, and a USD2.8 billion venture with Texas-based EPC provider McDermott, to support Saudi Aramco's widespread localization efforts and the development of SMEs throughout the country—amongst many others.
Yet, nothing echoed louder than the USD110 billion deal the two countries signed in the defense sector. According to the US State Department, the agreement is effective immediately and falls into five broad categories: air force modernization, air and missile defense, border security and counterterrorism, maritime and coastal security, and cyber security and communications upgrades. This also included a 'letter of intent' to assemble 150 Lockheed Martin Blackhawk helicopters in Saudi Arabia, with a value of USD6 billion. Even more spectacularly, however, the two countries secured an additional USD350 billion agreement over the next 10 years, making it the biggest arms deal in history. Little wonder, therefore, that President Trump left his meeting with Crown Prince HRH Mohammed Bin Naif remarking that “this was a tremendous day for investments in the United States."
There was also a clear strategic tone to these dealings. On the closing day of the event, HRH King Salman bin Abdulaziz chaired the Arab-Islamic-US Summit, aimed at combating extremism and terrorism and achieving regional peace, stability, and development. Speaking on behalf of the leaders of 55 Islamic nations and the US President, the Custodian of the Two Holy Mosques explained that “as part of our war against terrorism, we confirm our determination to wipe out Daesh organization and other terrorist organizations, regardless of their religion, sect or thought." In conclusion of the event, the participants agreed upon the 'Riyadh Declaration,' which will form a reserve of 34,000 soldiers from across the region to combat terrorism.
The spectacular arrival of President Trump to Riyadh served as the most welcome refresh in US-Saudi ties, following years of uncertainty during the Obama administration. However, perhaps even more importantly, it opened up a new chapter in Saudi Arabia's outreach across Arab and Islamic nations. As witnessed earlier in the year with HRH King Salman's month-long Asia trip, Saudi has been actively forging an expansive, diversified foreign policy from Indonesia in the east to Washington in the West. Yet, closer to home, many parts of the Arab world remain in socio-political, if not security, turmoil.
Hosting the leaders of these nations, including Egypt's President Adel Fattah el-Sisi, Jordan's King Abdullah, Iraqi President Fouad Massoum, Lebanon's Prime Minister Saad Hariri, Palestinian President Mahmoud Abbas, and the heads of each of the GCC states under the patronage of the Custodian of the Two Holy Mosques, and the leader of the free world President Trump, was an unprecedented display of unity.
Moreover, it has placed Riyadh at the center of the global fight against terrorism, the struggle to contain Iran's aggression, and the future stability and peace in the Middle East.
MAKE FRIENDS, NOT ENEMIES
TABLE OF CONTENTS
Column
YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister’s Office & Second Minister of Foreign Affairs and Trade, Brunei
TBY talks to YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister's Office & Second Minister of Foreign Affairs and Trade, Brunei, on the sector.
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A Crude Awakening
The Kingdom has made renewables a critical aspect of its ambitious Vision 2030 effort to diversify its economy and wean itself from a strictly carbon-based diet, not to mention empower local businesses and individuals to take up the mantle and lead the energy sector into the next generation.
read articleInterview
Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) , Saudi Aramco,
TBY talks to Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) at Saudi Aramco, on the IKTVA program, supporting local content, and looking back over a successful year.
read articleInterview
Ayman Abdullah Alfallaj, CEO, Thiqah
TBY talks to Ayman Abdullah Alfallaj, CEO of Thiqah, on how the private sector can keep pace with the speed of public reforms, delivering a strong and lasting value proposition, and integrating the fruits of privatization into the public sector.
read articleFocus: Technology Investments
Investment Calling
A technological revolution is underway in the Kingdom. Already one of the most tech-savvy nations in the Middle East, the Saudi market has long sought a thriving domestic technology and innovation scene. And with Vision 2030, it is on course to deliver just that.
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A Hejaz Unhindered
An ambitious series of road and rail projects from the Jordanian border down to the Indian Ocean are slated to open in part before the end of 2017. They bring the Kingdom that much nearer to its goal of greater non-carbon-based economic integration with the world.
read articleInterview
Sulaiman bin Abdullah Al-Hamdan, Former Minister of Transport and Minister, Civil Service
TBY talks to Sulaiman bin Abdullah Al-Hamdan, Former Minister of Transport and current Minister of Civil Service, on an attractive legislative framework for investment, railway linkages, and port developments.
read articleInterview
Rumaih M. Al-Rumaih, President, Public Transport Authority (PTA
TBY talks to Rumaih M. Al-Rumaih, President of Public Transport Authority (PTA) & Acting President of Saudi Railway Organization, on teaming up with commercially committed partners, making sure the Kingdom's land and sea bridges are of the first order, and providing employment for all the Kingdom's inhabitants.
read articleInterview
Nabeel M. Al-Amudi, President, Saudi Ports Authority, and Minister of Transport
TBY talks to Nabeel M. Al-Amudi, Minister of Transport, and President of Saudi Ports Authority, on optimally restricting concession agreements, resolving bottlenecks in the logistics chain, and privatizing as rapidly as possible.
read articleInterview
Khaled Bin Abdullah Al Hogail, CEO & Managing Director , Saudi Public Transport Company (SAPTCO)
TBY talks to Khaled Bin Abdullah Al Hogail, CEO & Managing Director of the Saudi Public Transport Company (SAPTCO), on the importance of strong and rational regulations, knowledge transfers, and unifying public and private transportation networks.
read articleInterview
Imad El-Zein, CEO, Auto World-Sixt Saudi Arabia
TBY talks to Imad El-Zein, CEO of Auto World-Sixt Saudi Arabia, on growing market share in challenging circumstances, partnering with world-class players to boost its local presence, and combining better services with lower costs.
read articleInterview
Saleh H. Al-Ghamdi, Acting CEO, Saudi Air Navigation Services Company (SANS)
TBY talks to Saleh H. Al-Ghamdi, Acting CEO of Saudi Air Navigation Services Company (SANS), on maximizing safe and effective services, effectively increasing the rate of Saudization, and easing the pathway of women into the workforce.
read articleInterview
Khalil Kutubkhanah, CEO, Jeddah Development and Urban Regeneration Company (JDURC)
TBY talks to Ibrahim Khalil Kutubkhanah, CEO of Jeddah Development and Urban Regeneration Company (JDURC), on Jeddah's unplanned settlements, the company's redevelopment projects, and its partnership model with the private sector.
read articleInterview
Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister, Planning and Health & Director of the Vision Realization Office
TBY talks to Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister for Planning and Health & Director of the Vision Realization Office, on reforms within the Ministry of Health, the corporatization of healthcare provision, and transformations in care delivery.
read articleInterview
Mohanad A. Dahlan, CEO, University of Business and Technology (UBT) Company
TBY talks to Mohanad A. Dahlan, CEO of University of Business and Technology (UBT) Company, on the evolution of the company, education investments, and upcoming sectors that will need support from the sector.
read articleFocus: Universities
Broad and Deep
As part of the continuing decentralization of higher education in Saudi Arabia, individual universities are pursuing their own paths to grow their faculties, engage with various international stakeholders, and ultimately move toward a more privatized future.
read articleInterview
Rafique Izhiman, Area General Manager KSA Jeddah, Yanbu Hotels
TBY talks to Rafique Izhiman, Area General Manager KSA Jeddah/Yanbu Hotels & General Manager, Intercontinental Hotel Group (IHG), Jeddah, on the role the firm plays in the market, expanding its footprint in the country, and expectations for 2017.
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