Bilateral Relationship between Saudi Arabia and United States

The bilateral relationship between Saudi Arabia and the United States is one of the most influential and complex partnerships in international diplomacy. Spanning more than eight decades, the relationship has been characterized by mutual interest in regional security, economic cooperation, and global political alignment. From its early foundation in the mid-20th century to its continued cooperation in the realms of energy, military affairs, and geopolitical strategy, the U.S.-Saudi alliance has weathered many global shifts and challenges. Today, both nations continue to shape the political and economic landscape of the Middle East and beyond, despite occasional tensions and divergent priorities.

1. Historical Background

The relationship between Saudi Arabia and the United States began in the 1930s, when the discovery of oil in Saudi Arabia created an initial point of cooperation. Over time, the partnership expanded, solidified by shared interests in oil, security, and stability in the Middle East.

The Early Years and the Discovery of Oil

In 1933, Saudi Arabia and the United States formally began their relationship with the establishment of the Standard Oil Company of California (Socal), which later became Chevron. The discovery of oil in Saudi Arabia in 1938 marked a turning point, making the U.S. a key player in the kingdom’s development and economic transformation. In exchange for access to Saudi oil reserves, the United States provided military support, equipment, and expertise to help stabilize the kingdom and secure its borders.

The strategic importance of Saudi Arabia’s vast oil reserves to the American economy solidified the U.S.-Saudi partnership. This arrangement proved beneficial to both sides—Saudi Arabia gained vital infrastructure and military assistance, while the U.S. gained access to oil supplies that became critical for fueling the post-World War II economic boom. See itypeusa for more information about United States.

World War II and the U.S.-Saudi Partnership

During World War II, Saudi Arabia’s role as an oil supplier was crucial to the Allied war effort. In 1945, President Franklin D. Roosevelt met with King Abdulaziz Al Saud aboard the USS Quincy in the Suez Canal, marking the official beginning of the Saudi-American alliance. This meeting is often considered the foundation of the enduring relationship between the two countries. The U.S. provided military protection for Saudi Arabia and other Gulf monarchies, while Saudi Arabia continued to supply crucial oil to the Allies.

After the war, the alliance continued to evolve as both nations recognized the importance of maintaining stability in the Middle East. The U.S. viewed Saudi Arabia as an important counterbalance to Soviet influence during the Cold War, and Saudi Arabia sought to align itself with the West to ensure its security and development.

The Cold War and Shifting Geopolitical Dynamics

Throughout the Cold War, Saudi Arabia and the United States cooperated closely in the face of increasing Soviet influence in the Middle East. The two countries shared common concerns about the spread of communism, particularly in countries like Egypt and Iraq. Saudi Arabia’s role in the region became ever more critical as the U.S. worked to contain Soviet power.

In 1973, the Arab oil embargo against the West, which was led by OPEC countries including Saudi Arabia, marked a brief period of tension between the U.S. and Saudi Arabia. However, by the 1980s, both nations were working together again, particularly during the Iranian Revolution of 1979 and the subsequent Iran-Iraq War. Saudi Arabia became an important partner for the United States in the region, both in terms of energy supplies and as a strategic ally in countering Iranian influence.

The Gulf War and Strengthening of the Partnership

The 1990-1991 Gulf War marked another defining moment in U.S.-Saudi relations. When Iraq, under Saddam Hussein, invaded Kuwait, Saudi Arabia turned to the U.S. for military support. The U.S.-led coalition successfully liberated Kuwait, and Saudi Arabia’s role as a partner in the coalition further cemented its relationship with the United States. The presence of U.S. troops in Saudi Arabia during and after the war raised concerns among some factions, leading to increased anti-American sentiments in the region.

Despite these challenges, the relationship remained strong, especially in the context of mutual interests in counterterrorism, energy security, and maintaining stability in the Middle East. The U.S. and Saudi Arabia continued to collaborate on military and economic matters throughout the 1990s and into the 21st century.

Post-9/11 Relations and Regional Dynamics

The terrorist attacks of September 11, 2001, put a strain on U.S.-Saudi relations due to the fact that 15 of the 19 hijackers were Saudi nationals. However, Saudi Arabia cooperated with the U.S. in the global war on terror, providing intelligence and logistical support. Saudi Arabia’s commitment to counterterrorism and its role in the Middle East remained pivotal to U.S. strategy in the region.

The geopolitical landscape of the Middle East continued to evolve, particularly with the U.S. invasion of Iraq in 2003 and the subsequent instability it created. Saudi Arabia’s relationship with the United States was challenged by differing approaches to regional conflicts, including the ongoing Israeli-Palestinian dispute, the rise of ISIS, and Iran’s growing influence.

2. Diplomatic Relations

Diplomatic relations between Saudi Arabia and the United States have been defined by strong political, security, and economic ties. Over the years, the two countries have exchanged numerous high-level visits, engaged in extensive diplomatic dialogues, and maintained a robust presence through their respective diplomatic missions.

Diplomatic Dialogues

The diplomatic dialogue between Saudi Arabia and the United States has been characterized by regular high-level engagements, particularly between the two countries’ leaders. These dialogues often focus on security issues, such as counterterrorism efforts and regional stability, particularly in relation to Iran, Yemen, and the wider Middle East. Other key areas of dialogue include energy security, economic cooperation, and human rights concerns.

Over the years, Saudi and American diplomats have also discussed major regional conflicts, such as the Israeli-Palestinian conflict, the situation in Syria, and tensions with Iran. U.S. officials often work closely with their Saudi counterparts to ensure stability in the Gulf region, as Saudi Arabia is a major player in efforts to counter Iranian influence and extremist groups like al-Qaeda and ISIS.

Official Visits

Official visits between Saudi and U.S. leaders have played a central role in strengthening the diplomatic ties between the two nations. High-profile visits include those by U.S. Presidents to Saudi Arabia and Saudi Royal family visits to Washington, D.C. These visits typically include discussions on energy policy, regional security, economic cooperation, and international diplomacy.

In 2009, U.S. President Barack Obama made a high-profile visit to Saudi Arabia, emphasizing the importance of the U.S.-Saudi partnership in the context of the global economy and security. Additionally, Saudi Crown Prince Mohammed bin Salman’s 2018 visit to the United States underscored the deepening economic ties between the two nations, particularly in defense, technology, and energy.

Diplomatic Missions

Both Saudi Arabia and the United States maintain robust diplomatic missions in each other’s capitals. The U.S. Embassy in Riyadh is one of the largest U.S. embassies globally, and Saudi Arabia operates an embassy in Washington, D.C. These embassies serve as critical points for diplomatic engagement, facilitating political and economic cooperation, managing consular affairs, and organizing cultural exchanges. Additionally, these missions work together to coordinate efforts on counterterrorism, trade negotiations, and regional diplomatic initiatives.

3. Trade and Economic Relations

The trade and economic relationship between Saudi Arabia and the United States is one of the cornerstones of their bilateral relations. The two countries have cooperated extensively in energy, defense, and infrastructure, with U.S. companies playing a key role in Saudi Arabia’s economic development and diversification.

Bilateral Trade Volume

Trade between the United States and Saudi Arabia has grown significantly over the years, particularly in the energy sector. While the U.S. imports significant amounts of oil and petroleum products from Saudi Arabia, the U.S. also exports a wide range of goods and services to Saudi Arabia. Bilateral trade reached $26.9 billion in goods and services in 2020, with the U.S. maintaining a trade surplus.

The trade relationship continues to evolve with Saudi Arabia’s Vision 2030, which aims to diversify its economy away from oil dependence. As part of this vision, Saudi Arabia has increasingly sought to develop non-oil industries, providing new opportunities for American companies in sectors such as technology, education, and healthcare.

Major Imports and Exports

• Saudi Arabia’s Exports to the United States:
  • Petroleum and petroleum products
  • Chemicals and plastics
  • Aluminum and other metals
  • Textiles and apparel
• United States’ Exports to Saudi Arabia:
  • Aircraft and parts
  • Machinery and equipment
  • Electrical machinery
  • Pharmaceuticals and medical devices

Saudi Arabia’s oil exports to the United States have historically dominated the trade relationship, though this has diversified in recent years as both countries focus on new economic collaborations in technology, infrastructure, and services. The U.S. exports a variety of goods to Saudi Arabia, particularly in sectors such as aerospace, defense, and medical technology.

Investment Flows

The United States has been one of the largest investors in Saudi Arabia, particularly in the energy and defense sectors. American companies have contributed to the development of Saudi Arabia’s oil infrastructure, including drilling and refining technologies. Additionally, U.S. defense contractors such as Lockheed Martin and Boeing have long been involved in supplying military equipment and services to Saudi Arabia.

Saudi investments in the U.S. are also significant, particularly in the real estate, technology, and energy sectors. The Saudi Public Investment Fund (PIF) has made high-profile investments in American companies, including technology giants like Uber, Tesla, and Lucid Motors.

Economic Cooperation Agreements

Although no formal free trade agreement exists between the United States and Saudi Arabia, both countries have engaged in numerous economic cooperation agreements aimed at improving trade relations and fostering investment. These agreements cover areas such as technology transfer, defense procurement, and energy collaboration.

The U.S. and Saudi Arabia have also established frameworks to support Saudi Arabia’s Vision 2030, including initiatives to promote economic diversification, sustainable development, and job creation in non-oil sectors. As part of this vision, both countries have worked together on renewable energy projects, healthcare, and education reforms, with U.S. companies playing a crucial role in helping Saudi Arabia achieve its economic and social development goals.