Saudi Arabia responds to Trump's proposal to cut oil prices
Photo: Saudi Arabia's Minister of Economy Faisal Alibrahim (Getty Images)
Saudi Arabia is ready to meet the growing global demand for oil. The priority is market stability, according to Faisal Alibrahim, Minister of Economy of Saudi Arabia.
Asked whether Saudi Arabia would reduce the price of oil (after US President Donald Trump said in Davos that he would ask the kingdom and OPEC to do so), he said that Riyadh is focused on the long-term stability of the oil market.
“The kingdom's position, OPEC's position, is all about long-term market stability to make sure that there's enough supply for the growing demand,” particularly from the US and artificial intelligence, he said in Davos.
Faisal Alibrahim said that the $600 billion in expanded investment and trade with the United States mentioned by Saudi Crown Prince Mohammed bin Salman covers investment as well as procurement in the public and private sectors.
Salman reaffirmed the kingdom's intention to expand US investment and trade over the next four years to the tune of $600 billion and possibly even more.
“This number represents investments, procurement, public and private sector, and it's just a mirror reflection of the strong relationship,” Faisal Alibrahim said when asked if the kingdom would increase this figure to $1 trillion, as Trump suggested at the forum.
“From the beginning of Vision 2030 until 2030, we have invested 12 times more in the economy,” Alibrahim said.
Vision 2030 is an ambitious program launched in 2016 and aimed at reforming the Saudi economy to reduce dependence on hydrocarbons, create jobs, and build new industries.
Faisal Alibrahim commented on the long-standing friendship between the Kingdom and the United States.
He said that Saudi Arabia's position was to have a strong partnership with all its partners and friends. He explained that tariffs had been used as a tool in the economy when they were designed to achieve a goal and were limited in time. He added that tariffs could help create a competitive environment for local industries to get started.
US President Donald Trump called on Saudi Arabia and OPEC to reduce the price of oil. According to him, if the price were to drop, Russia's war against Ukraine would end quickly.
