Economy

Saudi Arabia has continued to make progress in diversifying its economy, although lower oil revenue, higher imports, and stronger remittance outflows pushed the current account into a small deficit in 2024.

On May 8, AGSIW hosted a discussion on how U.S. geoeconomic policy is reshaping ties with Gulf states.

Global demand forecasts by leading agencies have diverged sharply, reflecting a deepening sense of uncertainty about the future path of the global economy.

Trump’s trip to Saudi Arabia has the potential not only to reinforce the deep-rooted U.S.-Saudi alliance but also to expose the fault lines that could undermine future cooperation.

Trump’s tariff agenda may complicate Gulf governments’ capabilities to advance key policy initiatives and strategic economic partnerships, including Gulf investments in the United States.

Successful public-private partnerships could help Gulf Arab states improve infrastructure without further burdening state resources.

The concern for Gulf oil producers is that tariffs on major Asian powers could impact their manufacturing sectors and economies and dampen demand for oil.

The oil price environment remains manageable but looks increasingly uncomfortable for some Gulf states.