KSA and US to get down to business in New York

With the diplomacy and the statecraft nearly at an end, it is time to get down to the sharp end of business in commercial relations between the US and Saudi Arabia.
On Tuesday at the Gotham Hall in midtown New York City, the elite of the business leadership from America and the Kingdom will come together for a day of formal presentations, networking and deal-doing to give a concrete form to the new relationship between the two countries. It is the financial and economic equivalent of the political summits in the White House and other parts of Washington last week, as Saudi Crown Prince Mohammed bin Salman continues his tour of the US.
The Saudi-US CEO Forum is the second installment in a series of annual events that began in Riyadh last May during President Trump’s first overseas visit since he entered the White House. That was regarded as a groundbreaking event, leading to deals or agreements worth hundreds of billions of dollars.
If the Riyadh forum was about establishing new relationships and cementing existing ones, the New York version will be about taking this to a new level, and actually doing some business. The theme — “An era of transformation: From vision to implementation” — says it all.
Specifically, the agenda for the one-day summit aims to enhance bilateral trade, break down barriers to enable closer economic ties and explore actionable partnerships and investment opportunities.
It is also a two-way learning process for the Saudis and the Americans in a relationship that under previous administrations was not always a smooth one. The other agenda aims are to exchange impactful ideas and experiences, facilitate best practices and expand cultural understanding and awareness.
Forum attendees will be welcomed by two of the countries’ top business leaders. Andrew Liveris, chairman and chief executive of the Dow Chemical company and a committed partner of the Kingdom, will be joined by Lubna Olayan, deputy chairperson and chief executive of Olayan Financing Company and a role model for Saudi Arabia’s aspirational women.

Big names in finance are to meet for a day of presentations, networking and deal-doing as Crown Prince Mohammed continues his tour of the US.

— Frank Kane

They will be followed by a keynote address by Mohammed Al-Jadaan, the Kingdom’s minister of finance. Delegates will be listening carefully to see if he adds any detail to his statement last week that the initial public offering (IPO) of Saudi Aramco, still expected in some form this year, is “on track.”
Subsequent panels during the day will address investment issues associated with “Generation 2030,” the young Saudi citizens who are growing up during the transformational era of Crown Prince Mohammed bin Salman.
There will be separate sessions on the growing economic power of Saudi Arabian women, the commercial opportunities of the Kingdom’s newly emerging sectors such as entertainment and culture, and a special focus on what are called the “giga-projects” — such as the planned urban center Neom — which are intended to take growth to the next level.
But, as ever at these kind of events, the real business will be done in the private bilaterals between the captains of industry and finance from the two countries. There is an imperative to get some signatures on contracts, and I expect some big deals to be announced or firm commitments signed on transactions that are so far at the “memorandum of understanding” stage. Here are some of the sectors that I think will be worth watching.

Oil and gas
It is not just whether Saudi Aramco will give us any clearer hint as to which international market it prefers for an IPO at some stage, but also whether it will get involved in the big game changer in the energy world: US shale. The royal tour takes in Houston, Texas, the mission control for the booming shale industry, and there could be news of a formal investment by Aramco in the American energy business.

Infrastructure
The Saudi Public Investment Fund (PIF) is a 50/50 partner in a $40 billion investment vehicle with private equity firm Blackstone, a deal it clinched at the Future Investment Initiative in Riyadh last year. But there has yet to be a commitment of funds to an investment project. The US energy industry is crying out for infrastructure to get its product to the world’s markets, and it would not be surprising if the fund made a debut investment in this area.

Technology
PIF, and the SoftBank Vision Fund in which it is a big investor, have made no secret of their desire to be involved at the sharp end of robotics, artificial intelligence and autonomous transport. The royal tour also takes in the US West Coast, home to the country’s high-tech industry. Expect news from this area, and perhaps even some developments regarding PIF’s tricky $3.5 billion investment in Uber.

Entertainment and leisure
A big part of the Saudi economic transformation consists of developing these sectors at home, to give citizens a more comfortable lifestyle and to encourage them to spend their vacations, and their riyals, at home. The Americans, of course, are the world’s great entertainers. There will no doubt be other deals done in defense, finance and other commercial sectors. Transport links between the US and Saudi Arabia could be strengthened. Banking ties also look ripe for consolidation. All in all, it will be a historic coming together at the Gotham Hall. It’s down to business.

• Frank Kane is an award-winning business journalist based in Dubai. He can be reached on Twitter @frankkanedubai