Industry Minister Bandar Alkhorayef Begins Official Visit To The US To Strengthen Economic Ties

Minister of Industry and Mineral Resources Bandar Alkhorayef has embarked on a four-day official visit to the United States. This visit aims to strengthen economic ties and explore collaboration in industrial and mining sectors. The focus is on joint ventures in key areas like downstream industries, mining, automotive, aerospace, medical devices, and food industries.

Alkhorayef's agenda includes discussions with senior US government officials and leaders from major American companies. These meetings aim to foster partnerships in mining, advanced industrial production, automotive engineering, and food processing. Notable engagements include talks with US Secretary of Energy Chris Wright and North Carolina’s Secretary of Commerce Lee Lilley.

The United States remains Saudi Arabia’s largest economic partner in the Middle East. In 2024, non-oil trade between the two nations reached $18.59 billion. Saudi Arabia exported $5.42 billion worth of goods to the US, primarily plastics, aluminum, and chemicals. Meanwhile, imports from the US totaled $13.17 billion, including machinery, vehicles, electrical equipment, and pharmaceuticals.

Currently, over 1,300 US companies operate in Saudi Arabia. More than 200 have established regional headquarters in Riyadh. This reflects growing investor confidence in Saudi Arabia’s industrial ecosystem. Major US firms like Caterpillar, John Deere, PepsiCo, Coca-Cola, Nestlé, and Lucid Motors have operations in the Kingdom.

The Public Investment Fund allocates about 40% of its global portfolio to the US market. Saudi investments in the United States are estimated at $770 billion. During the latest Saudi-US Investment Forum, it was revealed that bilateral agreements have surpassed $600 billion across sectors such as mining, energy, defense, and advanced technologies.

A significant focus of this visit is enhancing cooperation in mining and critical minerals sectors due to rising global demand. In May 2025, a memorandum of cooperation was signed with the US Department of Energy during the Saudi-US Investment Forum to secure global supply chains for critical minerals.

Technological Advancements

An agreement between Saudi Arabian Mining Company (Maaden) and US-based MP Materials is already facilitating rare earth supply chain development for global energy transition support. Advanced technology discussions are expected as Alkhorayef seeks collaboration opportunities in advanced manufacturing and innovation.

Saudi Arabia is adopting Fourth Industrial Revolution (4IR) technologies like AI, automation, and robotics through initiatives such as the Future Factories Program. This program aims to modernize factories for improved efficiency across manufacturing and supply chain operations.

Incentives for Investors

While visiting the United States, Alkhorayef will promote financial incentives available to investors in Saudi Arabia. The Standard Incentives program offers up to 35% capital investment costs capped at SAR50 million. These incentives aim to attract potential investors by highlighting opportunities within the Kingdom's growing industrial sector.

Saudi Arabia's role as a global industrial hub aligns with the United States’ reputation as a powerhouse economy. This partnership reflects a shared commitment to economic growth and industrial transformation while fostering a long-term strategic alliance between both nations.

With inputs from SPA