Geopolitical Briefing: Saudi Arabia
11 May 2025
- Saudi Aramco’s Q1 profits fell 4.6% amid declining oil prices, prompting a significant dividend cut and raising concerns over funding for Vision 2030 projects.
- President Trump’s upcoming visit to Saudi Arabia aims to secure substantial investments and military deals, while Riyadh leverages its position to influence U.S. policy on Gaza and Iran.
- Saudi Arabia and Iran’s foreign ministers met in Jeddah, signaling continued efforts to strengthen bilateral ties and regional cooperation.
- The kingdom arrested nearly 16,000 individuals in a nationwide crackdown on residency and labor violations, reflecting internal security measures.
- Saudi Arabia’s industrial production index rose by 2% in March, driven by growth in manufacturing sectors, indicating progress in economic diversification efforts.(Financial Times, PressTV, Gulf News, Arab News)
Saudi Aramco reported a 4.6% decline in first-quarter profits, amounting to $26 billion, due to falling global oil prices and higher operating costs. This downturn led to a $10 billion reduction in dividends, impacting the kingdom’s budget, which heavily relies on oil revenues. The financial strain raises concerns over the funding of ambitious projects under Vision 2030, including the NEOM megaproject and preparations for the 2034 FIFA World Cup. (AP News, Financial Times)
President Donald Trump’s upcoming visit to Saudi Arabia, Qatar, and the UAE is expected to focus on securing significant economic and strategic deals. The trip aims to bolster mutual security cooperation, with discussions likely to include arms deals, energy partnerships, and investments in technology sectors. Saudi Arabia is leveraging this opportunity to influence U.S. policy, particularly by pressing for an immediate ceasefire in Gaza as a precondition for resuming normalization talks with Israel. (New York Post, New York Post, Reuters)
In a continued effort to strengthen regional ties, Saudi Arabia’s Foreign Minister Prince Faisal bin Farhan Al Saud met with his Iranian counterpart, Abbas Araghchi, in Jeddah. The meeting focused on expanding mutual relations and discussing key regional developments. This engagement reflects Saudi Arabia’s strategic shift towards fostering regional cooperation and reducing tensions with neighboring countries. (PressTV)
The Saudi Ministry of Interior announced the arrest of 15,928 individuals for violating residency, labor, and border security regulations between May 1 and May 7. The majority of those arrested were Ethiopian and Yemeni nationals. This crackdown underscores the kingdom’s commitment to maintaining internal security and regulating its labor market. (Gulf News)
Saudi Arabia’s industrial production index increased by 2% year-on-year in March, driven by strong growth in manufacturing sectors, particularly chemicals and food industries. This growth indicates progress in the kingdom’s efforts to diversify its economy beyond oil dependency, aligning with the objectives of Vision 2030. (Arab News, thetimes.co.uk)
