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Saudi Arabia Suspends Investments in US Due to Trump – WSJ

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Saudi Arabia has suspended its investments in the US so long as Riyadh finds out out how to work with the new US administration.

Saudi Arabia Suspends Investments in US Due to Trump – WSJ

US Secretary of State John Kerry speaks during his meeting with Saudi Arabia’s Foreign Minister Adel al-Jubeir (Photo: Reuters / Kevin Lamarque)

Saudi Arabia is going to rethink its “financial strategy” toward the US due to several factors, one of which is the election of billionaire Donald Trump as the country’s president, the Wall Street Journal reported, citing informed sources.

Riyadh will suspend its investment in the economy also due to changes in the US law, in particular, due to adoption of a bill by the Senate and the US Congress, which authorizes to prosecute states, which support terrorist activities on the territory of the US. According to the US government, Saudi Arabia is among such countries.

The Saudi sovereign fund has already suspended investments until the day comes when Riyadh finds out consequences, which may be caused by the approval of this bill, and figure out how to work with the new US administration.

According to the sources of the Wall Street Journal, the country’s authorities also contemplate initial public offering (IPO) of the Saudi largest state-owned oil company Saudi Aramco not only on the New York Stock Exchange, but also on the London Stock Exchange. This can happen in the next year or in 2018. The floatation of the company on the stock exchanges can attract $100 billion.

Representatives of the Saudi sovereign fund and Saudi Aramco declined to comment on this information.

Trump himself supported the adoption of this bill. The billionaire warned acting US President Barack Obama that if he put a veto on this bill, it will be “one of the worst moments of his presidency.”

On October 1, the first lawsuit since the adoption of the law, which caused a controversy between Saudi Arabia and the US, was filed by American Stephanie Ross DeSimone, whose husband lost his life during the terrorist attacks on September 11, 2001.

Riyadh warned the Obama’s administration that Saudi Arabia will sell the US assets valued at $750 billion, owned by the kingdom, in order to avoid their freeze, if Washington takes this law. The Saudi authorities have repeatedly rejected suspicions that terrorists received assistance from people, connected with the official authorities of the country.

Last week, the AP news agency reported that Trump closed a number of companies, among which may be several ones, associated with Saudi Arabia. The news agency noted that it was made in order to “avoid potential conflicts of interests” after the Trump’s inauguration. However, a representative of the billionaire said that it was an optimization of business.

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