Saudi Arabia

Saudi Arabia is the United States' 9^th largest trading partner in goods, trading a total of $67 billion in 2008. The United States and Saudi Arabia entered into a Trade and Investment Framework Agreement (TIFA) in 2004, which established a formal dialogue to promote increased trade and investment between the two countries.

Trade in Goods

The U.S. goods trade deficit with Saudi Arabia was $42.3 billion in 2008, an increase of $17.1 billion from $25.2 billion in 2007. U.S. goods exports in 2008 were $12.5 billion, up 20.0 percent from the previous year. Corresponding U.S. imports from Saudi Arabia were $54.8 billion, up 53.8 percent. Saudi Arabia is currently the 23rd largest export market for U.S. goods.

Trade in Services

U.S. exports of private commercial services (i.e., excluding military and government) to Saudi Arabia were $3.3 billion in 2007 (latest data available), and U.S. imports were $509 million. Sales of services in Saudi Arabia by majority U.S.-owned affiliates were $537 million in 2004 (latest data available), while sales of services in the United States by majority Saudi Arabia-owned firms were $2.8 billion in 2006.

Investment

The stock of U.S. foreign direct investment (FDI) in Saudi Arabia in 2007 was $5.3 billion (latest data available), up from $4.7 billion in 2006. U.S. FDI in Saudi Arabia is concentrated largely in the nonbank holding companies sector.