Saudi Arabia and the US have seen steadily growing economic ties throughout a relationship spanning more than 80 years, beginning with oil and expanding to defense and technology in recent years.What began as a reliance on oil and gas has expanded to more diverse economic collaboration built on Vision 2030 initiatives.Economic cooperation between the two nations was solidified in the early 1930s when King Abdulaziz granted the right of oil exploration to the American company Standard Oil through a 66-year contract. This led to the formation of the Arabian-American Oil Company, better known as Aramco.Saudi Arabia and the US signed an interim diplomatic trade agreement in 1932, establishing an initial framework for trade, according to the Saudi Press Agency.
Aramco’s Dammam Well No. 7 struck commercial quantities of oil in 1938, ushering in a new age in the Kingdom’s development.In the early 1970s the two countries deepened their trading relationship. In 1972, the value of the Kingdom’s imported goods and materials from the US was $314 million, and the Kingdom’s exports were $194 million.Economic relations between the two countries were underlined in June 1974 through the formation of the US-Saudi Arabian Joint Commission on Economic Cooperation, which provided US expertise to develop infrastructure to advance Saudi Arabia’s non-oil economic development.
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