Saudi Arabia and Russia have been strengthening their economic ties, marking a significant milestone in their relationship. Nearly a century after the Soviet Union first established diplomatic relations with the Kingdom of Hijaz and Nejd, the modern leaders of both nations are continuing to build on this legacy. Crown Prince Mohammed bin Salman, appointed as prime minister by King Salman, and President Vladimir Putin, who has secured his leadership for the next six years, are fostering a stable partnership.
Historic Collaborations and Economic Synergies
In a historic event in 2017, King Salman’s visit to Moscow set the stage for a new era of cooperation between Saudi Arabia and Russia. This landmark meeting resulted in over 15 significant agreements across various sectors, including military, oil, and space exploration, valued at billions of dollars. Although a deal for Russia’s S-400 missile defense system was not finalized, the Kingdom’s strategic approach to diversifying its international relations was evident.
Russia views Saudi Arabia as a crucial ally in the global energy sector, a partnership that has become increasingly vital amid Western sanctions. The collaboration has been mutually beneficial, with OPEC+ agreements led by both nations, alongside the UAE, significantly boosting energy revenues. These agreements have been instrumental in enhancing Russia’s GDP, which saw a 28% increase in oil and gas revenues in 2022, while Saudi Arabia’s GDP rose from $874 billion in 2021 to $1.3 trillion in the subsequent year.
Expanding Opportunities Beyond Energy
Beyond energy, the economic synergy between the two countries is paving the way for diversification. Russian agricultural exports to Saudi Arabia surged by 49% in 2022, nearing the $1 billion mark. Moreover, the Kingdom has been invited to join the BRICS group, where Russia plays a pivotal role. This potential membership is viewed as an opportunity to expand economic collaboration, aligning with Saudi Arabia’s Vision 2030 goals.
Vision 2030 also opens avenues for integrating cultural and religious soft power into the partnership. As Saudi Arabia seeks to position itself as a central figure in the Muslim world, leveraging Russia’s Muslim regions could enhance bilateral relations. Initiatives like the pilot program for Islamic banking in Russia and potential sports investments, such as Saudi interest in Russian sports teams, illustrate the diverse possibilities for collaboration.
As these foundations solidify, both nations are poised to enhance their political, cultural, and economic integration. The future holds promising opportunities for Saudi Arabia and Russia, driven by shared interests and strategic collaborations.
