On November 16 at Madison Square Garden, a star-studded crowd gathered to watch Jon Jones defend his UFC title against former champion Stipe Miocic. Despite the much-anticipated fight, much of the night’s energy was directed at the presence of President-Elect Donald Trump. In one of his first public appearances since the election, Mr. Trump walked out to a raucous crowd flanked by many of his closest allies. He sat beside Elon Musk, and on his other side sat Yasir O. Al-Rumayyan, the Chairman of Aramco’s Board of Directors and the Governor of the Public Investment Fund (PIF).
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Al-Rumayyan manages a sovereign wealth fund with $925 billion in assets and is one of the most powerful businessmen in the world and a liaison to the Middle East’s largest oil producer.
Al-Rumayyan’s Rise to Power
Yasir Al-Rumayyan has become one of the world’s most powerful financial figures, mainly from his relationship with Crown Prince Mohammed Bin Salman. A prominent financial figure in Saudi Arabia, Al-Rumayyan was appointed Managing Director of the Kingdom’s Public Investment Fund months after Bin Salman’s promotion to Deputy Crown Prince. After 2017’s governmental upheaval, which resulted in Bin Salman’s promotion to Crown Prince, Al-Rumayyan became a powerful loyalist, working to consolidate companies and assets into the PIF.
Through his alliance with the Crown Prince, Al-Rumayyan has grown the Public Investment Fund into the world’s largest sovereign wealth fund and has been named Chairman of Aramco, Saudi Arabia’s national oil company and the largest energy company in the world.
Saudi Arabia’s Ambitious Economic Plan
The PIF markets and investment portfolio align with Saudi Arabia’s Vision of 2030, an ambitious blueprint to transform the country into “a diversified, innovative, and world-leading nation.” With economic endeavors concentrated on private sector growth independent from oil and natural gas revenue, Yasir Al-Rumayyan and the PIF will play an increasingly crucial role in this plan.
American Market Implications
With the high-profile alliance between Mr. Al-Rumayyan and President-Elect Trump, the two countries look to tighten business and security agreements. With pro-fracking figures such as Liberty Energy CEO Chris Wright and former House Representative Lee Zeldin occupying the cabinet, Mr. Trump looks to make good on his “drill, baby, drill” promise. Currently, the likelihood is that the two parties (Americans and Saudis) will find demand from the European Union, whose natural gas and gasoline prices have soared since the advent of the Russia-Ukraine war.
Regarding the ongoing war in Eastern Europe, EU Chief Ursula Von der Leyen has suggested transitioning from Russian to American natural gas may become more cost-effective in a friendlier domestic production climate. If these deals come to fruition, a company such as TotalEnergies (TTE), the largest U.S. exporter of LNG, may see skyrocketing demand and revenues.
Saudi Market Implications
Another factor that will play a big role in this forthcoming development is Iran. Saudi Arabia, the world’s second-largest oil producer, has long held hostilities against Iran, which holds the fourth-largest oil reserves in the world and represents the largest threat to Saudi dominance in the industry. With a Donald Trump administration threatening with crushing oil sanctions upon Iran and its terror proxies, Saudi Arabia stands to benefit and seeks to take advantage. The Saudis have already abandoned a $100 Crude Oil price target, a policy change suggesting higher production in the coming year.
Through a partnership between the two nations, the Saudis and Americans seek an alliance that will undercut their rivals Iran and Russia. As evidenced by a public meeting cage-side at UFC 309, discussions are underway.
Conclusion
In conclusion, the high-profile meeting at UFC 309 underscores the strengthening alliance between President-Elect Donald Trump and Yasir Al-Rumayyan. This partnership signals potential shifts in global economic and energy landscapes, with significant implications for American and Saudi markets. As the two nations navigate their shared interests, the world watches closely.
