Saudi Arabia Could Invest $20 Billion in US Infrastructure

Saudi Arabia Could Invest $20 Billion in US Infrastructure

The deal has many critics, however

According to a report, Saudi Arabia has signed an agreement with the Blackstone Group to commit $20 billion to upgrade existing infrastructure in the United States. Blackstone will raise an additional $20 billion for the same purpose.

The deal was announced during President Trump’s first visit abroad, and there are those who don’t buy into the deal.

“You have two financial interests here — obviously of the Saudi sovereign wealth fund which is putting the money in and wants to make money, and you have Blackstone which is in the business of making money,” said Arash Massoudi, who has reported on Saudi investments for the Financial Times. “They're going to target deals where they can make money for themselves, ultimately.”

What’s unusual about the deal is the fact that Blackstone’s CEO Steve Schwarzman is the chairman of the White House Strategic and Policy Forum.  This deal, which could have easily been influenced by the president’s visit to Saudi Arabia, would be a clear conflict of interest.