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3. Saudi Arabia: Peace Mediator or Economic Strategist?

By hosting talks between the United States and Ukraine, Saudi Arabia seeks to establish itself as an essential mediator in global affairs. Traditionally recognized as a key player in the energy sector due to its vast oil reserves, the kingdom now aspires to expand its influence beyond energy. By facilitating peace negotiations, it demonstrates its ability to play a major diplomatic role, particularly in large-scale geopolitical conflicts like the war in Ukraine.

This initiative aligns with the strategic vision of Crown Prince Mohammed bin Salman (MBS), who launched the Vision 2030 project to diversify the country's economy and reduce its dependence on oil.

A Key Player in a Changing Global Landscape

Participating in large-scale international diplomatic initiatives allows Saudi Arabia to position itself as a central actor in shaping a new global order. One of the driving forces behind this mediation effort is the kingdom’s desire to strengthen its relationships with major global powers, particularly the United States and the European Union, in order to diversify its economic partnerships.

The war in Ukraine has disrupted global geopolitical and economic balances, especially concerning energy prices, supply chains, and international investments. By taking on a central role in negotiations, Saudi Arabia aims to bolster its status as a key energy supplier while also attracting foreign investments in non-oil sectors. The kingdom seeks to expand its revenue sources by developing industries such as technology, tourism, manufacturing, and agriculture—sectors that would benefit greatly from strong partnerships with global economic powers.

Improved ties with Ukraine and the United States could also pave the way for Saudi investments in infrastructure and reconstruction projects in Ukraine, responding to the devastation caused by the war.

Strategic Positioning

Despite its diversification efforts, energy remains at the core of Saudi Arabia’s strategy. As a dominant force within the Organization of the Petroleum Exporting Countries (OPEC), the kingdom continues to play a critical role in regulating global oil supply and demand.

Saudi Arabia leverages its position to ensure global energy security while safeguarding its own economic interests. The conflict in Ukraine has significantly disrupted global energy flows, and by supporting negotiations for a political resolution, Saudi Arabia aims to position itself as a stabilizing force in the global energy market. By facilitating dialogue between the US, Ukraine, and other key players, the kingdom may secure concessions on future energy policies and expand its exports to crucial markets.

At the same time, Saudi Arabia is using its mediator role as a means to diversify its economy. By taking on a central role in conflict resolution, it hopes to attract European, American, and Asian investors looking for opportunities in emerging sectors. Partnerships with Ukrainian companies, as well as international firms interested in Ukraine’s reconstruction, could pave the way for large-scale projects—not only in Ukraine but also across the Gulf region.

Saudi Arabia is actively working to strengthen its geopolitical influence and diversify its economy beyond oil, all while solidifying its relationships with global economic powers. This diplomatic initiative could have direct implications for energy security and investment opportunities, benefiting not just Saudi Arabia but also the wider Gulf region and beyond.