Goldman Sachs CEO David Solomon recently attended the “Future Investment Initiative” forum in Saudi Arabia and discussed the US economy, global investment environment, and Middle East conflicts. He is optimistic about the resilience of the US economy, stating that there is a chance of a “soft landing.” He also expressed optimism about the increase in investment and merger activities but expressed concerns about the escalating geopolitical tensions in the Middle East.
Expectation of a Soft Landing for the US Economy
Solomon stated that the US economy has strong resilience and the potential for a “soft landing.” He believes that the US economy has strong momentum and is expected to continue growing in areas such as technology, AI, and healthcare. With the upcoming US presidential election, he stated that the election result will determine the policy direction in 2025 and 2026.
Furthermore, he emphasized the strong performance of Goldman Sachs’ equity trading this year and mentioned that the increase in trading activities indicates a gradual recovery of the investment market. According to Goldman Sachs’ third-quarter report, profits increased by 45%, mainly driven by the growth in revenue from stock trading and the rebound in investment banking, with net income reaching $3 billion, a significant increase compared to $2 billion in the same period last year.
Actively Expanding Middle East Business, Concerned about Israel-Iran Conflict
Solomon announced that Goldman Sachs will open a new office in Riyadh, the capital of Saudi Arabia, to strengthen its business presence in the region. With the increasing IPO and merger activities in Riyadh, he pointed out that international investors are very interested in the local market, and Goldman Sachs is prepared to further expand its business in the Middle East, including investment banking, trading, and asset management. Solomon added that with the increasing competition between Saudi Arabia and Dubai, financial activities in the region are growing, providing a better foundation for Goldman Sachs’ local development.
Solomon expressed concerns about the escalating conflict between Israel and Iran. He stated that despite the unstable situation, local business activities have not been significantly affected, and he hopes that the leaders of various countries can find solutions in order to promote peace and stability in the Middle East.
Goldman Sachs Excels in Private Credit Sector
Solomon also emphasized Goldman Sachs’ long-term investment in private credit, stating that it is a continuously growing sector. He said, “Goldman Sachs has been operating in the private credit sector for over 30 years and currently manages $140 billion in private credit assets. Our strong issuance and management capabilities are one of our distinguishing features.” He believes that there are great growth opportunities in private credit, especially in the face of broader investment demands, and Goldman Sachs is poised to be a significant player in that market.