David Solomon, CEO of Wall Street investment bank Goldman Sachs, recently attended the Future Investment Initiative forum in Saudi Arabia for an interview and discussed the U.S. economy, global investment environment, and conflicts in the Middle East. He is optimistic about the resilience of the U.S. economy and says there is an opportunity for a "soft landing." He is optimistic about the increase in investment and M&A activities, but is also concerned about the increasingly tense geopolitical situation in the Middle East.
US economy soft landing and risk concerns
Solomon said the U.S. economy is highly resilient and has the opportunity for a "soft landing." He believes that the U.S. economy is strong and is expected to continue to grow in fields such as technology, AI, and medical care. In the face of the upcoming US presidential election, he said that the election results will determine the policy direction in 2025 and 2026.
In addition, he emphasized that Goldman Sachs' equity trading performance has been strong this year and mentioned that the increase in trading activity shows that the investment market is gradually recovering. According to Goldman Sachs' third-quarter report, profits rose 45%, driven mainly by revenue growth from stock trading and a rebound in investment banking, with net income reaching $3 billion, a significant increase from $2 billion in the same period last year.
Aggressively expanding business in the Middle East, concerned about conflicts between Israel and Iran
Solomon announced that Goldman Sachs will open a new office in the Saudi Arabian capital Riyadh to strengthen its business presence there. As IPO and M&A activity increases in Riyadh, he noted that international investors are quite interested in the local market, and Goldman Sachs is ready to further expand its business in the Middle East, including investment banking, trading and asset management. Solomon added that as competition between Saudi Arabia and Dubai heats up, local financial activity increases, providing a better foundation for Goldman Sachs' local development.
Solomon is concerned about the growing conflict between Israel and Iran. He said that despite the unstable situation, local business activities have not been significantly affected, and he hopes that leaders of various countries can find solutions in the future to promote peace and stability in the Middle East.
Goldman Sachs unrivaled in private credit
Solomon also highlighted Goldman Sachs' long-term investment in private credit, saying this is an area that continues to grow. He said: "Goldman Sachs has been operating in the private credit field for more than 30 years and currently has US$140 billion in private credit assets under management. Our strong issuance and management capabilities are one of our characteristics." He believes that there are great opportunities for growth in private credit. Especially when facing broader investment needs, Goldman Sachs is bound to be an important player in this market.
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