US tariffs may trigger a 'global depression'

Staff Reporter, Gulf Today

Prince Alwaleed Bin Talal Al Saud, Chairman of Kingdom Holding Company, has revealed to Forbes Middle East his perspectives on trade wars, AI dominance, and the evolving definition of leadership in an increasingly complex world.

The Prince, who shares a personal acquaintance with the US President Donald Trump, spoke candidly: “These tariffs are tantamount to paralysis. A 145% tariff on China? That’s not negotiation—that’s a freeze in trade.” While acknowledging Trump’s political instincts, he issued a stark warning about the risks of economic brinkmanship: “This could’ve triggered not just a recession, but a worldwide depression.”

Prince Alwaleed shared why he continues to back Elon Musk, even amid recent criticism of Tesla. “When Musk took over Twitter, I didn’t cash out—I doubled down,” he said. “We’re betting on the right horse. That horse is Musk.”

He confirmed a recent two-hour investor call with Musk discussing a potential merger between X and xAI: “He is managing business and politics—and doing both. I was on the call. It’s happening.”

On artificial intelligence, Prince Alwaleed stressed its sweeping impact across sectors: “AI will impact every industry. If you don’t adapt, you’ll be left behind.” He also recalled a conversation with Bill Gates about the disruption of both white- and blue-collar jobs: “New opportunities must be created. This is only the first inning of the revolution.”

Turning to Saudi Arabia’s current transformation, Prince Alwaleed described it as both historic and personal: “This is a revolution—and we are back to normal,” he said, referring to the Kingdom’s sweeping social reforms. He praised Vision 2030, identifying tourism and mineral wealth as the Kingdom’s new economic engines. “We have everything here—the beaches, the valleys, the archaeology. And it’s working. We’re already welcoming tens of millions of tourists... without alcohol.”

Looking ahead, he expressed confidence in the country’s shift toward economic diversification: “We are creating new income streams, and I believe that within five years, Saudi Arabia’s budget will be powered by non-oil revenues.”

He also revealed that he has already donated $5 billion through Alwaleed Philanthropies, underscoring his long-standing commitment to giving. “I began charity on the same day I began business—January 1st, 1980,” he said.

As Saudi Arabia’s youth rises to the forefront of transformation, Prince Alwaleed offers clear advice: “Our society is young—and incredibly empowered. With AI and the internet, they know everything. Stay attentive and move with speed.”