Bloomberg Talks — Goldman Sachs CEO Talks Saudi Arabia and US Economy

Date: October 28, 2025
Guest: David Solomon, CEO of Goldman Sachs
Host: Bloomberg

Episode Overview

In this episode, Goldman Sachs CEO David Solomon joins Bloomberg to discuss the firm's expanding initiatives in the Middle East, particularly Saudi Arabia and Kuwait, and provides his perspectives on the current state of the US economy, future of interest rate moves, credit markets, and the transformative role of AI in finance. The conversation offers candid insight into Goldman's global strategy, the evolution of capital flows in the GCC, and how technology is reshaping the banking landscape.

Key Discussion Points and Insights

1. Goldman Sachs' Expansion in Saudi Arabia and the GCC

• Regional Growth Strategy:
  • Goldman Sachs is significantly increasing its presence in the region, especially in Saudi Arabia.
    • Opened a new office in Saudi Arabia in 2025, growing from 20 to an anticipated 60 employees.
    • Recently launched a high-end private wealth business targeting the region.
  • The firm is positioning itself as a central player in upcoming capital markets transactions and infrastructure investments.
• Quote:
  • "We've been here for a while, but we've certainly been investing and expanding... We're probably headed to about 60 [employees], and the big reason for that expansion is... our high end private wealth business here in the region." — David Solomon (00:43)
• Partnerships with Local Entities:
  • Recent partnerships with the Saudi Public Investment Fund (PIF) in asset management.
  • "We're just at a moment in time where they have the capacity to do many more interesting things to build their economies." — Solomon (04:36)

2. On-the-Ground Presence and Relationship Building

• Importance of Local Offices:
  • Solomon emphasizes the vital role of physical presence in building trust and long-term relationships with both governments and sovereign wealth funds.
  • "Showing up matters... Human to human contact is not going away." — David Solomon (03:46)
• Shift in Capital Dynamics:
  • Historically, capital from the GCC was merely exported; now, these countries seek to develop local investment infrastructure and economic growth.
  • "What they need are ideas... liquidity and capital... We’re just at a moment in time where they have the capacity to do many more interesting things to build their economies." — Solomon (04:36)

3. Emerging Opportunities: Alternative Assets and AI Innovation

• Investment Trends:
  • Anticipates significant increases in on-the-ground investment opportunities, especially in private assets and infrastructure.
  • AI noted as an area of strategic investment and exportable expertise for the region.
  • "I do think one of the things that's interesting is AI and the ability for there to be AI infrastructure here that can be used and can be exported to different places in the region." — Solomon (02:14)

4. US Economic Outlook and The Fed

• Current State of the Economy:
  • US markets are strong, with Goldman's performance reflecting strategic reorientation over the past 5-7 years.
  • The firm’s asset and wealth management business now supervises $3.5 trillion and is growing faster than anticipated.
  • "We've said publicly we think it can grow... high single digits... and the combination of those activities has materially uplifted the returns of the firm." — Solomon (06:37)
• Interest Rates and Policy:
  • Views the upcoming Fed rate cut as a shift towards neutrality rather than the start of a full easing cycle.
  • Urges caution in making forward projections due to economic uncertainties.
  • "Just because there's a forward projection, it doesn't mean that's where we wind up. Uncertainty, there's a lot of uncertainty." — Solomon (08:09)

5. Income Inequality and Economic Cycles

• K-Shaped Economy?
  • Disagrees with the term but acknowledges weaker economic conditions for lower-income earners, especially with persistent inflation.
  • "Inflation is very, very difficult for people who live paycheck to paycheck... it's important that we get inflation back to target." — Solomon (09:09)
• Credit Market Risks:
  • Recent bad credit situations seen as isolated (“idiosyncratic”), but cautions that a credit cycle with broader losses will come eventually.
  • "We’ve been in a very, very long, easy credit cycle... I don’t see anything... leading me to say that we have a systemic issue around the corner." — Solomon (10:31)
• Private Credit Evolution:
  • The true returns in credit are made during downturns, not just when spreads are tight.
  • "The real alpha for credit market participants comes in the tough cycles..." — Solomon (12:26)

6. US Dollar and Global Investment Status

• Dollar Weakness and US Exceptionalism:
  • Despite dollar depreciation, the US remains the world's most attractive investment destination due to its size and tech leadership.
  • "I don't worry about the US and its preeminence as an attractive place to invest... the tech innovation ecosystem, you know, I think the US is, is in a pretty good place." — Solomon (13:42)

7. Artificial Intelligence: Transformation and Job Impacts

• AI as a Productivity Driver:
  • Goldman recently announced "Goldman Sachs 3.0" with AI as a cornerstone for client service, efficiency, and risk management.
  • "The productivity opportunity... is enormous. We are looking at a handful of processes where we can... create automation and efficiency, but not just to take cost out — to allow us to invest in growth." — Solomon (14:50)
• Job Implications:
  • Expects technology and AI will change, but not eliminate, the need for talent, especially in client relationships and advisory.
  • "You can teach investment banking skills, but you can't teach relationship building, trust, advice giving... that's a apprenticeship skill based business and that's something that I think is very sustainable." — Solomon (17:08)

Notable Quotes & Memorable Moments (with Timestamps)

| Time | Speaker | Quote | |-----------|-----------------|--------------------------------------------------------------------------------------------------------| | 00:43 | David Solomon | "We're probably headed to about 60 [employees], and the big reason for that expansion is our high-end private wealth business here in the region." | | 03:46 | David Solomon | "Showing up matters... Human to human contact is not going away." | | 04:36 | David Solomon | "What they need are ideas. What they need are liquidity and capital. What they need is strategic initiatives." | | 06:37 | David Solomon | "We've said publicly we think [Asset and Wealth Management] can grow... high single digits... and the combination... has materially uplifted the returns of the firm." | | 09:09 | David Solomon | "Inflation is very, very difficult for people who live paycheck to paycheck... it's important that we get inflation back to target." | | 10:31 | David Solomon | "I don’t see anything... leading me to say that we have a systemic issue around the corner." | | 12:26 | David Solomon | "The real alpha for credit market participants comes in the tough cycles..." | | 13:42 | David Solomon | "I don't worry about the US and its preeminence as an attractive place to invest... I think the US is, is in a pretty good place." | | 14:50 | David Solomon | "The productivity opportunity... is enormous... create automation and efficiency, but not just to take cost out — to allow us to invest in growth." | | 17:08 | David Solomon | "You can teach investment banking skills, but you can't teach relationship building, trust, advice giving... that's a apprenticeship skill based business." |

Key Segment Timestamps

• 00:22 – 02:44: Goldman’s initiatives and vision in Saudi Arabia & GCC, including expansion rationale and partnerships.
• 02:44 – 03:46: Historical context of Goldman's engagement in Kuwait and strategy for the region.
• 03:46 – 04:36: The necessity of physical presence and local relationship-building.
• 05:44 – 06:37: Evolving investment flows; local economic participation; outlook on alternatives.
• 06:37 – 08:09: Discussion shifts to US economy, firm strategy, and resilience to cyclical changes.
• 08:09 – 09:09: Perspectives on the Fed, inflation, and uncertainty in forecasting.
• 09:09 – 10:31: Debate on income inequality, impact on lower-income Americans, and credit market fragility.
• 10:31 – 12:26: Credit cycles, systemic risk versus idiosyncratic events, and private credit landscape.
• 13:24 – 13:42: Dollar weakness, US economic standing, and views on global capital flows.
• 14:40 – 17:40: The impact of AI—efficiency, innovation, and future of work in financial services.

Tone and Style

David Solomon’s responses are measured, pragmatic, and forward-looking, often contextualizing today’s challenges within long-term cycles. He balances optimism for market opportunity and technology with caution regarding uncertainty and economic realities. The interviewer maintains a well-informed, engaging tone rooted in current market events and strategic trends.

This summary captures the major themes, insights, and quotes from the conversation, providing a comprehensive guide for anyone seeking to understand Goldman Sachs’ vision in Saudi Arabia, perspectives on global markets, and how AI is shaping the future of finance.