Goldman Sachs CEO David Solomon stated in an interview in Riyadh that the US economy is performing strongly and is expected to achieve a soft landing. He expressed concerns about the situation in the Middle East, especially the tense relationship between Israel and Iran. Solomon pointed out that despite potential changes due to the US elections, the trading environment is improving. He also mentioned that Goldman Sachs saw a 45% profit growth in the third quarter and opened a new office in Saudi Arabia to enhance its presence in the Middle East
In a wide-ranging and in-depth interview, Goldman Sachs CEO David Solomon discussed the fundamental resilience of the U.S. economy and the prospects for improving trading environment, while also expressing concerns about escalating conflicts in the Middle East.
On Tuesday, Solomon said in Riyadh, "The U.S. economy is performing quite well, very resilient. The fundamental situation of the U.S. economy is a soft landing." Solomon was attending the Future Investment Initiative conference in Saudi Arabia at the time.
Earlier this month, Goldman Sachs reported a 45% increase in third-quarter profits, driven by unexpectedly higher stock trading revenue and a rebound in investment banking. Solomon stated on Tuesday that despite the potential for changes due to the U.S. elections, " there is no doubt that the trading environment is improving."
At the same time, Solomon emphasized concerns about other regions of the world, including the Middle East, where tensions between Israel and Iran have reached their highest levels in decades.
Last weekend, Israel attacked military targets inside Iran, fulfilling Israeli Prime Minister Netanyahu's retaliatory promise for Iranian missile attacks.
Speaking about the situation in the Middle East, Solomon said, "I am somewhat concerned about this. It is detrimental to security, stability, and growth."
He added, however, that the conflict "has not had a significant impact on regional activities."
Solomon also warned of regulatory risks surrounding the upcoming U.S. elections. Polls show a neck-and-neck race between Harris and Trump.
"We have elections, followed by policy decisions that will impact the trajectory of 2025 and 2026," Solomon said, adding that the bank is prepared to support the new government and its clients regardless of the outcome.
"I am slightly concerned about the economic situation in Europe, but overall, the momentum of the U.S. economy is quite strong," Solomon said.
This week, top global financial leaders including Jane Fraser of Citigroup and Larry Fink of BlackRock also attended the Riyadh summit.
Earlier on Tuesday, Goldman Sachs unveiled a new office in the financial district of the Saudi capital, deepening its influence in the largest economy in the Middle East. With increasing competition between Riyadh and Dubai, attracting talent to Saudi Arabia or the Middle East is not difficult for Goldman Sachs.
He said, "I agree that there is more competition here, but in fact, this is a positive phenomenon. Economic activity levels are rising."
Solomon added that with expanding client interests, Goldman Sachs is in a favorable position in Saudi Arabia playing roles such as investment banking, trading, asset and wealth management companies