Goldman Sachs CEO David Solomon has expressed optimism regarding the resilience of the United States economy, suggesting a soft landing amidst global economic uncertainties. He noted that while the US economic performance shows significant strength and improved trading prospects, geopolitical tensions, particularly in the Middle East, pose potential concerns.
Speaking at the Future Investment Initiative (FII) summit in Riyadh, Solomon highlighted the heightened tensions between Israel and Iran, a situation that has escalated recently. Despite these tensions, Solomon remarked that the ongoing conflict has not yet significantly impacted regional business activities.
Goldman Sachs is strengthening its presence in the Middle East, having opened a new office in Saudi Arabia. As the first major international bank to obtain a regional headquarters license in Saudi Arabia, Goldman Sachs is set to open a new office in the King Abdullah Financial District next year, demonstrating its commitment to expanding in the region.
Solomon is optimistic about the future of investment banking, particularly in the technology sector, where innovations in artificial intelligence drive merger and acquisition activities. Although regulatory challenges exist, he believes that upcoming elections could bring favorable changes.
Goldman Sachs reported a 45% year-on-year increase in third-quarter profits, attributed to an unexpected rise in equity trading income and a rebound in investment banking. While potential changes from the US elections loom, Solomon affirms that the trading environment is showing signs of improvement.
