Trump Sets Gulf Nations Tour Amid Regional Tensions

Saudi Arabia has pledged a historic $1 trillion investment as Donald Trump plans to visit Saudi Arabia, UAE and Qatar. This would mark his first international trip after a potential second term. The Saudi pledge doubles their previous $450 billion investment promise during Trump’s first term. The mid-May diplomatic mission shows Trump’s preference for Gulf nations over traditional Western allies.

Trump’s economic diplomacy focuses on creating jobs through international investments. His long-standing relationships with Middle Eastern leaders, especially Crown Prince Mohammed bin Salman, have positioned Gulf nations to invest hundreds of billions in American industries. These nations have emerged as vital investment partners for the United States.

Trump Secures $1 Trillion Saudi Investment Pledge

_{Image Source: The Economic Times}

Saudi Arabia has pledged to invest $1 trillion in the United States, which marks a huge expansion in economic ties between both nations. Trump made this announcement as he gets ready to visit the kingdom to finalize this historic deal.

How Saudi Arabia Doubled Its Previous Commitment

Crown Prince Mohammed bin Salman (MBS) wanted to invest $600 billion in the American economy over the next four years back in January 2025. Trump wanted more. He told the World Economic Forum in Davos that he’d ask for more: “I’ll be asking the Crown Prince, who’s a fantastic guy, to round it out to around 1 trillion”.

Trump picked the Saudi Crown Prince as his first foreign call after taking office. During their talk, he pushed hard to get the kingdom to boost its investment. “I think they’ll do that, because we’ve been very good to them,” Trump said confidently.

The Saudi leadership’s choice to double their original commitment shows Trump’s strong personal bonds with key Middle Eastern leaders. MBS said the kingdom wants to “broaden its investments and trade with the United States”. He even hinted they might go beyond the trillion-dollar mark if they find good opportunities.

What started as a $600 billion pledge has turned into what Trump calls “a deal with Saudi Arabia” worth $1 trillion. This massive economic deal covers four years, though Saudi officials haven’t yet shared exactly how they’ll invest all that money.

What Industries Will Benefit from Gulf Investment

American industries stand to gain big from this trillion-dollar investment. Trump talked up the jobs this would create: “Tremendous jobs will be created in those two or three days” when he visits Saudi Arabia, the UAE, and Qatar.

Here’s where the money is likely to go:

• Defense and Military Equipment: The Saudis will probably spend lots on American military gear. They already rely heavily on U.S.-made weapons and defense systems.
• Technology and Innovation: Saudi wealth funds already own big chunks of American tech companies. They’ve put money into AI too, including $400 million in Elon Musk’s xAI.
• Energy and Manufacturing: The White House says Gulf nations will focus on energy infrastructure and manufacturing. This fits both American priorities and Saudi Arabia’s Vision 2030 plans.
• Infrastructure Development: While no specific projects are announced yet, infrastructure matches Trump’s economic plans perfectly.
• Trade Expansion: Beyond investments, both countries want more trade. Their trade hit $46.6 billion in 2022, with Saudi Arabia selling $23.3 billion, mostly oil.

This investment looks even more impressive since Saudi Arabia has its own big projects to fund. They’re building NEOM, a $500 billion new city in their western desert. They’re also getting ready to host Expo 2030 and the 2034 FIFA World Cup.

Yasir Al-Rumayyan, who runs Saudi Arabia’s Public Investment Fund (PIF), says they want to invest more in the U.S., but some rules have held them back. The PIF, now worth about $925 billion, would have to borrow heavily to make this happen.

Some experts doubt whether the full trillion dollars will materialize. Reports from March 2025 suggest the real number might end up between $100-200 billion. Still, it’s a huge economic partnership no matter what the final number is.

Saudi Arabia has actually pulled back some investments lately. They took out about $5 billion from U.S. investments between 2019 and 2023. In 2024, their wealth fund cut U.S. stocks by $15 billion – that’s 41 percent less in their U.S. stock portfolio.

Trump sees this deal as perfect for his economic goals. He wants American companies to benefit most and pushes for the Saudis to “purchase domestically manufactured US goods” to boost U.S. manufacturing. This matches his usual focus on creating American jobs through international deals.

Middle East Leaders Welcome Trump’s Return

Middle Eastern leaders have warmly welcomed Donald Trump’s return to the White House. Many look forward to stronger ties during his second term. Gulf nation officials rushed to congratulate the president-elect and highlighted their 10-year-old relationships and future cooperation plans.

Crown Prince MBS Strengthens Personal Connection

Trump’s relationship with Saudi Crown Prince Mohammed bin Salman (MBS) is the life-blood of U.S.-Saudi relations. Trump chose MBS as his first foreign leader call after taking office. Their conversation covered regional stability, security cooperation, and chances for economic growth.

Trump calls MBS “a fantastic guy” and “a great guy”, showing their friendly bond. MBS sees Trump as someone who understands Saudi Arabia’s importance in the region and shares similar goals. Their friendship grew during Trump’s first term when his son-in-law, Jared Kushner, connected both leaders.

Their bond stayed strong even during tough times. Trump publicly backed MBS when he imprisoned royal family members during his power grab. Later, Trump told journalist Bob Woodward about “saving” MBS from global criticism after Jamal Khashoggi’s murder.

Business deals make their connection even stronger. Trump’s golf courses host events for LIV, a golf league funded by Saudi Arabia’s sovereign wealth fund. A congressional oversight committee found that governments, including Saudi Arabia, paid millions to the Trump Organization during his first term.

UAE Ruler Extends Red Carpet

UAE President Sheik Mohamed bin Zayed Al Nahyan quickly sent “sincere congratulations” to Trump after his win. His social media message read: “The UAE looks forward to continuing to work with our partners in the US towards a future of opportunity, prosperity, and stability for all”. Dubai’s ruler Sheik Mohammed bin Rashid Al Maktoum also sent congratulations.

UAE’s enthusiasm comes from strong ties built during Trump’s first term. Sheik Mohamed bin Zayed (then Abu Dhabi’s Crown Prince) praised Trump’s choice of Saudi Arabia as his first foreign visit in May 2017, calling it “a powerful signal to the Islamic World”. Their White House meeting confirmed the “close UAE-US security partnership” and renewed their fight against extremism.

UAE officials trust Trump as a partner in handling regional security issues, especially Iran’s influence. A BBC report shows Gulf Arab countries see Trump as “a force for stability” while Europe worries about his unpredictable nature. UAE business leader Khalaf al-Habtoor said: “In a Middle East where security is paramount, Trump’s focus on strengthening alliances and curbing extremist forces offers a way forward”.

UAE leaders’ warm welcome also has practical business reasons. Watchdog reports show the UAE spent up to $10,000 nightly at Trump’s Washington, DC hotel from late 2017 to mid-2018.

Qatar Relationship Evolves Despite Pronunciation Jokes

Qatar and Trump’s relationship shows the biggest change among Gulf states. Qatar’s Emir, Tamim bin Hamad Al Thani, led other Gulf Cooperation Council leaders in congratulating Trump. He wrote that he looked “forward to working together again to strengthen our strategic relationship and partnership”.

This friendly tone marks a big change from past tensions. Saudi Arabia, the UAE, Bahrain, and Egypt started a blockade against Qatar in 2017, right after Trump’s Saudi visit. Trump initially backed this move, saying Qatar was “a funder of terrorism at a very high level”.

The relationship got better over time. Trump hosted Qatar’s Emir at the White House by April 2018, calling him “a friend of mine” who promotes the war on terror. This change happened after State and Defense Department officials explained Qatar’s strategic value.

A key moment came when Trump tried to arrange a call between Qatar’s Emir and Saudi’s Crown Prince to end the crisis. U.S. officials say Trump stepped in to stop possible military action against Qatar by Saudi Arabia and UAE.

Trump sometimes struggled with Qatar’s pronunciation, but their ties grew stronger. Qatar’s Al Udeid Air Base remains crucial as the main U.S. air operations center against ISIS.

Qatar took real steps to address U.S. concerns. They signed a counterterrorism agreement with the United States in July 2017, which the Emir mentioned to Trump during their meeting. These actions helped stabilize U.S.-Qatar relations despite regional challenges.

White House Prioritizes Economic Diplomacy Over Traditional Allies

Trump’s White House puts economic deals with Gulf nations ahead of traditional Western partnerships. His administration’s strategy is clear: use oil-rich nations’ wealth funds to boost American economic interests first, with diplomatic matters taking a back seat.

Why Trump Chose Gulf Nations First

Trump gravitates toward Gulf nations because of their massive financial resources and eagerness to invest in the United States. He takes a business-like approach and openly acknowledges the money factor. “The GCC remains a very important part of global politics, but its members’ real value to Trump comes from their huge sovereign funds and market potential for U.S. products,” one analysis points out.

This new direction marks a big change in foreign policy. Trump sees Middle Eastern relationships through a money lens, rather than focusing on security or democratic values that typically guide American diplomacy with European allies. His team sees Saudi Arabia and other GCC nations as “major economic and technological partners”. The region could become “much bigger than Europe” in its value to the United States.

Trump’s personal ties with Gulf leaders help seal these economic deals. His family’s business connections run deep throughout the region. Gulf sovereign wealth funds pour billions into American ventures linked to Trump’s inner circle. Saudi Arabia, Qatar, and the UAE have backed Jared Kushner’s private equity firm heavily. Abu Dhabi has hosted events featuring Eric Trump and the new U.S. special envoy to the Middle East.

Meanwhile, traditional Western allies get less attention. This shows how Trump breaks from usual diplomatic rankings. One source calls it “uncharted territory with a unilateral, economic-nationalist stance”.

How Investment Deals Create American Jobs

Trump’s Gulf-focused strategy shows real results in job creation across many sectors. UAE’s 10-year, AED 5.14 trillion investment plan targets growth in AI infrastructure, semiconductors, energy, and manufacturing. Emirates Global Aluminum plans to build “the first new aluminum smelter in the United States in 35 years” that would “nearly double U.S. domestic aluminum production”.

UAE’s wealth fund ADQ has teamed up with Energy Capital Partners on a AED 91.80 billion project for energy infrastructure and data centers. Dubai’s DAMAC Group plans to invest AED 73.44 billion in data centers across eight U.S. states, which will “create jobs for thousands of Americans”.

These investments could add 250,000 to 500,000 direct jobs in the next few years. Tech jobs might pay over AED 367,194 yearly, while manufacturing positions could range from AED 146,877 to AED 293,755. This targets middle-class job growth.

The economic rewards go beyond just jobs:

• Regional Revitalization: Rust Belt states like Ohio and Pennsylvania might see new life through manufacturing investments
• Multiplier Effects: Each direct job could create 2-3 more indirect jobs
• Labor Force Growth: U.S. labor force might grow by about 1%

Trump highlights these benefits as the life-blood of his economic plan. “I think his overall policies are pro-business,” says Emirati billionaire Hussain Sajwani, who plans major data center investments in the United States.

Trump promises to “accelerate regulatory processes for such big-ticket investments” and welcome foreign capital more openly. This practical approach – putting economic results before traditional alliances – defines Trump’s unique take on American foreign policy in the Middle East.

Trump’s planned Middle East trip represents a radical alteration in American foreign policy that prioritizes economic collaborations over traditional diplomatic alliances. His personal relationships with regional leaders have helped secure a remarkable $1 trillion Saudi investment pledge.

The President’s close ties with Crown Prince Mohammed bin Salman, UAE President Sheik Mohamed bin Zayed, and Qatar’s Emir Tamim bin Hamad Al Thani have delivered tangible economic benefits. Defense contracts and technology investments have created hundreds of thousands of American jobs in industries of all types.

Gulf nations now play a central role in U.S. foreign relations. Trump’s administration taps into the full potential of oil-rich Gulf states and their sovereign wealth funds instead of focusing on Western European allies. Investment frameworks targeting manufacturing, energy infrastructure, and technology development have already brought substantial returns.

Financial collaborations now drive Middle East relations more than diplomatic traditions. Trump’s upcoming visit could reinforce this approach and establish the Gulf region as America’s key source of foreign investment.