Trump Pursues Business Deals with Gulf States

RIYADH, TUESDAY - United States President Donald Trump is targeting business agreements with Saudi Arabia, Qatar, and the United Arab Emirates. Trump began a four-day visit to the Middle East with his first destination being Riyadh, Saudi Arabia, on Tuesday (13/5/2025).

The focus of his visit is likely to be on economic agreements rather than attempting to unravel security crises such as the war in Gaza and the threats of escalation regarding Iran's nuclear program. Trump is accompanied by U.S. Treasury Secretary Scott Bessent and several U.S. business figures, including Tesla CEO Elon Musk, Blackrock CEO Larry Fink, and Blackstone CEO Stephen A. Schwarzman.

Crown Prince Mohammed bin Salman, the de facto ruler of the Kingdom of Saudi Arabia, warmly welcomed Trump as he disembarked from Air Force One at King Khalid International Airport.

The two leaders then returned to the grand hall at Riyadh airport, where Trump and his aides were served traditional Arabic coffee. They then had lunch at the Royal Court alongside guests in a room adorned with blue accents and large crystal lights.

Saudi Arabia and other OPEC+ countries assisted Trump at the beginning of his second term by increasing oil production. Trump considered cheap energy a key component in reducing costs and curbing inflation for American citizens.

For Trump, lower oil prices will accelerate the end of the Russia-Ukraine war. However, the Saudi economy is still heavily reliant on oil, and Saudi Arabia requires a fiscal breakeven oil price of 96-98 US dollars per barrel. This is necessary to balance its budget.

"One of the challenges for Gulf countries from lower oil prices is that it does not immediately jeopardize economic diversification programs, but it certainly makes it more difficult," said Jon Alterman, a senior Middle East analyst at the Center for Strategic and International Studies in the United States.

Trump chose Saudi Arabia as his first stop on his visit because Saudi Arabia promised massive investments in the United States. Riyadh also became Trump's first overseas stop during his first term in office.

Saudi Arabia, Qatar, and the United Arab Emirates (UAE) are locations where the Trump Organization - managed by two of Trump's sons - is developing residential and luxury resort projects. These projects include a high-rise tower in Jeddah, a luxury hotel in Dubai, and a complex of golf courses and villas in Qatar.

Trump is expected to bring home agreements with the three wealthy countries regarding artificial intelligence technology, expand energy cooperation, and new arms sales. Earlier this month, the United States announced preliminary approval for the sale of air-to-air missiles worth 3.5 billion US dollars for Saudi Arabian fighter jets.

During his first visit to the Middle East, Trump did not visit Israel. According to William Wechsler, Senior Director of the Rafik Hariri Center and Middle East Program at the Atlantic Council, Trump's decision not to visit Israel is remarkable.

"The message that I want to convey is that currently, the countries in the Gulf are actually more important allies for Trump than Israel," he said.

Meanwhile, Trump hopes to resume efforts to normalize relations between major countries in the Middle East, Israel, and Saudi Arabia, as he did during his first term. Trump's efforts to achieve the Abraham Accords led Sudan, the UAE, Bahrain, and Morocco to agree to normalize relations with Israel.

However, Saudi Arabia has explained that in exchange for normalization, they seek security guarantees from the United States, assistance for the kingdom's nuclear program, and progress towards a Palestinian state.

Prince Mohammed, last week, hosted Palestinian Vice President Hussein al-Sheikh in Jeddah. A researcher at the Foundation for Defense of Democracies, Hussain Abdul-Hussain, suspects that Prince Mohammed subtly signaled to Trump that Saudi Arabia desires progress in the establishment of a Palestinian state first before seriously discussing normalization agreements with Israel.

"Saudi Arabia also does not want the US to think that Saudi Arabia is willing to normalize," he said.

In Saudi Arabia, Trump will attend the Saudi-US Investment Forum. Trump also plans to visit Turkey and meet face-to-face with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy in that country to discuss the Russia-Ukraine war.

At an investment forum in Riyadh, before Trump arrived in Saudi Arabia, Blackrock CEO Larry Fink recounted that he had visited Saudi Arabia more than 65 times over the past 20 years.

Saudi Arabia, Fink stated, became its "follower" when he first visited. However, now Saudi Arabia has taken control and expanded its economy from its oil wealth.

Saudi Investment Minister Khalid al-Falih, while opening the forum, stated that the energy sector remains the foundation of Saudi-US relations. However, investments and business opportunities in Saudi Arabia have expanded and multiplied. "When Saudi Arabia and the US collaborate, good and great things can happen," he said.

Saudi Arabia and the United States have maintained a strong relationship for several decades based on a robust arrangement in which Saudi Arabia supplies oil and the United States provides security.

The United States, Saudi Arabia, Qatar, and the UAE are expected to announce investments that could reach trillions of US dollars. Saudi Arabia committed to investing 600 billion US dollars in the United States last January over the next four years. However, Trump will request an investment worth one trillion US dollars.

The U.S. Secretary of State and National Security Advisor Marco Rubio and Secretary of Defense Pete Hegseth will travel with Trump. According to sources from the Reuters news agency, Trump is expected to offer Saudi Arabia a weapons package worth more than 100 billion U.S. dollars.

This may include various advanced weapons, including C-130 transport aircraft. The source also stated that the US and Saudi Arabia are expected to avoid the topic of normalization between Riyadh and Israel, even though it is Trump's geopolitical goal in the region.

Trump's envoy to the Middle East, Steve Witkoff, expressed hope last week for progress in expanding the Abraham Accords. The Accords are a series of agreements promoted by Trump during his first term. In these agreements, Arab countries including the UAE, Bahrain, Sudan, and Morocco recognized Israel.

White House spokesperson Karoline Leavitt stated that Trump will promote a vision where extremism is defeated in exchange for trade and cultural exchange. Gulf countries have positioned themselves as key diplomatic partners during Trump's second term.

Doha remains the primary mediator for negotiations between Hamas and Israel, while Saudi Arabia has facilitated discussions regarding the war in Ukraine. (REUTERS/AFP/AP)