Donald Trump awarded more investment in the Persian Gulf in the United States

With US President Donald Trump, who is to visit the Gulf countries this week, a key focus will be to provide significant new investments for the US economy.

“President Trump wants the message (for more money than the Gulf of Persian),” says economist Karen Young, a senior contributor to the Institute of Brain Trust in the Middle East.

“He wants to have a big poster in a meeting that describes where these investments can go. And some evaluation of what they will do to the US economy regarding job creation or its large impetus, of course, for domestic production.”

Trump is due to arrive in the Saudi capital, Riyadh, on Tuesday on May 13, to meet with the country’s actual leader Crown Prince Mohammed bin Salman.

Trump is then expected to attend a meeting at the top of the Gulf leaders in the city on May 14, before traveling to Qatar the same day, and then ending his three -day trip to the United Arab Emirates (UAE) on May 15th.

The economic importance of the Trump region is emphasized by the fact that a visit to Saudi Arabia should be the first trip abroad of its second term in the White House. It was before Pope Francis’ deaths forced Trump to attend his funeral in Rome by the end of April.

Saudi Arabia was also the first country that Trump visited during his first term, opposing the modern practice of US presidents to begin with the United Kingdom, Canada or Mexico.

Providing new investments in the United States by Persian Gulf countries, and in particular their state state funds for wealth, will help Trump signal home that his America’s first program is achieving results.

The president’s visit attracts the top leaders of Wall Street and the Silicon’s Saudi Arabian Valley. The Saudi-US Investment Forum on May 13 in Riyadh will include CEOs from Blackrock, Palantir, Citigroup, IBM, Qualcomm, Alphabet and Franklin Templeton.

The pressure comes against the backdrop of economic winds, as the new tariffs for the import of President Trump have significantly violated global trade, confidence and the US economy itself. The US economic production fell in the first three months of this year, its first fall in three years.

Back in January, Prince Mohammed said Saudi Arabia would invest $ 600 billion (£ 450 billion) in the United States in the coming years. Trump, however, has already said it is like this to rise to $ 1tn, including purchases of more US military equipment.

According to Ali Shihabi, a Saudi commentator and author, with close ties with the Saudi government, a number of economic agreements will be signed during the trip.

“These deals will further integrate the Saudi and US economies, joint ventures in the kingdom, in the United States, products of US weapons and goods,” says G -N -Shihabi.

The Saudi Arabia Sovereign Fund, the PIFs Fund (PIF), which controls assets worth $ 925 billion, already has numerous investments in the United States. These include Uber, Electronic Arts and Lucid Electric Car.

In the meantime, the UAE is already committed to investing 1.4TN in the United States over the next 10 years in sectors such as AI, semiconductors, energy and production. This was announced by the White House in March after UAE National Security Advisor Sheikh Tahnun bin Zait Al Nahian met with President Trump in Washington.

Still, Da Young of the Middle East Institute says the scale of these investments is not realistic in the short term. Instead, she says that they are long -term strategic moves and that the figures should be taken “with a little grain salt”.

As for specific deals that could be announced during Trump’s visit, it is widely reported that Saudi Arabia will agree to buy more than $ 100 billion from the US and other military items.

They are said to include rockets, radar systems and transport aircraft.

The United States was a long -time arms supplier in Saudi Arabia, but in 2021, the then Biden administration stopped selling Riyadh’s offensive weapons, citing concerns about the role of the country in the war in neighboring Yemen.

The murder in 2018 by Saudi journalist Jamal Hashogi was also widely reported to be a factor. A US report says Prince Mohammed had approved the murder.

Biden’s White House resumed the sale of these weapons last year. As he quoted that the Saudis had stopped bombing Yemen, some commentators said the United States was seeking Saudi help to help end the gas conflict and assist his future reconstruction.

Sahabi says that Saudi Arabia will seek assurances from the White House, that the United States will apply a “more efficient public procurement system”, which allows the state in the Persian Gulf to gain access to ammunition and military equipment much faster and more easily.

“The Trump administration is launching procedures to facilitate these transactions. So this process is expected to be improved immediately,” he adds.

Artificial intelligence is the other topic that will dominate the agenda during the visit of G -N Trump. Conversations are expected to focus on attracting greater investment in the bay in US technology companies and strengthening the region’s access to avant-garde US semiconductors.

The UAE and Saudi Arabia are investing billions of dollars in technology and AI sectors as they are trying to diversify their economies away from oil.

In particular, Emiratis is willing to establish themselves as a global AI Hub.

Last week, the Trump administration defiled the Biden era rules that have set restrictions on the export of advanced chips to the United States to more than 120 countries, including the Gulf countries.

The White House is expected to prepare new rules that would potentially include direct negotiations with countries such as UAE.

“For the UAE, this is absolutely important,” says G -ja Young. “They aggressively build their AI capacity. So, because they gain access to American technology, it is imperative that it be the best.”

Although it will be a lot of attention to Trump to court the Persian Gulf capital to the United States, Saudi Arabia is equally focused on attracting US investment in its ambitious Vision 2030 program.

Led by giant construction projects, such as the construction of a linear city called the line, Vision 2030 is central to the continued efforts of the Saudi government to diversify the country’s economy away from oil.

It also includes pouring resources into entertainment, tourism, mining and sports.

However, foreign direct investment in Saudi Arabia decreased for the third consecutive year in 2024, reflecting the constant challenges of attracting overseas capital.

The decline in global oil prices since the beginning of the year has further tensed Riyadh’s finances, increasing pressure or raising the debt or reducing costs to maintain its development goals.

Oil prices have fell into a four -year level of the background of increasing fears that the trade war can reduce global economic growth.

The decline was further nourished by the group of countries randomly by oil, OPEC+by announcing plans to increase production.

Saudi Arabia is part of this group, and some commentators said the rise was partly wishing to please Trump, who has called for lower oil prices.

Other analysts have said the reason is more that OPEC+ remains confident that the global economy is growing.

The US-Saudi Business Council is an organization that aims to strengthen trade relations between the two countries.

We hope that Trump’s visit will push US business to explore more opportunities in Saudi Arabia, especially in sectors such as AI, healthcare and education.

“The Saudi government is looking a lot to invest in these sectors. There is a very large appetite for Saudi companies to cooperate with US companies,” says Hutaim al Jalal, who runs Riyadh’s office for the organization, before the BBC.

It is alleged that the Saudi officials are confident that some transactions in these sectors will be secured during a visit to Trump.

For Saudi Arabia, Trump’s visit is to strengthen ties with its long -term Western ally – a relationship that has unloaded over the years of Biden. For President Trump, it is a landing of investment deals that can be defined as a profit for his economic program.

“President Trump is looking for a major investment in America and he will get this trip,” adds G -Shhabi.