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US President Donald Trump (R) and Saudi Arabian Deputy Arab Mohammed bin Salman al-S-Sow, participate in a bilateral meeting at a Riyadh hotel on May 20, 2017.
Mandel and | AFP | Ghetto images
Dubai, United Arab Emirates – US President Donald Trump will touch the Persian Gulf region – or As he can soon call it, the Gulf of Arabic – On May 13, for an official trip with stops in Saudi Arabia, Qatar and the United Arab Emirates.
The bets are high as the visits are held against the background of violent geopolitical tension. Negotiations will be negotiating on the cessation of Israel-Gaza, oil, trade, investment transactions and potential for the development of new policies in the field of advanced semiconductor exports and nuclear programs.
“We expect to see a lot of messages. And I think in a wide range of areas,” Monica Malik, Chief Economist at Abu Dhabi Commercial Bank, told Dan Murphy of CNBC on Friday. She noted the potential removal of 10% Trump’s aluminum and steel tariffs, which would be positive for Persian Gulf countries, as some of them export these metals in the United States, although they make up only a small percentage of countries’ GDP.
Trump has long been enjoying a warm relations with the Arab Gulf countries, more special, the UAE and Saudi Arabia, where his children have several business ventures and planned real estate projects. These relationships could strengthen the hands of the parties when it comes to negotiating new trade transactions – while provoking concerns among critics about potential conflicts of interest, accusing that Trump’s family rejects.
During the president’s initial term of office, his first trip abroad was in Saudi Arabia, which now hosts the negotiations Trump hopes to end the war in Russia-Ukrana, which makes the kingdom more important for Washington. In the meantime, Qatar has played a central role in the negotiations between Israel and Hamas over the termination of the arrest and launch of the hostages.
Wall Street and Ai in the Bay
The president’s visit attracts several Wall Street titans and the Silicon Valley of the Saudi Kingdom. Investment Forum in Saudi-Jash, announced this week and will be held on May 13 in Riyadh, will be attended by guests, including Blackrock Executive Director Larry Fink, Palantir Executive Director Alex Carp and the executive directors of large companies such as CitigroupIBM, QUALCOMM., AlphabetAnd Franklin Templeton, among others. The White House AI and Crypto Car David Sacks will also be present.
“We also expect to see many investment deals that are announced,” Malik said. “In both ways, we have already seen the UAE announce a number of investments in the United States in areas such as AI, Energy, Aluminium, but we also think there will be opportunities for US companies to increase investment.”
Both Saudi Arabia and Uh have invested seriously in AI infrastructure in order to become global technology centers. Therefore, the mind of these leaders is probably the future of the export of the semiconductor to the US, the most acclaimed of whom have not yet obtained access because of Concern for national security. But that may change soon.
Trump Administration on Wednesday declared his plan to cancel Biden’s era “AI’s diffusion rule”, which necessitated a strict control of the exports of advanced AI chips, even on the US -convenient nations. The rule will be replaced by “a much simpler rule, which unleashes American innovations and guarantees the dominance of US AI,” said a spokesman for the US Trade Department on Wednesday, although the details of the new rule have not yet been shared.
UAE -based AI company G42 has made efforts to comply with the US provisions, including to be released from Chinese companies and to partner with Microsoftwhich last year invested $ 1.5 billion in G42.
Nuclear ambitions
The Trump administration is actively involved in conversations with Iran because of its nuclear program – it says that the UAE and Saudi Arabia have expressed support. This enthusiasm marks a sharp contrast to the attitude of these countries to all the United States who have dealt with Tehran over the years of Obama.
At the same time, Saudi Arabia wants its own civil nuclear program and has asked the United States for approval and assistance in this direction. Any support in the US for Saudi nuclear program previously depends on Saudi Arabia’s normalizing diplomatic relations with us with us ally Israel – but this may change during this visit, According to media reports Referring to sources with knowledge on the subject.
US Secretary of Energy Chris Wright during a visit to the Kingdom in April said Saudi Arabia and the United States are on A A The “road” to a civil nuclear agreement – but that any additional messages will come from Trump himself.
Negotiations for Israel-Gaza
Another major topic will be the future of gas. Trump swore to end the war, while contradictory suggests that the United States could take control of the war -destroyed strip, which he described as “important real estate”, comments that attract strong rebukes from Arab leaders.
The United States continued to insist on fire termination deals, recently sailing a 21-day termination of hostilities and the release of some hostages, while Israel approved the expansion of the fight and territorial control in Gaza this week.
“We are just going to hear a comprehensive plan from the Arab world,” Greg Branch, founder of Branch Branch Global Capital Advisors, told CNBC on Friday while discussing Trump’s upcoming visit.
“If we are going to see an answer that will be Arabic, it is probably now or never,” Branch said. “I think this will be processed very delicately behind the scenes … Probably more than a long -term geopolitical risk of any immediate macro risk.”
Oil and funding
Branch suggested that raising US sanctions against Syria under his new government could also be discussed. In the meantime, it reports that the Trump administration will announce that the US Gulf renaming in the Arabian Gulf will be enthusiastic welcomed by the Arab countries, but may attract heavy anger from Iran during delicate nuclear negotiations with Tehran.
Oil prices will also be focused; Trump has long pushed OPEC countries, led by Saudi Arabia, to pump more oil to lower prices for US consumers. For a combination of reasons, Saudi Arabia does just that – but it may need to change the course in the coming months if prices remain muted, injuring the revenue of the kingdom.
In this sense, funding will be an important item on the agenda for the kingdom during Trump’s visit, according to ADCB Malik.
Saudi Arabia in November has promised to invest $ 600 billion in the United States for Trump’s term – but also has Heavenly high costs for your own vision 2030 Investment ambitions. Lower global oil prices and large-ticket public spending projects brought Expanding the budget deficit for Riyadh.
“With the oil prices where they are, Saudi will look at more funding support than America, and they seem to be advanced with their investment program,” Malik said.
Correction: This article has been updated to reflect the G42 status as a private technology company.