Trump visits Saudi Arabia with a view of growing investments in the United States

A major priority will be obtaining substantial new investment for the US economy, as US President Donald Trump visited Gulf states a few days ago.

“President Trump wants the announcement [of more Gulf money for the US,]” comments Karen Young, a senior fellow at the Middle East Institute think tank, who is an economist.

Remarkably, he planned to display a large poster at a meeting detailing the potential impact of these investments on the American economy, including job creation and his emphasis on domestic manufacturing.

Gulf Tour: Trump's Historic Arrival Significance

On Tuesday, May 13, Trump landed in Riyadh, the capital of Saudi Arabia, to meet with Crown Prince Mohammed bin Salman, the de facto ruler of the nation.

Trump then travelled to Qatar on May 14 and concluded his three-day visit to the United Arab Emirates (UAE) on May 15 after attending a summit of Gulf leaders in the city on May 14.

Moreover, Trump's visit to Saudi Arabia was his first overseas trip in his second term, prior to Pope Francis's funeral in Rome, highlighting the region's economic importance to him, as it was the first overseas trip of his second term.

Previously, Trump visited Saudi Arabia first during his first term, a departure from the traditional US president's first visit to the UK, Canada, or Mexico. He has planned to secure new investments from Gulf states, particularly state-backed sovereign wealth funds, to demonstrate the success of his “America First” agenda.

Notably, the presidential visit attracted prominent Wall Street and Silicon Valley executives to Saudi Arabia, with a Saudi-US investment forum scheduled for 13 May in Riyadh.

On May 13, CEOs from BlackRock, Palantir, Citigroup, IBM, Qualcomm, Alphabet, and Franklin Templeton participated in a Saudi-US investment forum in Riyadh.

Back in January, Saudi Arabia's Prince Mohammed announced plans to invest $600bn in the US over four years, but Trump has expressed a desire for this to increase to $1tn, including additional US military equipment purchases.

Boosting US-Saudi Trade Relations

Ali Shihabi, a Saudi commentator and author with close ties to the Saudi government, predicts several economic agreements will be signed during his trip.

Saudi Arabia's Public Investment Fund (PIF) controls assets worth $925bn and has various investments in the US, including Uber, Electronic Arts, and Lucid. The UAE has committed to investing $1.4 tn in the US over the next 10 years, focusing on AI, semiconductors, energy, and manufacturing, following a meeting between the White House and President Trump.

Likewise, Saudi Arabia seems to purchase over $100bn of US arms and military items during Trump's visit, including missiles, radar systems, and transport aircraft. The US has been a long-standing arms supplier to Saudi Arabia but stopped selling offensive weapons in 2021 due to Yemen war concerns.

Furthermore, Saudi Arabia seeks White House assurances for the US's efficient procurement system, enabling quicker access to ammunition and military equipment, with the Trump administration initiating procedures for these deals.

Saudi Arabia's Vision 2030, aimed at diversifying the economy from oil, faces challenges in attracting foreign capital due to a decline in foreign direct investment for the third consecutive year in 2024.

Eventually, Saudi Arabia is boosting trade with the US, citing Trump's call for lower oil prices and the global economy's growth. The US-Saudi Business Council encourages American businesses to explore opportunities in AI, healthcare, and education sectors. Saudi officials aim to strengthen ties and secure investment deals during Trump's visit.

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