Trump's Gulf visit... what it means for the region

Observer

18-05-2025

President Donald Trump's visit to the Gulf in May 2025 marked the beginning of his second term with a bold diplomatic and economic statement. In just five days, he secured a series of agreements with Saudi Arabia, Qatar, and the United Arab Emirates worth more than $4 trillion. While some critics claim that Trump came to the region merely to 'milk' its wealth, a closer look at the details reveals a broader strategy anchored in mutual interests, long-term planning, and shifting global alliances.
In Riyadh, the United States and Saudi Arabia announced a new strategic partnership built on investments and defence cooperation. The Saudi government pledged $600 billion in new investments into the American economy, while a $142 billion defence package was signed, reportedly the largest in US history. These agreements were not limited to arms deals. They extended into sectors such as artificial intelligence, renewable energy, infrastructure, and healthcare. Saudi companies like Data Vault committed to major data centre projects in the US, while American firms such as Google and Oracle expanded their collaborative ventures in the Kingdom.
Qatar followed with a series of headline-making announcements. The total value of its agreements with the US reached $1.2 trillion, including a record-setting order of over 200 Boeing aircraft. This deal alone is expected to support over 150,000 American jobs annually during the production phase. In addition, Qatar launched a joint quantum computing initiative with the US-based firm Quantinuum and confirmed a major expansion of its defence capabilities, including the purchase of cutting-edge systems for drone defence and surveillance. The two nations also signed a statement of intent for deeper long-term military cooperation, and Qatar committed to investing further in the development of Al Udeid Air Base.
In the United Arab Emirates, the focus turned towards technology and energy. President Trump and UAE leaders finalised agreements worth more than $200 billion. These included a significant deal for Etihad Airways to purchase new Boeing aircraft and a bold plan by the Abu Dhabi National Oil Company (ADNOC) to increase its investment in the US energy sector to $440 billion by 2035. Perhaps the most notable development was an agreement allowing the UAE to purchase advanced AI chips from Nvidia – previously restricted under export controls. In return, the UAE agreed to stringent export compliance measures and to establish major data centres within the United States.
US President Donald Trump holds a sample of oil that he was gifted as he attends a business forum at Qasr Al Watan during the final stop of his Gulf visit, in Abu Dhabi, United Arab Emirates, last Friday. — Reuters
While the scale of these agreements has drawn international attention, their context is just as important. This recent tour builds on groundwork laid during Trump's first term, which included historic arms deals, the Abraham Accords, and expanded economic cooperation across multiple sectors. These initiatives positioned the Gulf states not just as clients but as strategic partners, with shared ambitions in fields like artificial intelligence, energy transition, and regional security.
Reactions to Trump's Gulf tour were mixed. Supporters viewed it as a demonstration of economic diplomacy at its most effective. By securing investments, creating jobs, and reinforcing Washington's position in a competitive global environment, the administration offered a model of transactional engagement that resonated with Gulf leaders. In a time when other powers, particularly China, are vying for influence in the region, the United States reaffirmed its central role.
However, scepticism was not absent. Some US lawmakers and analysts questioned the transparency of the figures and the security risks of transferring sensitive technology. Others expressed concern over the absence of discussions around regional conflicts.
Despite the criticism, the nature of these agreements makes clear that Gulf states acted with strategic intent. Their investments are focused, diversified, and designed to advance national visions of economic modernisation and technological advancement. These are not mere displays of generosity, but deliberate choices in a world where influence and innovation are increasingly linked.
In sum, President Trump's Gulf tour was not a one-sided affair. The agreements forged during his visit are likely to shape regional and global dynamics for years to come. They signal a renewed era of strategic alignment between the United States and its Gulf partners – one defined by collaboration, mutual benefit, and a shared pursuit of economic and technological leadership.