Trump heads to UAE, Saudi, Qatar eyeing more investment, diplomacy, experts say
As US President Donald Trump begins what is being described as a "historic visit" to the Middle East, all eyes are on the region. This is the first international tour of Trump's second term as the American president and is likely to have wider implications.
'It signifies [Trump's] business pursuits to Make America Great Again and the importance of the Gulf in global affairs, both as a business centre and as a diplomatic hub,' said Dr N. Janardhan, Director of Research and Analysis and Acting Academic Director at Anwar Gargash Diplomatic Academy.
Another researcher noted that it was a marked departure from previous American leaders. 'This has a lot of significance because usually US presidents typically choose the closest allies such as Canada, France or the UK or Mexico for the first visit,' Hussain Abdul-Hussain, research fellow at the Washington-based thinktank Foundation for Defense of Democracies (FDD) told Khaleej Times. 'So the choice of the Gulf as the destination of his first visit carries a lot of significance from an American perspective.'
According to a statement by the White House, Trump's trip signals that the US is eager to lure more investment from abroad.
Dubai-based Suzanne Kianpour, an Iranian American global affairs specialist and founder and CEO of social impact platform Helmet to Heels, noted that this move cemented Trump's reputation as a 'deal maker' above everything else. 'He's worried less about the sensitivities of international diplomacy than with striking deals which benefit businesses both in the US and the GCC,' she said.
She added that the proposed investment by Damac in US data centres and the new Disney park in Abu Dhabi are all part of mutually beneficial agreements that will further strengthen the ties between UAE and the US. 'For Trump, it's the art of the deal,' she said.
Rebooting relationships
After arriving in Riyadh on Tuesday Trump will make stops at Doha and Abu Dhabi. Dr N. Janardhan said that 'plenty of deals' are expected to be signed. 'The visit is more about economics than politics or policy,' he said. 'Tech, arms, energy, infrastructure, aviation, and critical minerals deals will rule the roost. The recent billions and even trillion-dollar investment commitments that the Gulf countries have made in the recent past would take better form and shape during the visit.'
Hussain agreed and added that each of the countries 'will have its own set of announcements' to make after the visit, most of which will be economic in nature.
'In the case of Saudi Arabia, a few months back Trump said that they will pay half a trillion dollars in investments in the U.S. economy,' he said. 'So there'll be a set of MoUs to be signed between the two sides. I also expect Trump to give waivers to the sale of sensitive AI technology to Saudi Arabia and the UAE- which will come at a high price tag. So there'll be a lot of money that these countries will pay to invest in American AI.'
In March this year, UAE committed to a 10-year, $1.4 trillion investment in the US after national security advisor Sheikh Tahnoon bin Zayed Al Nahyan met Trump.
Suzanne added that with the visit, Trump was 'rebooting his ties' with the region that he formed during his first presidency. 'He is confirming mega‑investments and setting the stage to create jobs at home,' she said. 'He is also emerging victorious with a Qatari‑brokered release of an Israeli American hostage and talking Trump‑branded resorts. He is also ushering in a new era of deal-making on the coveted commodity that is chips, clean energy, Red Sea security and a tougher Iran deal.'
GCC summit
In Saudi Arabia, there will be a Gulf-US summit during Trump's visit- one that other GCC leaders have been invited to attend. Hussain noted that during the summit, there will likely be a joint statement. 'That will address issues pertaining to the region such as Gaza or maybe Lebanon or the Iranian situation,' he said.
Suzanne said that Trump will want to advance the Abraham Accords. 'We do know that the Trump administration really wants to see the next iteration of the Abraham Accords, which was the prime diplomatic achievement during Trump's first presidency,' she said. 'They want to see that expanded to Saudi Arabia.'
Dr. Janardhanan added that the impact on regional politics would be 'more positive than negative' in contrast to his 2017 visit. 'Washington will likely strike a delicate balance among the Gulf, Israeli, Palestinian, and Iranian concerns, among others,' he said. 'Given the big-ticket business deals that are likely to be announced, Washington is unlikely to jeopardise economic gains by excessively focusing on political or security issues.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
33 minutes ago
- Zawya
IMF sees 'some progress' on Lebanon reforms, says external support needed
Lebanon has made progress on reforms needed to revive its economy but still has key steps to take and will need external funding on concessional terms, the International Monetary Fund said on Thursday after a week of meetings in Beirut. Lebanon's economy went into a tailspin in late 2019, prompted by decades of profligate spending by the country's ruling elite. Reforms required to access IMF funding were repeatedly derailed by political and private interests. Lebanon's new president and prime minister, both of whom took office in early 2025, pledged to prioritise reforms and secure an IMF financing agreement - but the country now faces additional needs with the widespread destruction and displacement caused by Israel's military campaign last year. "The authorities have made some progress recently, including the amendment of the Bank Secrecy Law and submission of a new bank resolution law to Parliament," the IMF's Lebanon mission chief Ramirez Rigo said in a written statement. Rigo said his mission held "productive discussions" with Lebanese officials, including on restoring the viability of the banking sector, fiscal and debt sustainability and enhancing anti-money laundering and terrorism financing measures. He said Lebanon's medium-term fiscal framework should support the restructuring of Eurobond debts, which Lebanon defaulted on in 2020, leading to a sovereign default on its $31 billion of outstanding international bonds. "Given Lebanon's substantial reconstruction needs, limited fiscal space and lack of capacity to borrow, the country will require significant support from external partners on highly concessional terms," the IMF statement said. The World Bank estimated Lebanon's recovery and reconstruction needs following Israel's military campaign at $11 billion. But the U.S. has said it opposes any reconstruction funds to Lebanon until Hezbollah - the Iran-backed Lebanese armed group that fought Israel last year - is disarmed.
Zawya
34 minutes ago
- Zawya
Dollar slips after ECB hints at rates pause; US data weigh
The dollar slipped against the euro on Thursday after the European Central Bank hinted at a pause in its year-long policy easing cycle and U.S. data pointed to softening labor market conditions amid mounting economic headwinds from tariffs. The ECB cut interest rates for the eighth time in a year on Thursday, acknowledging inflation was under control and turning more pessimistic about economic prospects amid risks of a trade war with the United States. While not confirming a pause, the central bank said it was now well-positioned to cope with global economic uncertainty, as market bets grew on a summer break in its year-long easing cycle. "With today's cut and the current level of interest rates... I think we are getting to the end of a monetary policy cycle that was responding to compounded shocks, including COVID, including the war in Ukraine, the illegitimate war in Ukraine, and the energy crisis," ECB President Christine Lagarde said. The euro rose 0.5% to $1.1473, a fresh six-week high against the dollar, not far from the more than 3-year high of $1.1573 touched in April. "The euro-dollar has taken off here in response to Lagarde saying the ECB is getting towards the end of its rate cutting cycle," said Shaun Osborne, chief currency strategist at Scotiabank. The dollar's softer tone was an extension of its recent weakness, with the U.S. currency down nearly 10% against the euro for the year. "This just broadly reflects the softening in the broader dollar sentiment here and may well continue into non-farm payrolls tomorrow," Osborne said. "We are also seeing a little bit of volatility around news of President Trump talking to Xi, in a first sign of high-level communication between the White House and Beijing in quite some time," Osborne said. Chinese President Xi Jinping on Thursday held talks with Donald Trump by phone, China's state-run news agency Xinhua reported, as bilateral relations have been strained by trade disputes. The dollar also came under pressure after data showed the number of Americans filing new applications for unemployment benefits last week increased for a second straight week, pointing to softening labor market conditions amid mounting economic headwinds from tariffs. The claims data have no bearing on the Labor Department's closely watched employment report for May, scheduled to be released on Friday, as it falls outside the survey period. Nonfarm payrolls likely increased by 130,000 jobs last month after advancing by 177,000 in April, a Reuters survey of economists showed. The unemployment rate is forecast being unchanged at 4.2%. "Evidence of a cooling in labour markets is beginning to build, lowering expectations ahead of tomorrow's non-farm payrolls report and putting downward pressure on yields," Karl Schamotta, chief market strategist at Corpay, said. Markets have been rattled since Trump announced a slate of tariffs on countries around the world on April 2, only to pause some and declare new ones, leading investors to look for alternatives to U.S. assets. Investors remain worried about U.S. trade negotiations and the lack of progress in hashing out deals ahead of an early July deadline. Elsewhere, the Hong Kong dollar was at 7.846 per U.S. dollar, about the closest it has been to 7.85 - the weak end of its trading band against the U.S. dollar - since August 2023, according to LSEG data. The dollar was 0.3% higher against the yen at 143.25 yen. Sterling was 0.3% higher against the dollar on Thursday. The United Kingdom is the only country to have struck a trade deal with the Trump administration and was spared from higher U.S. steel and aluminium tariffs, though analysts question how beneficial those factors are. Bitcoin, the world's largest cryptocurrency by market capitalisation, was 0.5% lower on the day at $104,021. (Reporting by Saqib Iqbal Ahmed; Additional reporting by Ankur Banerjee in Singapore and Lucy Raitano in London; Editing by Jamie Freed, Amanda Cooper, Alex Richardson and Toby Chopra)
Zawya
34 minutes ago
- Zawya
US trade deficit narrows sharply in April; imports post record drop
The U.S. trade deficit narrowed sharply in April, with imports decreasing by the most on record as the front-running of goods ahead of tariffs ebbed, which could provide a lift to economic growth this quarter. The trade gap contracted by a record 55.5% to $61.6 billion, the lowest level since September 2023, the Commerce Department's Bureau of Economic Analysis said on Thursday. Data for March was revised to show the trade deficit having widened to an all-time high of $138.3 billion rather than the previously reported $140.5 billion. Economists polled by Reuters forecast the deficit narrowing to $70.0 billion. The goods trade deficit eased by a record 46.2% to $87.4 billion, the lowest level since October 2023. A rush to beat import duties helped to widen the trade deficit in the first quarter, which accounted for a large part of the 0.2% annualized rate of decline in gross domestic product last quarter. The contraction in the deficit, at face value, suggests that trade could significantly add to GDP this quarter, but much would depend on the state of inventories. Imports decreased by a record 16.3% to $351.0 billion in April. Goods imports slumped by a record 19.9% to $277.9 billion. They were held down by a $33.0 billion decline in imports of consumer goods, mostly pharmaceutical preparations from Ireland. Imports of cellphones and other household goods fell $3.5 billion. Imports of industrial supplies and materials declined $23.3 billion, reflecting decreases in finished metal shapes and other precious metals. Motor vehicle, parts and engines imports fell $8.3 billion with passenger cars accounting for much of the decline. The front-loading of imports is probably not over. Higher duties for most countries have been postponed until July, while those for Chinese goods have been delayed until mid-August. President Donald Trump's administration had given U.S. trade partners until Wednesday to make their "best offers" to avoid other punishing import levies from taking effect in early July. Imports from Canada were the lowest since May 2021, while those from China were the lowest since March 2020. But imports from Vietnam and Taiwan were the highest on record. Exports rose 3.0% to $289.4 billion, an all-time high. Goods exports increased 3.4% to a record $190.5 billion. They were boosted by a $10.4 billion jump in industrial supplies and materials, mostly finished metal shapes, nonmonetary gold and crude oil. Capital goods exports advanced $1.0 billion, lifted by computers. But exports of motor vehicles, parts and engines fell $3.3 billion, held down by passenger cars as well as trucks, buses and special purpose vehicles. Exports of services increased $2.1 billion to $98.9 billion, lifted by travel, despite reports of decreased tourist visits because of the trade tensions and an immigration crackdown. The United States had record goods trade surpluses with Hong Kong, the United Kingdom and Switzerland. But it had record deficits with Vietnam, Taiwan and Thailand, while the gap with Canada was the smallest since April 2021. (Reporting by Lucia Mutikani; Editing by Andrea Ricci)
