Donald Trump in Saudi Arabia as $600bn investment in US businesses announced
Donald Trump's visit to Saudi Arabia saw deals announced worth around $600bn as the Kingdom invests heavily in US businesses.
Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, and President Donald J. Trump of the United States co-chaired the Saudi-US Summit at the Royal Court in Al-Yamamah Palace.
The summit addressed bilateral relations and coordination efforts to enhance the strategic partnership between the two friendly countries across various sectors. Discussions also covered the latest regional and international developments, issues of mutual interest, and efforts to promote security and stability.
Donald Trump announces massive Saudi investments in US
In addition to diplomatic talks there was a slew of multi-billion dollar business announcements.
President Donald J. Trump announced Saudi Arabia's $600bn commitment to invest in the United States.
The first deals under the announcement include security, defence industry, technology and infrastructure deals.
The United States and Saudi Arabia signed a $142bn arms deal, which the White House dubbed as the 'largest defence sales agreement in history' to kick off the investment drive.
The US Government said the deal will supply 'Saudi Arabia with state-of-the-art warfighting equipment and services from over a dozen US defence firms'.
The sales fall into five broad categories:
Air force advancement and space capabilities
Air and missile defence
Maritime and coastal security
Border security and land forces modernisation
Information and communication systems upgrades
The package also includes extensive training and support to build the capacity of the Saudi armed forces, including enhancement of Saudi service academies and military medical services.
The first stop of Donald Trump's four-day diplomatic tour to the Gulf states was aimed at securing big deals and spotlighting the benefits of Donald Trump's transactional foreign policy.
US tech firms were other big winners as Saudi Arabia confirmed big deals for AI and technology companies during Donald Trump's visit.
Oracle is accelerating investments in Saudi Arabia and has announced an investment of $14bn over the next 10 years to bring the cloud and AI technology to the Kingdom.
The tech giant said the partnership will help improve the lives of the Saudi people, while bringing greater security and intelligence to the Kingdom, strengthening its sovereignty and deepening its alliance with the United States.
Safra Catz, CEO of Oracle, said: 'Thanks to the decisive actions and strong leadership of President Trump and his administration, Oracle is providing the world's most advanced cloud and AI technology to Saudi Arabia.
'Our expanded partnership with the Kingdom will create new opportunities for its economy, deliver better health outcomes for its people, and fortify its alliance with the United States, which will create a ripple effect of peace and prosperity across the Middle East and around the world.'
Nvidia said it will sell hundreds of thousands of AI chips in Saudi Arabia.
The sales begin with more than 18,000 of its 'Blackwell' chips going to Saudi-backed AI startup Humain. Chip giant AMD also announced a deal with Humain, with a $10bn collaboration.
DataVolt moving forward with plans to invest $20bn in AI data centres and energy infrastructure in the United States
Google, DataVolt, Oracle, Salesforce, AMD, and Uber committing to invest $80bn in cutting-edge transformative technologies in both countries
American companies including Hill International, Jacobs, Parsons, and AECOM building key infrastructure projects, including King Salman International Airport, King Salman Park, The Vault, Qiddiya City, and more, totalling $2bn in US services exports
Additional major exports include GE Vernova's gas turbines and energy solutions worth $14.2bn and Boeing 737-8 passenger aircraft for AviLease totalling $4.8bn
In the healthcare sector, Shamekh IV Solutions will invest $5.8bn, including a plant in Michigan to launch a high-capacity IV fluid facility
Investment partnerships include several sector-specific funds with a strong emphasis on US deployment—such as the $5bn Energy Investment Fund, the $5bn New Era Aerospace and Defence Technology Fund, and the $4bn Enfield Sports Global Sports Fund
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Today
32 minutes ago
- Gulf Today
China's forex reserves in May up by a less-than-expected $3.6 billion
China's foreign exchange reserves rose by a less-than-expected $3.6 billion in May, official data showed on Saturday, as the dollar continued to weaken against other major currencies. The country's foreign exchange reserves, the world's largest, rose 0.11 per cent to $3.285 trillion last month, below the Reuters forecast of $3.292 trillion. They were $3.282 trillion in April. The increase in reserves was due to 'the combined effects of factors such as exchange rate conversion and asset price changes,' China's State Administration of Foreign Exchange said in a statement. The yuan weakened 1.05 per cent against the dollar in May, while the dollar slid 0.23 per cent against a basket of other major currencies. China's foreign exchange reserves rose by a less-than-expected $3 billion in May, official data showed on Saturday, as the dollar continued to weaken against other major currencies. The country's foreign exchange reserves, the world's largest, rose to $3.285 trillion last month, below the Reuters forecast of $3.292 trillion. They were $3.282 trillion in April. The yuan weakened 1.05 per cent against the dollar in May, while the dollar slid 0.23 per cent against a basket of other major currencies. Meanwhile China's central bank added gold to its reserves in May for the seventh straight month, official data from the People's Bank of China (PBOC) showed on Saturday. Spot prices for gold, often seen as a refuge from economic and geopolitical uncertainty, were steady in May after hitting an all-time high of $3,500 per ounce in April. China's gold reserves rose to 73.83 million fine troy ounces at the end of May from 73.77 million ounces at the end of April. Its gold reserves were valued at $241.99 billion at the end of last month, down from $243.59 billion at the end of April, the PBOC said. With bullion up 27% so far this year due to tariff war fears on top of 27% growth in 2024, gold market specialists say the PBOC's readiness to continue building up gold holdings despite high prices reflects Beijing's desire to diversify its foreign currency reserves. Officials at the PBOC have not publicly said what was driving the gold purchases. In 2024, the PBOC took a six-month pause after an 18-month-long gold purchasing spree, before resuming buying gold in November, when Donald Trump won the US presidential election. The world's central banks are on track to buy 1,000 metric tonnes of gold in 2025, which would be their fourth year of massive purchases as they diversify reserves from dollar-denominated assets into bullion, consultancy Metals Focus said this week. Meanwhile China is willing to accelerate the examination and approval of rare earth exports to European Union firms and will also deliver a verdict on its trade investigation of EU brandy imports by July 5, its commerce ministry said on Saturday. Price commitment consultations between China and the EU on Chinese-made electric vehicles exported to the EU have also entered a final stage but efforts from both sides are still needed, according to a statement on the Chinese commerce ministry's website. The issues were discussed between Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic in Paris on Tuesday, according to the statement. The comments mark progress on matters that have vexed China's relationship with the European Union over the past year. Most recently, China's decision in April to suspend exports of a wide range of rare earths and related magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. The ministry said China attached great importance to the EU's concerns and 'was willing to establish a green channel for qualified applications to speed up the approval process.' Commerce Minister Wang during the meeting 'expressed the hope that the EU will meet us halfway and take effective measures to facilitate, safeguard and promote compliant trade in high-tech products to China,' according to the statement. Chinese anti-dumping measures that applied duties of up to 39 per cent on imports of European brandy - with French cognac bearing the brunt - have also strained relations between Paris and Beijing. The brandy duties were enforced days after the European Union took action against Chinese-made electric vehicle imports to shield its local industry, prompting France's President Emmanuel Macron to accuse Beijing of 'pure retaliation'. The Chinese duties have dented sales of brands including LVMH's Hennessy, Pernod Ricard's Martell and Remy Cointreau. Beijing was initially meant to make a final decision on the brandy duties by January, but extended the deadline to April and then again to July 5. Reuters
Gulf Today
3 hours ago
- Gulf Today
The rate is in a safe neutral position
The European Central Bank has reduced the interest rate to 2 per cent from 2.25 per cent, and it seems to have completed the cycle of reduction of rates from 4.25 per cent in June 2024. Markets are betting that the central bank would not reduce any further when it meets in July. The rate is now in a neutral position, where it can neither stimulate growth nor serve as a restraint. Bank president Christine Lagarde said at a press conference, 'At the current level we believe we are in a good position to navigate the uncertain circumstances that will be coming up.' She also said that the bank does not have any pre-determined position on the rate path, and it will take things as they turn out. The two major challenges that the European Union (EU) faces is the slow growth in the economy on the continent, and the tariffs that US President Donald Trump had announced on European imports as he did on imports from all American trade partners. European leaders are looking to negotiations but they have taken a firm position that they will not capitulate to the tariff threats of Washington. Because of lower economic growth, inflation is also aligned to the interest rate. There is however no clear monetary strategy to handle the present state of the European economy. The obvious way forward is to lower interest still further – and there is room for that between the existing 2 per cent and zero interest rate – to revive domestic investment demand. The problem that the European economy is facing is the pressure on its exports, which is a major anchor for European economic growth. In the May World Economic Outlook (WEO), the International Monetary Fund (IMF) says that the euro area will grow by 0.8 per cent in 2025 and by 1.2 per cent in 2026. There is 0.2 per cent reduction in the growth projection for the two years since the January 2025 WEO. Though the Central, Eastern and South-Eastern Europe (CESEE) seems to be doing slightly better than the advanced European economies, the projected figures show a slowing down of growth. For CESEE, it shows a growth of 2.4 per cent for 2025, a reduction by 0.6 per cent, and 2.7 per cent in 2026, a reduction by 0.4 per cent from the January projections. Europe's economic woes precede Trump's tariff onslaught. And the reasons are many. One of the major issues is the demography. The ageing population impacts the workforce, and the governments are burdened with social security commitments. It is surprising that the anti-immigrant right-wing parties have been making political headway in the elections across the continent. What Europe needs is an immigration policy to reinforce its workforce, and the skilling of the immigrants to take their place in the factories. But the governments do not have a policy of integrating the immigrants into the workforce. The second major issue is the burden of climate change and the energy transition that many of the EU members are committed to make. The plain fact is that Europe cannot hope to continue with the old fossil fuel-based production processes. The climate change processes involve financial commitments and the results will be slow in showing in terms of cleaning up the air, the rivers, and the reduction of greenhouse gas emissions. And more importantly, the global markets are changing, and the slowdown of exports will affect the European economy more than ever. The challenges that Europe faces are formidable. And the political responses have been quite erratic. The rise of right-wing political parties with their outdated notions that there is no climate change and that immigrants pose a problem to the prosperity of Europe is not really helpful.
The National
4 hours ago
- The National
Wall Street lifted by upbeat US jobs report and Tesla rebound
Wall Street closed higher on Friday, buoyed by a better-than-expected US jobs report and a rebound in Tesla Motors shares, although concern about the Federal Reserve's rates policy remained. The Labour Department reported on Friday that the American economy added 139,000 jobs in May, slower than previous months but beating analyst estimates, with the unemployment rate holding steady at 4.2 per cent. It also indicated that wages grew at a solid pace, which may mean the Fed is unlikely to cut interest rates – something that US President Donald Trump has demanded from the US central bank. Mr Trump on Thursday increased the pressure on Fed chairman Jerome Powell, urging him to cut interest rates by a full percentage point. Mr Powell so far has resisted the calls from the White House and maintains that policy decisions will be data dependent. He met Mr Trump at the White House last week and was firm that rate decisions will be made 'as required by law'. 'The labour market's resilience puts the Fed in a difficult spot: inflation pressures remain sticky and the cooling many expected simply hasn't materialised in the data that matters most,' said Nigel Green, chief executive of Dubai-based financial services firm deVere Group. 'This report puts another nail in the coffin for any talk of rate cuts in the summer. The Fed has said time and again it needs to see weakness in the labour market to move. This isn't weakness. It's strength with staying power.' Investors also continue to monitor the tariff situation between the US and China. After imposing substantial tit-for-tat levies on imports, the world's two biggest economies agreed to a detente on their trade war on May 12. Talks appear to be progressing: Mr Trump on Thursday spoke with Chinese President Xi Jinping, and on Friday Mr Trump said trade officials from Washington and Beijing will meet in London on Monday to resume discussions. 'Investors couldn't care less. Dips in equity markets are still seen as opportunities to buy cheaper. And while the data is fun to watch, it remains secondary to the blind bullishness,' said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank. 'That's the takeaway from the post – April 2 rally: the world may be wobbling, but markets march on,' she added, referring to the day Mr Trump announced his sweeping global tariffs programme. On Wall Street, the S&P 500 and Dow Jones Industrial Average both settled 1 per cent higher, while the tech-heavy Nasdaq Composite gained 1.2 per cent. Tesla, whose stock plummeted 14 per cent on Thursday in response chief executive Elon Musk's escalating public feud with Mr Trump, rebounded to close 3.7 per cent higher. The Texas-based company's shares rose by as much as 6 per cent. For the week, the S&P was up 1.5 per cent, the Dow added 1.2 per cent and the Nasdaq rose 2.2 per cent. Year-to-date, the indices are up 2 per cent, 0.5 per cent and 1.1 per cent, respectively. In Europe, markets were mostly up after the US jobs report eased fears of an economic slowdown. London's FTSE 100 closed up 0.3 per cent, boosted by banking stocks. Paris' CAC 40 added 0.2 per cent, while Frankfurt's DAX retreated 0.1 per cent. Earlier in Asia, major indices were mixed, with Tokyo's Nikkei 225 adding 0.5 per cent, Hong Kong's Hang Seng index declining 0.5 per cent and the Shanghai Composite closing flat. In commodities, oil prices jumped nearly 2 per cent on Friday to post their first weekly gain in three weeks amid hopes for a US-China deal on tariffs and the jobs report. Brent rose 1.73 per cent to settle at $66.47 a barrel, while West Texas Intermediate closed 1.91 per cent higher at $64.58 a barrel. Gold, meanwhile, fell more than 1 per cent on investor concerns that the US jobs report won't sway the Fed to cut rates soon. The precious metal, a hedge against inflation, declined nearly 1.3 per cent to $3,311.70 an ounce.
