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Sydney Morning Herald
7 days ago
- Business
- Sydney Morning Herald
Bitcoin Beach: How a small seaside town became cryptocurrency ground zero
The populist Salvadorian leader, who has fashioned himself a Silicon Valley-style disrupter, signed a $US1.4 billion-deal with the International Monetary Fund (IMF), the bogeyman of Bitcoiners, in which he agreed to scale back the country's Bitcoin policies. As part of the agreement, Salvadorian merchants are no longer compelled to accept the cryptocurrency as payment and Bukele agreed on paper to stop buying Bitcoin with public cash – the country currently owns more than 6,000 Bitcoin – although he has since said their strategy is not stopping. So what will this gear-change mean for 'Bitcoin Beach'? 'It's gonna keep some people away, definitely,' says Ronny Avendano, who runs the Bitcoin Hardware Store, which sells all the Bitcoin bells and whistles including tech and books about the cryptocurrency. 'The IMF is definitely a governing body that you want to stay as far away from as possible... It might be detrimental to the business,' he adds. While he does not think the IMF deal will impact life in El Zonte, where Bitcoin is already enmeshed in the community, he worries it could cause some Bitcoiners to get 'cold feet'. Loading Avendano, whose parents fled El Salvador for Canada during the civil war, gave up his six-figure job in finance in Toronto to travel Latin America in response to Justin Trudeau's vaccine mandates. His first stop was El Zonte in March 2021. He has been here ever since. After learning about Bitcoin, he became a 'Bitcoin maximalist', investing all of his savings in the cryptocurrency. Right now, he says, he only has around $US9. When Bukele announced Bitcoin would be a legal tender, he saw an 'influx' of Bitcoiners from all over the world arrive. Talking to The Telegraph after giving a short lesson on investing in the courtyard outside his shop, he adds: 'From a tourist perspective, you know, I don't feel that excitement anymore... It used to be 'I can't wait to come to El Salvador' to now 'tell you what's going on with this deal'.' He adds: 'For me, nothing's changed. People in town still accept Bitcoin, and I still love the Bitcoin farmers market. Yesterday, I went to buy food at the grocery store in Bitcoin. 'I don't know what's gonna happen over the next six months if it were to change... I'd have to close my business down.' Mr Avendano believes it's not just Bitcoin pulling foreigners to El Salvador, but the country's safety. To combat gang violence, Bukele enforced a 'state of exception' in 2022, rounding up and imprisoning more than 80,000 people without due process. The streets are safer, but the Bukele administration has faced allegations of human rights abuses. His administration also built the notorious Cecot mega-prison, where Donald Trump has since deported Venezuelan migrants the White House claims are gang members. Walter Mena, a Salvadorian lawyer, was reluctant to open a business before Bukele, when even El Zonte was overrun by gangs and it was not uncommon for people to be shot dead on the beach. But now Mena, 49, who returned to El Salvador in 2019 after living in France for 15 years, is in the midst of constructing apartments he hopes to rent to wealthy Bitcoiners Mena, who accepts Bitcoin payment for his legal services, does not think the IMF deal will make any difference. Loading 'Now people know what Bitcoin is and how to use it... Bukele is pretty smart, and the IMF is full of dinosaurs,' he said. 'People probably will turn back, but the people who understand, who are already here, they're not leaving.' For locals in El Zonte, the sudden arrival of foreign Bitcoiners has been a blessing and a curse. Wealthy foreigners have been investing in the area, buying land, building homes and starting businesses. But prices have increased, and for each tale of one local making enough money to buy a new motorcycle with Bitcoin, there are stories of those who lost thousands in the volatile market. El Salvador 'like Wild West' Surf teacher Isaac Reyes, 28, who is from El Zonte, says there have been more positive impacts than negative on the local community. He is sometimes paid in Bitcoin but he and most of the locals transfer it straight into dollars using an app on their phone. He said he believes the novelty of Bitcoin Beach had already reached its 'peak' and is now 'going back down'. 'Now the difference is the people, not the currency… less people are coming,' he said. From speaking to the Europeans who have already moved to El Salvador in search of Bitcoin freedom, there is no hesitation – they are here to stay. M moved to El Salvador from London in 2021 after he broke up with his girlfriend and read about Bukele. Talking to The Telegraph as he sips on a can of beer with a friend, purchased with Bitcoin, he says he did not know El Salvador existed before he read about the Salvadorian president. M, 28, who did not want to give his full name, now lives in San Salvador. He first bought Bitcoin almost a decade ago when he was at university and now works for a hardware Bitcoin devices firm. Asked what he likes most about the country, he said: 'The fact that I can just easily use my Bitcoin everywhere.' Danny, a retired Belgian housebuilder who also did not want to give his last name, made his fortune in Bitcoin before moving to El Zonte 20 months ago in search of a crypto haven to retire to. You wouldn't know it by looking at him, as he sits on a stool wearing a vest and flip flops, but Danny, 59, is a Bitcoin millionaire. He invested his life savings in 2014, when one Bitcoin was worth around $US311. The value has since swelled to over $US108,000. He believes Europe is becoming a 'police state' and part of the reason he has relocated to El Zonte is to provide a base for his nine grandchildren to escape to if they wish. El Salvador, by contrast, he says is like the Wild West. 'There are not many rules, or not many rules that you really need to follow... there is almost no control.' James Bosworth, the founder of Hxagon, a firm which provides political risk analysis with a focus on Latin America, is also unconvinced the IMF deal will have much of an impact. 'Bitcoin experiment has been a failure' He puts the apparent dwindling numbers of people visiting Bitcoin Beach down to the town losing its sheen, rather than the IMF deal. 'It's probably more a function of the initial hype cycle about El Salvador's Bitcoin drawing down and global macro factors (likely recession hits all tourism),' he says. He adds: 'There are only so many people who might relocate and most of them jumped early. For anyone still considering it, the IMF agreement didn't change much.' Dr Peter Howson, an assistant professor at Northumbria University who has written books on cryptocurrency, thinks Bukele's Bitcoin experiment has been a 'failure'. Loading In 2023, eight out of 10 Salvadorians did not use cryptocurrency, according to a survey by the University Institute of Public Opinion (Iudop) at the José Simeón Cañas Central American University (UCA). Meanwhile, only a fraction of remittances sent back to El Salvador from relatives abroad, which accounts for 25 per cent of the country's GDP, were sent with Bitcoin.
The Age
7 days ago
- Business
- The Age
Bitcoin Beach: How a small seaside town became cryptocurrency ground zero
The populist Salvadorian leader, who has fashioned himself a Silicon Valley-style disrupter, signed a $US1.4 billion-deal with the International Monetary Fund (IMF), the bogeyman of Bitcoiners, in which he agreed to scale back the country's Bitcoin policies. As part of the agreement, Salvadorian merchants are no longer compelled to accept the cryptocurrency as payment and Bukele agreed on paper to stop buying Bitcoin with public cash – the country currently owns more than 6,000 Bitcoin – although he has since said their strategy is not stopping. So what will this gear-change mean for 'Bitcoin Beach'? 'It's gonna keep some people away, definitely,' says Ronny Avendano, who runs the Bitcoin Hardware Store, which sells all the Bitcoin bells and whistles including tech and books about the cryptocurrency. 'The IMF is definitely a governing body that you want to stay as far away from as possible... It might be detrimental to the business,' he adds. While he does not think the IMF deal will impact life in El Zonte, where Bitcoin is already enmeshed in the community, he worries it could cause some Bitcoiners to get 'cold feet'. Loading Avendano, whose parents fled El Salvador for Canada during the civil war, gave up his six-figure job in finance in Toronto to travel Latin America in response to Justin Trudeau's vaccine mandates. His first stop was El Zonte in March 2021. He has been here ever since. After learning about Bitcoin, he became a 'Bitcoin maximalist', investing all of his savings in the cryptocurrency. Right now, he says, he only has around $US9. When Bukele announced Bitcoin would be a legal tender, he saw an 'influx' of Bitcoiners from all over the world arrive. Talking to The Telegraph after giving a short lesson on investing in the courtyard outside his shop, he adds: 'From a tourist perspective, you know, I don't feel that excitement anymore... It used to be 'I can't wait to come to El Salvador' to now 'tell you what's going on with this deal'.' He adds: 'For me, nothing's changed. People in town still accept Bitcoin, and I still love the Bitcoin farmers market. Yesterday, I went to buy food at the grocery store in Bitcoin. 'I don't know what's gonna happen over the next six months if it were to change... I'd have to close my business down.' Mr Avendano believes it's not just Bitcoin pulling foreigners to El Salvador, but the country's safety. To combat gang violence, Bukele enforced a 'state of exception' in 2022, rounding up and imprisoning more than 80,000 people without due process. The streets are safer, but the Bukele administration has faced allegations of human rights abuses. His administration also built the notorious Cecot mega-prison, where Donald Trump has since deported Venezuelan migrants the White House claims are gang members. Walter Mena, a Salvadorian lawyer, was reluctant to open a business before Bukele, when even El Zonte was overrun by gangs and it was not uncommon for people to be shot dead on the beach. But now Mena, 49, who returned to El Salvador in 2019 after living in France for 15 years, is in the midst of constructing apartments he hopes to rent to wealthy Bitcoiners Mena, who accepts Bitcoin payment for his legal services, does not think the IMF deal will make any difference. Loading 'Now people know what Bitcoin is and how to use it... Bukele is pretty smart, and the IMF is full of dinosaurs,' he said. 'People probably will turn back, but the people who understand, who are already here, they're not leaving.' For locals in El Zonte, the sudden arrival of foreign Bitcoiners has been a blessing and a curse. Wealthy foreigners have been investing in the area, buying land, building homes and starting businesses. But prices have increased, and for each tale of one local making enough money to buy a new motorcycle with Bitcoin, there are stories of those who lost thousands in the volatile market. El Salvador 'like Wild West' Surf teacher Isaac Reyes, 28, who is from El Zonte, says there have been more positive impacts than negative on the local community. He is sometimes paid in Bitcoin but he and most of the locals transfer it straight into dollars using an app on their phone. He said he believes the novelty of Bitcoin Beach had already reached its 'peak' and is now 'going back down'. 'Now the difference is the people, not the currency… less people are coming,' he said. From speaking to the Europeans who have already moved to El Salvador in search of Bitcoin freedom, there is no hesitation – they are here to stay. M moved to El Salvador from London in 2021 after he broke up with his girlfriend and read about Bukele. Talking to The Telegraph as he sips on a can of beer with a friend, purchased with Bitcoin, he says he did not know El Salvador existed before he read about the Salvadorian president. M, 28, who did not want to give his full name, now lives in San Salvador. He first bought Bitcoin almost a decade ago when he was at university and now works for a hardware Bitcoin devices firm. Asked what he likes most about the country, he said: 'The fact that I can just easily use my Bitcoin everywhere.' Danny, a retired Belgian housebuilder who also did not want to give his last name, made his fortune in Bitcoin before moving to El Zonte 20 months ago in search of a crypto haven to retire to. You wouldn't know it by looking at him, as he sits on a stool wearing a vest and flip flops, but Danny, 59, is a Bitcoin millionaire. He invested his life savings in 2014, when one Bitcoin was worth around $US311. The value has since swelled to over $US108,000. He believes Europe is becoming a 'police state' and part of the reason he has relocated to El Zonte is to provide a base for his nine grandchildren to escape to if they wish. El Salvador, by contrast, he says is like the Wild West. 'There are not many rules, or not many rules that you really need to follow... there is almost no control.' James Bosworth, the founder of Hxagon, a firm which provides political risk analysis with a focus on Latin America, is also unconvinced the IMF deal will have much of an impact. 'Bitcoin experiment has been a failure' He puts the apparent dwindling numbers of people visiting Bitcoin Beach down to the town losing its sheen, rather than the IMF deal. 'It's probably more a function of the initial hype cycle about El Salvador's Bitcoin drawing down and global macro factors (likely recession hits all tourism),' he says. He adds: 'There are only so many people who might relocate and most of them jumped early. For anyone still considering it, the IMF agreement didn't change much.' Dr Peter Howson, an assistant professor at Northumbria University who has written books on cryptocurrency, thinks Bukele's Bitcoin experiment has been a 'failure'. Loading In 2023, eight out of 10 Salvadorians did not use cryptocurrency, according to a survey by the University Institute of Public Opinion (Iudop) at the José Simeón Cañas Central American University (UCA). Meanwhile, only a fraction of remittances sent back to El Salvador from relatives abroad, which accounts for 25 per cent of the country's GDP, were sent with Bitcoin.
The Advertiser
16-05-2025
- Business
- The Advertiser
AI chips agreement as Trump wraps up Gulf states trip
The United Arab Emirates and the United States have agreed to create a path for the Gulf country to buy some of the most advanced artificial intelligence semiconductors from US companies, a major win for Abu Dhabi's efforts to become a global AI hub. President Donald Trump made the announcement as he wrapped his Gulf tour of Saudi Arabia, Qatar and the UAE, with a pledge by oil power Abu Dhabi - the UAE's capital and richest emirate - to hike the value of its energy investments in the US to $US440 billion ($A685 billion) in the next decade. He pledged on Thursday to strengthen US ties with the UAE, announcing deals totalling over $US200 billion, including a $US14.5 billion commitment from Etihad Airways to invest in 28 American-made Boeing aircraft. "We work together and the money that's made here comes back to us," Trump told Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed during a news conference in Abu Dhabi on Friday, touting the business relationship between the US and UAE. "We've made it work, and you know they were being wooed by others. But there's no more wooing, I think we're in pretty good shape," he said. "Absolutely," the crown prince said. The AI deal, finalised on Thursday, is a boost for the UAE, which has been trying to balance its relations with its longtime ally the US and its largest trading partner China. It reflects the Trump administration's confidence that the chips can be managed securely, in part by requiring data centres be managed by US companies. "Yesterday the two countries also agreed to create a path for UAE to buy some of the world's most advanced AI semiconductors from American companies, a very big contract," Trump said. The UAE energy investment commitment was announced during a presentation by Sultan Al Jaber, Abu Dhabi state energy giant ADNOC's chief executive, to Trump during the last stage of his tour that has drawn huge financial commitments from the UAE, Saudi Arabia and Qatar. The enterprise value of UAE investments in the US energy sector would be boosted to $US440 billion by 2035 from $US70 billion now, Al Jaber told Trump, adding US energy firms will also invest in the UAE. Already in March, when senior UAE officials met Trump, the UAE had committed to a 10-year, $US1.4 trillion investment framework in the US in sectors including energy, AI and manufacturing to deepen reciprocal ties. "We're making great progress for the $US1.4 (trillion) that UAE has announced it intends to spend in the United States," Trump said on his last stop on a Gulf tour that has focused, at least publicly, on investment deals, not security crises in the Middle East, including Israel's war in Gaza. However, Trump did engage in some diplomacy on his whirlwind meetings with some of the world's biggest energy producers. He met with Syria's new interim President Ahmed al-Sharaa in Riyadh and said he would order the lifting of sanctions on Syria at the behest of Saudi Arabia's crown prince, a major US policy shift. The United Arab Emirates and the United States have agreed to create a path for the Gulf country to buy some of the most advanced artificial intelligence semiconductors from US companies, a major win for Abu Dhabi's efforts to become a global AI hub. President Donald Trump made the announcement as he wrapped his Gulf tour of Saudi Arabia, Qatar and the UAE, with a pledge by oil power Abu Dhabi - the UAE's capital and richest emirate - to hike the value of its energy investments in the US to $US440 billion ($A685 billion) in the next decade. He pledged on Thursday to strengthen US ties with the UAE, announcing deals totalling over $US200 billion, including a $US14.5 billion commitment from Etihad Airways to invest in 28 American-made Boeing aircraft. "We work together and the money that's made here comes back to us," Trump told Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed during a news conference in Abu Dhabi on Friday, touting the business relationship between the US and UAE. "We've made it work, and you know they were being wooed by others. But there's no more wooing, I think we're in pretty good shape," he said. "Absolutely," the crown prince said. The AI deal, finalised on Thursday, is a boost for the UAE, which has been trying to balance its relations with its longtime ally the US and its largest trading partner China. It reflects the Trump administration's confidence that the chips can be managed securely, in part by requiring data centres be managed by US companies. "Yesterday the two countries also agreed to create a path for UAE to buy some of the world's most advanced AI semiconductors from American companies, a very big contract," Trump said. The UAE energy investment commitment was announced during a presentation by Sultan Al Jaber, Abu Dhabi state energy giant ADNOC's chief executive, to Trump during the last stage of his tour that has drawn huge financial commitments from the UAE, Saudi Arabia and Qatar. The enterprise value of UAE investments in the US energy sector would be boosted to $US440 billion by 2035 from $US70 billion now, Al Jaber told Trump, adding US energy firms will also invest in the UAE. Already in March, when senior UAE officials met Trump, the UAE had committed to a 10-year, $US1.4 trillion investment framework in the US in sectors including energy, AI and manufacturing to deepen reciprocal ties. "We're making great progress for the $US1.4 (trillion) that UAE has announced it intends to spend in the United States," Trump said on his last stop on a Gulf tour that has focused, at least publicly, on investment deals, not security crises in the Middle East, including Israel's war in Gaza. However, Trump did engage in some diplomacy on his whirlwind meetings with some of the world's biggest energy producers. He met with Syria's new interim President Ahmed al-Sharaa in Riyadh and said he would order the lifting of sanctions on Syria at the behest of Saudi Arabia's crown prince, a major US policy shift. The United Arab Emirates and the United States have agreed to create a path for the Gulf country to buy some of the most advanced artificial intelligence semiconductors from US companies, a major win for Abu Dhabi's efforts to become a global AI hub. President Donald Trump made the announcement as he wrapped his Gulf tour of Saudi Arabia, Qatar and the UAE, with a pledge by oil power Abu Dhabi - the UAE's capital and richest emirate - to hike the value of its energy investments in the US to $US440 billion ($A685 billion) in the next decade. He pledged on Thursday to strengthen US ties with the UAE, announcing deals totalling over $US200 billion, including a $US14.5 billion commitment from Etihad Airways to invest in 28 American-made Boeing aircraft. "We work together and the money that's made here comes back to us," Trump told Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed during a news conference in Abu Dhabi on Friday, touting the business relationship between the US and UAE. "We've made it work, and you know they were being wooed by others. But there's no more wooing, I think we're in pretty good shape," he said. "Absolutely," the crown prince said. The AI deal, finalised on Thursday, is a boost for the UAE, which has been trying to balance its relations with its longtime ally the US and its largest trading partner China. It reflects the Trump administration's confidence that the chips can be managed securely, in part by requiring data centres be managed by US companies. "Yesterday the two countries also agreed to create a path for UAE to buy some of the world's most advanced AI semiconductors from American companies, a very big contract," Trump said. The UAE energy investment commitment was announced during a presentation by Sultan Al Jaber, Abu Dhabi state energy giant ADNOC's chief executive, to Trump during the last stage of his tour that has drawn huge financial commitments from the UAE, Saudi Arabia and Qatar. The enterprise value of UAE investments in the US energy sector would be boosted to $US440 billion by 2035 from $US70 billion now, Al Jaber told Trump, adding US energy firms will also invest in the UAE. Already in March, when senior UAE officials met Trump, the UAE had committed to a 10-year, $US1.4 trillion investment framework in the US in sectors including energy, AI and manufacturing to deepen reciprocal ties. "We're making great progress for the $US1.4 (trillion) that UAE has announced it intends to spend in the United States," Trump said on his last stop on a Gulf tour that has focused, at least publicly, on investment deals, not security crises in the Middle East, including Israel's war in Gaza. However, Trump did engage in some diplomacy on his whirlwind meetings with some of the world's biggest energy producers. He met with Syria's new interim President Ahmed al-Sharaa in Riyadh and said he would order the lifting of sanctions on Syria at the behest of Saudi Arabia's crown prince, a major US policy shift. The United Arab Emirates and the United States have agreed to create a path for the Gulf country to buy some of the most advanced artificial intelligence semiconductors from US companies, a major win for Abu Dhabi's efforts to become a global AI hub. President Donald Trump made the announcement as he wrapped his Gulf tour of Saudi Arabia, Qatar and the UAE, with a pledge by oil power Abu Dhabi - the UAE's capital and richest emirate - to hike the value of its energy investments in the US to $US440 billion ($A685 billion) in the next decade. He pledged on Thursday to strengthen US ties with the UAE, announcing deals totalling over $US200 billion, including a $US14.5 billion commitment from Etihad Airways to invest in 28 American-made Boeing aircraft. "We work together and the money that's made here comes back to us," Trump told Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed during a news conference in Abu Dhabi on Friday, touting the business relationship between the US and UAE. "We've made it work, and you know they were being wooed by others. But there's no more wooing, I think we're in pretty good shape," he said. "Absolutely," the crown prince said. The AI deal, finalised on Thursday, is a boost for the UAE, which has been trying to balance its relations with its longtime ally the US and its largest trading partner China. It reflects the Trump administration's confidence that the chips can be managed securely, in part by requiring data centres be managed by US companies. "Yesterday the two countries also agreed to create a path for UAE to buy some of the world's most advanced AI semiconductors from American companies, a very big contract," Trump said. The UAE energy investment commitment was announced during a presentation by Sultan Al Jaber, Abu Dhabi state energy giant ADNOC's chief executive, to Trump during the last stage of his tour that has drawn huge financial commitments from the UAE, Saudi Arabia and Qatar. The enterprise value of UAE investments in the US energy sector would be boosted to $US440 billion by 2035 from $US70 billion now, Al Jaber told Trump, adding US energy firms will also invest in the UAE. Already in March, when senior UAE officials met Trump, the UAE had committed to a 10-year, $US1.4 trillion investment framework in the US in sectors including energy, AI and manufacturing to deepen reciprocal ties. "We're making great progress for the $US1.4 (trillion) that UAE has announced it intends to spend in the United States," Trump said on his last stop on a Gulf tour that has focused, at least publicly, on investment deals, not security crises in the Middle East, including Israel's war in Gaza. However, Trump did engage in some diplomacy on his whirlwind meetings with some of the world's biggest energy producers. He met with Syria's new interim President Ahmed al-Sharaa in Riyadh and said he would order the lifting of sanctions on Syria at the behest of Saudi Arabia's crown prince, a major US policy shift.
The Advertiser
15-05-2025
- Business
- The Advertiser
Trump promises to strengthen ties with UAE on Gulf tour
US President Donald Trump has pledged to strengthen US ties to the United Arab Emirates on a visit to the Gulf state that is expected to deepen co-operation on artificial intelligence. Trump began a visit to the UAE on the latest stage of a tour of wealthy Gulf states after hailing plans by Qatar to invest $US10 billion ($A16 billion) in a US military facility during a trip to the country. "I have absolutely no doubt that the relationship will only get bigger and better," Trump said in a meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan. "Your wonderful brother came to Washington a few weeks ago and he told us about your generous statement as to the 1.4 trillion," Trump said, referring to a UAE pledge to invest $US1.4 trillion in the United States over 10 years. Trump was referring to Sheikh Tahnoon bin Zayed Al Nahyan, Sheikh Mohamed's brother and the UAE's national security adviser and chairman of two of Abu Dhabi's deep-pocketed sovereign wealth funds. "And all I can say is thank you very much," Trump added. "We will work very hard to deserve it." Before his departure for the UAE, Trump said in a speech to US troops at the Al Udeid Air Base southwest of Doha that defence purchases signed by Qatar on Wednesday are worth $US42 billion. He was met at the airport in Abu Dhabi by Sheikh Mohamed and the two leaders visited the Sheikh Zayed Grand Mosque, its white minarets and domes, impressive in the late-afternoon light. "It is so beautiful," Trump told reporters inside the mosque, which he said had been closed for the day. "First time they closed it. It's in honour of the United States. Better than in honour of me. Let's give it to the country. That's a great tribute." The UAE's leaders want US help to make their wealthy Gulf state a global leader in artificial intelligence. The US has a preliminary agreement with the UAE to allow it to import 500,000 of Nvidia's most advanced AI chips a year, starting this year, Reuters reported on Wednesday. The deal would boost the UAE's construction of data centres vital to developing artificial intelligence models. But the agreement has provoked national security concerns among sectors of the US government, and the terms could change, sources said. At the presidential palace, Trump and Sheikh Mohamed could be seen in TV footage in conversation with Nvidia CEO Jensen Huang. Trump said he would probably return to Washington DC on Friday after a regional trip that began on Tuesday, although he said it was "almost destination unknown - because they'll be getting calls 'could you be here? Could you be there?',". Trump had hinted that he could stop in Istanbul for talks on Ukraine. The two countries have finalised a technology framework agreement that was expected to be signed later on Thursday, a source with knowledge of the matter told Reuters. The agreement requires commitments on both sides to the security of technology, the source said, without immediately providing details. AI is likely to be a focus of the final leg of Trump's trip. Former US president Joe Biden's administration had imposed strict oversight of exports of US AI chips to the Middle East and other regions. Among the Biden administration's fears were that the prized semiconductors would be diverted to China and buttress its military strength. Trump has made improving ties with some Gulf countries a key goal of his administration. If all the proposed chip deals in Gulf states, and the UAE in particular, come together, the region would become a third power centre in global AI competition after the United States and China. US President Donald Trump has pledged to strengthen US ties to the United Arab Emirates on a visit to the Gulf state that is expected to deepen co-operation on artificial intelligence. Trump began a visit to the UAE on the latest stage of a tour of wealthy Gulf states after hailing plans by Qatar to invest $US10 billion ($A16 billion) in a US military facility during a trip to the country. "I have absolutely no doubt that the relationship will only get bigger and better," Trump said in a meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan. "Your wonderful brother came to Washington a few weeks ago and he told us about your generous statement as to the 1.4 trillion," Trump said, referring to a UAE pledge to invest $US1.4 trillion in the United States over 10 years. Trump was referring to Sheikh Tahnoon bin Zayed Al Nahyan, Sheikh Mohamed's brother and the UAE's national security adviser and chairman of two of Abu Dhabi's deep-pocketed sovereign wealth funds. "And all I can say is thank you very much," Trump added. "We will work very hard to deserve it." Before his departure for the UAE, Trump said in a speech to US troops at the Al Udeid Air Base southwest of Doha that defence purchases signed by Qatar on Wednesday are worth $US42 billion. He was met at the airport in Abu Dhabi by Sheikh Mohamed and the two leaders visited the Sheikh Zayed Grand Mosque, its white minarets and domes, impressive in the late-afternoon light. "It is so beautiful," Trump told reporters inside the mosque, which he said had been closed for the day. "First time they closed it. It's in honour of the United States. Better than in honour of me. Let's give it to the country. That's a great tribute." The UAE's leaders want US help to make their wealthy Gulf state a global leader in artificial intelligence. The US has a preliminary agreement with the UAE to allow it to import 500,000 of Nvidia's most advanced AI chips a year, starting this year, Reuters reported on Wednesday. The deal would boost the UAE's construction of data centres vital to developing artificial intelligence models. But the agreement has provoked national security concerns among sectors of the US government, and the terms could change, sources said. At the presidential palace, Trump and Sheikh Mohamed could be seen in TV footage in conversation with Nvidia CEO Jensen Huang. Trump said he would probably return to Washington DC on Friday after a regional trip that began on Tuesday, although he said it was "almost destination unknown - because they'll be getting calls 'could you be here? Could you be there?',". Trump had hinted that he could stop in Istanbul for talks on Ukraine. The two countries have finalised a technology framework agreement that was expected to be signed later on Thursday, a source with knowledge of the matter told Reuters. The agreement requires commitments on both sides to the security of technology, the source said, without immediately providing details. AI is likely to be a focus of the final leg of Trump's trip. Former US president Joe Biden's administration had imposed strict oversight of exports of US AI chips to the Middle East and other regions. Among the Biden administration's fears were that the prized semiconductors would be diverted to China and buttress its military strength. Trump has made improving ties with some Gulf countries a key goal of his administration. If all the proposed chip deals in Gulf states, and the UAE in particular, come together, the region would become a third power centre in global AI competition after the United States and China. US President Donald Trump has pledged to strengthen US ties to the United Arab Emirates on a visit to the Gulf state that is expected to deepen co-operation on artificial intelligence. Trump began a visit to the UAE on the latest stage of a tour of wealthy Gulf states after hailing plans by Qatar to invest $US10 billion ($A16 billion) in a US military facility during a trip to the country. "I have absolutely no doubt that the relationship will only get bigger and better," Trump said in a meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan. "Your wonderful brother came to Washington a few weeks ago and he told us about your generous statement as to the 1.4 trillion," Trump said, referring to a UAE pledge to invest $US1.4 trillion in the United States over 10 years. Trump was referring to Sheikh Tahnoon bin Zayed Al Nahyan, Sheikh Mohamed's brother and the UAE's national security adviser and chairman of two of Abu Dhabi's deep-pocketed sovereign wealth funds. "And all I can say is thank you very much," Trump added. "We will work very hard to deserve it." Before his departure for the UAE, Trump said in a speech to US troops at the Al Udeid Air Base southwest of Doha that defence purchases signed by Qatar on Wednesday are worth $US42 billion. He was met at the airport in Abu Dhabi by Sheikh Mohamed and the two leaders visited the Sheikh Zayed Grand Mosque, its white minarets and domes, impressive in the late-afternoon light. "It is so beautiful," Trump told reporters inside the mosque, which he said had been closed for the day. "First time they closed it. It's in honour of the United States. Better than in honour of me. Let's give it to the country. That's a great tribute." The UAE's leaders want US help to make their wealthy Gulf state a global leader in artificial intelligence. The US has a preliminary agreement with the UAE to allow it to import 500,000 of Nvidia's most advanced AI chips a year, starting this year, Reuters reported on Wednesday. The deal would boost the UAE's construction of data centres vital to developing artificial intelligence models. But the agreement has provoked national security concerns among sectors of the US government, and the terms could change, sources said. At the presidential palace, Trump and Sheikh Mohamed could be seen in TV footage in conversation with Nvidia CEO Jensen Huang. Trump said he would probably return to Washington DC on Friday after a regional trip that began on Tuesday, although he said it was "almost destination unknown - because they'll be getting calls 'could you be here? Could you be there?',". Trump had hinted that he could stop in Istanbul for talks on Ukraine. The two countries have finalised a technology framework agreement that was expected to be signed later on Thursday, a source with knowledge of the matter told Reuters. The agreement requires commitments on both sides to the security of technology, the source said, without immediately providing details. AI is likely to be a focus of the final leg of Trump's trip. Former US president Joe Biden's administration had imposed strict oversight of exports of US AI chips to the Middle East and other regions. Among the Biden administration's fears were that the prized semiconductors would be diverted to China and buttress its military strength. Trump has made improving ties with some Gulf countries a key goal of his administration. If all the proposed chip deals in Gulf states, and the UAE in particular, come together, the region would become a third power centre in global AI competition after the United States and China. US President Donald Trump has pledged to strengthen US ties to the United Arab Emirates on a visit to the Gulf state that is expected to deepen co-operation on artificial intelligence. Trump began a visit to the UAE on the latest stage of a tour of wealthy Gulf states after hailing plans by Qatar to invest $US10 billion ($A16 billion) in a US military facility during a trip to the country. "I have absolutely no doubt that the relationship will only get bigger and better," Trump said in a meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan. "Your wonderful brother came to Washington a few weeks ago and he told us about your generous statement as to the 1.4 trillion," Trump said, referring to a UAE pledge to invest $US1.4 trillion in the United States over 10 years. Trump was referring to Sheikh Tahnoon bin Zayed Al Nahyan, Sheikh Mohamed's brother and the UAE's national security adviser and chairman of two of Abu Dhabi's deep-pocketed sovereign wealth funds. "And all I can say is thank you very much," Trump added. "We will work very hard to deserve it." Before his departure for the UAE, Trump said in a speech to US troops at the Al Udeid Air Base southwest of Doha that defence purchases signed by Qatar on Wednesday are worth $US42 billion. He was met at the airport in Abu Dhabi by Sheikh Mohamed and the two leaders visited the Sheikh Zayed Grand Mosque, its white minarets and domes, impressive in the late-afternoon light. "It is so beautiful," Trump told reporters inside the mosque, which he said had been closed for the day. "First time they closed it. It's in honour of the United States. Better than in honour of me. Let's give it to the country. That's a great tribute." The UAE's leaders want US help to make their wealthy Gulf state a global leader in artificial intelligence. The US has a preliminary agreement with the UAE to allow it to import 500,000 of Nvidia's most advanced AI chips a year, starting this year, Reuters reported on Wednesday. The deal would boost the UAE's construction of data centres vital to developing artificial intelligence models. But the agreement has provoked national security concerns among sectors of the US government, and the terms could change, sources said. At the presidential palace, Trump and Sheikh Mohamed could be seen in TV footage in conversation with Nvidia CEO Jensen Huang. Trump said he would probably return to Washington DC on Friday after a regional trip that began on Tuesday, although he said it was "almost destination unknown - because they'll be getting calls 'could you be here? Could you be there?',". Trump had hinted that he could stop in Istanbul for talks on Ukraine. The two countries have finalised a technology framework agreement that was expected to be signed later on Thursday, a source with knowledge of the matter told Reuters. The agreement requires commitments on both sides to the security of technology, the source said, without immediately providing details. AI is likely to be a focus of the final leg of Trump's trip. Former US president Joe Biden's administration had imposed strict oversight of exports of US AI chips to the Middle East and other regions. Among the Biden administration's fears were that the prized semiconductors would be diverted to China and buttress its military strength. Trump has made improving ties with some Gulf countries a key goal of his administration. If all the proposed chip deals in Gulf states, and the UAE in particular, come together, the region would become a third power centre in global AI competition after the United States and China.
West Australian
15-05-2025
- Business
- West Australian
Trump promises to strengthen ties with UAE on Gulf tour
US President Donald Trump has pledged to strengthen US ties to the United Arab Emirates on a visit to the Gulf state that is expected to deepen co-operation on artificial intelligence. Trump began a visit to the UAE on the latest stage of a tour of wealthy Gulf states after hailing plans by Qatar to invest $US10 billion ($A16 billion) in a US military facility during a trip to the country. "I have absolutely no doubt that the relationship will only get bigger and better," Trump said in a meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan. "Your wonderful brother came to Washington a few weeks ago and he told us about your generous statement as to the 1.4 trillion," Trump said, referring to a UAE pledge to invest $US1.4 trillion in the United States over 10 years. Trump was referring to Sheikh Tahnoon bin Zayed Al Nahyan, Sheikh Mohamed's brother and the UAE's national security adviser and chairman of two of Abu Dhabi's deep-pocketed sovereign wealth funds. "And all I can say is thank you very much," Trump added. "We will work very hard to deserve it." Sheikh Mohamed told Trump the UAE was "keen to continue and strengthen this friendship for the benefit of the two countries and peoples," adding to Trump: "your presence here today, your excellency, the president, confirms that this keenness is mutual." Before his departure for the UAE, Trump said in a speech to US troops at the Al Udeid Air Base southwest of Doha that defence purchases signed by Qatar on Wednesday are worth $US42 billion. He was met at the airport in Abu Dhabi by Sheikh Mohamed and the two leaders visited the Sheikh Zayed Grand Mosque, its white minarets and domes, impressive in the late-afternoon light. "It is so beautiful," Trump told reporters inside the mosque, which he said had been closed for the day. "First time they closed it. It's in honour of the United States. Better than in honour of me. Let's give it to the country. That's a great tribute." The UAE's leaders want US help to make their wealthy Gulf state a global leader in artificial intelligence. The US has a preliminary agreement with the UAE to allow it to import 500,000 of Nvidia's most advanced AI chips a year, starting this year, Reuters reported on Wednesday. The deal would boost the UAE's construction of data centres vital to developing artificial intelligence models. But the agreement has provoked national security concerns among sectors of the US government, and the terms could change, sources said. At the presidential palace, Trump and Sheikh Mohamed could be seen in TV footage in conversation with Nvidia CEO Jensen Huang. Trump said he would probably return to Washington DC on Friday after a regional trip that began on Tuesday, although he said it was "almost destination unknown - because they'll be getting calls 'could you be here? Could you be there?',". Trump had hinted that he could stop in Istanbul for talks on Ukraine. The two countries have finalised a technology framework agreement that was expected to be signed later on Thursday, a source with knowledge of the matter told Reuters. The agreement requires commitments on both sides to the security of technology, the source said, without immediately providing details. AI is likely to be a focus of the final leg of Trump's trip. Former US president Joe Biden's administration had imposed strict oversight of exports of US AI chips to the Middle East and other regions. Among the Biden administration's fears were that the prized semiconductors would be diverted to China and buttress its military strength. Trump has made improving ties with some Gulf countries a key goal of his administration. If all the proposed chip deals in Gulf states, and the UAE in particular, come together, the region would become a third power centre in global AI competition after the United States and China.
