Trump starts Gulf visit seeking big economic deals

Riyadh — US President Donald Trump arrived in Saudi Arabia on Tuesday on a four-day visit to the wealthy Gulf region, focusing more on economic deals than pressing regional security matters ranging from war in Gaza to talks about Iran’s nuclear program.

With a who’s who of powerful American business leaders in tow, Trump is visiting Riyadh, site of a Saudi-US Investment Forum, before going to Qatar on Wednesday and the United Arab Emirates on Thursday. He has not scheduled a stop in Israel, a decision that has raised questions about where Israel stands in Washington’s priorities.

“While energy remains a cornerstone of our relationship, the investments and business opportunities in the kingdom have expanded and multiplied many, many times over,” Saudi investment minister Khalid al-Falih said as he opened the forum.

“As a result ... when Saudis and Americans join forces very good things happen, more often than not great things happen when those joint ventures happen,” he said before Trump’s arrival.

Trump is hoping to secure trillions of dollars of investments from the Gulf oil producers. Saudi Arabia had pledged $600bn but Trump has said he wants $1-trillion from the kingdom, one of Washington’s most important allies.

The Saudi-US investment forum began with a video showing soaring eagles and falcons and celebrating the long history between the US and the kingdom.

At the front of a palatial hall sat Larry Fink, the CEO of BlackRock, Stephen A. Schwartzman, CEO of Blackstone, Treasury Secretary Scott Bessent, and Saudi finance minister Mohammed Al Jadaan and Falih.

Speaking at a forum panel as Trump touched down in Riyadh, Fink said he had travelled to Saudi Arabia more than 65 times over 20 years. He said the kingdom had been a follower when he first started visiting but was now “taking control” and broadening its economy out of its oil base.

After landing, Trump punched the air when he caught sight of Crown Prince Mohammed bin Salman, also known as MbS, before shaking hands with the de facto leader.

MbS has focused on weaning the kingdom’s economy off hydrocarbon dependence in a major reform programme dubbed Vision 2030 that includes “Giga-projects” such as NEOM, a futuristic city the size of Belgium.

The kingdom has had to scale back some of its lofty ambitions as rising costs and falling oil prices weigh.

Long ties based on oil and security

Saudi Arabia and the US have maintained strong ties for decades based on an ironclad arrangement in which the kingdom delivers oil and the superpower provides security.

Trump has also said he may travel on Thursday to Turkey for potential face-to-face talks between Vladimir Putin and Volodymyr Zelensky on Russia’s war in Ukraine. An aide to Zelensky said the Ukrainian president would take part only if Putin does. The Russian leader has not said if he will attend, and has questioned Zelensky’s legitimacy.

Trump’s second foreign trip since returning to the presidency — his first was to Rome for Pope Francis’ funeral — comes at a time of geopolitical tension.

In addition to pressing for a settlement in Ukraine, his administration is pushing for a new aid mechanism for Gaza after 19 months of war and urging Israeli Prime Minister Benjamin Netanyahu to agree a new ceasefire deal there.

Israeli officials have put a brave face on Trump’s decision to bypass Israel during his trip but there are growing doubts in Israel about its position in his priorities as frustration mounts in Washington over the failure to end the Gaza war.

Over the weekend, US and Iranian negotiators met in Oman to discuss a potential deal to curb Tehran's nuclear program. Trump has threatened military action against Iran if diplomacy fails.

Iran’s neighbours should retain neutrality as Trump visits the Gulf, Iran’s Nournews quoted armed forces chief of staff Mohammad Bagheri as saying on Tuesday. Any aggression against Iran would lead to definitive retaliation, he added.

Apart from the possible Turkey side trip, those matters are not the focus of Trump’s Middle East swing as now scheduled.

Trump is expected to offer Saudi Arabia an arms package worth more than $100bn , sources told Reuters. This could include a range of advanced weapons.

Trump’s Middle East envoy Steve Witkoff said last week he expected progress imminently on expanding the Abraham Accords, a set of deals brokered by Trump in his first term by which Arab states including the UAE, Bahrain and Morocco recognised Israel.

But opposition by Netanyahu to a permanent stop to the war in Gaza or to the creation of a Palestinian state makes progress on similar talks with Riyadh unlikely, sources told Reuters.

Trump’s second and third stops, in Qatar and the UAE, are similarly expected to focus on economic issues.

Reuters