U.S. President Donald Trump signed a significant economic agreement with Saudi Arabia on Tuesday, marking the beginning of his Gulf tour aimed at securing trillions of dollars in investments. The visit, which spans Saudi Arabia, Qatar, and the United Arab Emirates, underscores the strengthening of U.S.-Saudi ties and emphasizes economic collaboration over security concerns in the Middle East.
Trump arrived in Riyadh, where he was warmly greeted by Crown Prince Mohammed bin Salman (MbS). The two leaders inked an agreement covering key areas such as energy, defense, and mining. The White House revealed that Saudi Arabia plans to invest $600 billion in the U.S., including a historic $142 billion defense deal, the largest of its kind between the two nations.
“I really believe we like each other a lot,” Trump remarked during his meeting with MbS, highlighting the long-standing partnership. Alongside Trump, several prominent U.S. business figures, including Elon Musk, accompanied the president, indicating the strong business ties that will be central to the trip.
The agreement comes as Trump focuses on driving investment rather than addressing ongoing security issues in the region, notably excluding Israel from his itinerary. This has raised questions about U.S. priorities in the Middle East, especially as Trump seeks to bolster U.S. interests amid global geopolitical tensions, particularly following the weakening of Iran due to the Gaza conflict.
Saudi Investment Minister Khalid al-Falih emphasized the expanded business opportunities between the U.S. and Saudi Arabia, stressing that the kingdom’s Vision 2030 initiative, which aims to diversify its economy beyond oil, continues to open new avenues for collaboration. As part of this vision, Saudi Arabia has launched numerous ambitious projects, including the NEOM city, a $500 billion megaproject designed to reshape the nation’s future.
During the Saudi-U.S. investment forum, key figures like Larry Fink, CEO of BlackRock, and Stephen Schwartzman, CEO of Blackstone, were present. High-profile tech executives, including Musk and OpenAI’s Sam Altman, also joined the discussions, marking the importance of frontier technology investments in U.S. companies.
Despite the strategic economic focus, the visit is also seen through the lens of shifting alliances in the Middle East. Trump’s relations with MbS have been notably warmer compared to his predecessor Joe Biden, following the controversy over the 2018 murder of Saudi journalist Jamal Khashoggi. Trump’s stance contrasts with Biden’s, who had taken a more critical approach to the Saudi crown prince.
In addition to the economic ventures, Trump’s visit is poised to advance military cooperation. Sources indicate that Trump may offer an arms deal worth over $100 billion to Saudi Arabia, further cementing the strategic defense partnership. The president’s Middle East envoy, Steve Witkoff, suggested that discussions aimed at expanding accords between Israel and Arab states, initiated during Trump’s first term, could soon see progress.
While Trump’s focus remains on investments, the situation in Gaza continues to dominate discussions. Israeli officials have expressed concern over Trump’s decision to bypass Israel, amid ongoing military operations in Gaza. However, Trump’s leverage has grown due to the weakened state of Iran, which has been impacted by the conflict and U.S. diplomatic efforts in Oman to curb Tehran’s nuclear ambitions.
The economic agreements signed during Trump’s Gulf tour highlight a clear shift towards fostering business ties, signaling a priority on economic diplomacy and strategic investments in the region.
