US President Donald Trump’s visit to Saudi Arabia, Qatar, and the United Arab Emirates from May 13 to 16 was described as “historic” in the US. It shone a light on the high economic and strategic importance of these countries to the US and America’s growing dependence on them to bring about regional stability and security.
To please the “Arab” sentiment, Trump announced that the US will adopt the term “Arabian Gulf” or “Gulf of the Arabs” instead of “Persian Gulf”. But for the Arabs of Gaza, continually subjected to genocide, this meant little. Trump’s visit brought them no relief, though Gaza was discussed by the leaders. And with Trump refusing to give Gaza priority, both Israel and Hamas continued to stick to their hard line to the detriment of the people of Gaza.
Economic deals
With the US having a trade surplus with KSA, UAE and Qatar, these countries were subjected only to the basic 10 percent US tariff under Trump’s new tariff system.
According to the website of “Trends Research and Advisory”, the US technology company NVIDIA signed a deal with Saudi Arabia to supply its AI chips. Semi-conductor company AMD entered into a similar US$10 billion partnership with a Saudi company, while Amazon is developing an AI Zone with an investment plan exceeding US$5 billion. Google is backing a new US$100 million AI fund, alongside a US$20 billion data deal with the American company Supermicro.
According to the US Department of State, Saudi investments in the US reached US$9.5 billion in 2023, with a focus on transportation, real estate, and automobiles. The Saudi Public Investment Fund (PIF) has expanded its portfolio in ride-sharing companies, gaming firms, and electric vehicle manufacturers.
Deal with UAE
UAE’s investments in the US totalled US$3.7 billion between 2018 and 2023, while US investments in the UAE in the same period was US$9.5 billion.
Major UAE direct investments in the US were in renewable energy, telecommunications, real estate, software services, and information technology.
Artificial Intelligence (AI) was a leading sector for US investments in the UAE, noticeably with Microsoft’s recent US$1.5 billion strategic investment in the UAE AI group G42.
In addition to the UAE’s announcement of US$1.4 trillion in investment commitments in the US market over the next ten years, President Trump’s visit to the UAE saw the signing of direct deals worth US$200 billion across several leading economic sectors.
These include a commitment from Etihad Airways to invest US$14.5 billion in 28 aircraft from Boeing; a US$60 billion plan between Abu Dhabi National Oil Company (ADNOC) and leading American oil companies to expand oil and natural gas production; a US$4 billion primary aluminium smelter project to be developed by Emirates Global Aluminium in Oklahoma, along with additional investments by the company and the UAE’s Tawazun Council in a gallium project aimed at bolstering the US supply of critical minerals.
In the technology sector, American company Qualcomm announced plans to help develop a new “global engineering hub” in Abu Dhabi focused on AI and data centres. A new AI complex is to be built by UAE-based G42 in partnership with several American companies. The complex will include 5 gigawatts of AI data centre capacity, providing a regional platform for large-scale or cloud computing service providers.
Amazon Web Services is set to collaborate with UAE telecom provider e& and the UAE Cyber Security Council to enhance the country’s public cloud services.
Following Qatar’s announcement of a US$1.2 trillion investment pledge, deals worth over US$243.5 billion were signed during President Trump’s visit.
These agreements included:(1) Qatar Airways signed a US$96 billion deal to purchase up to 210 aircraft from Boeing, marking the largest-ever order for wide-body aircraft and the largest single order for 787s. (2) The Qatar Investment Authority plans to invest an additional US$500 billion in the US over the next decade, targeting sectors such as AI, data centres and healthcare, all aligned with the U.S. reindustrialisation agenda.
Defence deals
Advanced military equipment and services, including next-generation fighter jets, air defence systems, drones, space capabilities, and information and communications systems, topped the list of Gulf states’ orders from the US.
A Saudi-US defence agreement to the value of US$142 billion was signed. On May 2, the US approved a US$3.5 billion missile deal with Saudi Arabia, including 1,000 AIM-120 medium-range air-to-air missiles.
In Qatar, two agreements – US$3 billion were signed to supply the country with MQ-9B unmanned aerial systems, among the most advanced multi-mission drone systems, as well as American-made FS-LIDS counter-drone systems. Qatar thus became the first international buyer of this defensive technology.
Qatar and the US signed an MOU to strengthen the security partnership, valued at over US$38 billion, which includes joint investments in Al Udeid Air Base and support for Qatar’s air defence and maritime security capabilities.
The US Department of State had already approved a US $1.4 billion defence deal with the UAE, covering modern military equipment and weaponry, particularly for its air force.
Trump himself underscored these points when he addressed US forces at Al Udeid airbase in Qatar. He said – “We nearly lost the Middle East because of the Biden administration’s policies. But we will protect the Middle East.”
Political dimension
Trump’s visit also had a wide range of political and strategic implications. He discussed with GCC leaders the progress of the indirect US-Iran nuclear negotiations that have been underway since April 12, aiming to reach a new agreement on Iran’s nuclear program. Unlike the 2015 negotiations that led to the Joint Comprehensive Plan of Action (JCPOA), the current talks reflect a shared interest between the US and GCC states in reaching a new nuclear agreement that would spare the region further turmoil.
In addition to the mediation efforts being undertaken by the Sultanate of Oman between the US and Iran, both the UAE and Saudi Arabia have played roles in facilitating message exchanges, communications, and de-escalation between the two sides. The Saudi Foreign Minister affirmed his country’s full support for the U.S.-Iran nuclear negotiations.
The US had presented a new nuclear agreement proposal to Iran in the fourth round of talks in Muscat on May 11. On May 15 President Trump said in Doha that Iran had agreed to some extent to the terms of the US proposal.
Syria
Trump met Syrian President Ahmed Al-Sharaa in Riyadh, on the side-lines of the GCC-US Summit. The issue of reintegrating Syria, under President Al-Sharaa, into the regional and international system, led by GCC states and Saudi Arabia, as well as the normalisation of US-Syrian relations, was discussed. On his part, Trump lifted sanctions on Syria.
Gaza discussed
Trump discussed the urgent need for a ceasefire in Gaza, the release of Israeli hostages held by Hamas, and the delivery of food, medical, and humanitarian aid to Gaza. He proposed a US-controlled or U.S.-managed mechanism for aid delivery.
Trump’s visit to Qatar on May 14 coincided with a negotiation session in Doha aimed at achieving a ceasefire in Gaza.
The talks involved a high-level Israeli delegation, US Special Envoy for the Middle East Steve Witkoff, and US Special Presidential Envoy for Hostage Affairs Adam Boehler. The closed-door meeting included Qatar’s Emir Sheikh Tamim bin Hamad Al Thani, and indirect participation from Hamas.
President Trump did not raise the issue of forcibly displacing Gaza’s population nor the proposal for a US-led temporary or transitional administration in Gaza after the war. But on May 15 he reiterated his desire for the US to “take over Gaza and transform it into a freedom zone”.
But this plan is opposed by the Gulf countries, who support the Arab plan for Gaza’s reconstruction without displacing its people.
Trump urged Saudi Arabia to join the Abraham Accords and called on the UAE to renew its existing commitments to them. In a surprising development, Trump also indicated that Syria would eventually join the accords.
