With US President Donald Trump due to visit Gulf states this week, a key focus will be securing significant new investment for the US economy.
“President Trump wants the announcement [of more Gulf money for the US],” says economist Karen Young, a senior fellow at the Middle East Institute think tank.
“He wants to have a big poster in a meeting that describes where these investments might go. And some estimation of what they will do to the American economy in terms of job creation or his big push, of course, on domestic manufacturing.”
Trump is due to arrive in the Saudi capital, Riyadh, on Tuesday 13 May, to meet the country’s de facto leader Crown Prince Mohammed bin Salman.
Trump is then expected to attend a summit of Gulf leaders in the city on 14 May, before travelling to Qatar that same day, and then ending his three-day trip in the United Arab Emirates (UAE) on 15 May.
The economic importance of the region to Trump is highlighted by the fact that the visit to Saudi Arabia was due to be the first overseas trip of his second term in the White House. That was before the death of Pope Francis necessitated Trump attending his funeral in Rome towards the end of April.
Saudi Arabia was also the first country that Trump visited during his first term of office, going against the modern practise of US presidents to start with the UK, Canada or Mexico.
Getty ImagesSecuring new investments in the US from Gulf states, and particularly from their state-backed sovereign wealth funds, will help Trump to signal back home that his “America First” agenda is delivering results.
The presidential visit is drawing top Wall Street and Silicon Valley leaders to Saudi Arabia. A Saudi-US investment forum on 13 May in Riyadh will feature CEOs from BlackRock, Palantir, Citigroup, IBM, Qualcomm, Alphabet, and Franklin Templeton.
The push comes amid economic headwinds, as President Trump’s new import tariffs have significantly disrupted global trade, confidence, and the US economy itself. US economic output fell in the first three months of this year, its first fall in three years.
Back in January, Prince Mohammed said that Saudi Arabia would invest $600bn (£450bn) in the US over the next four years. However, Trump has already said that he’d like that to rise to $1tn, including purchases of more US military equipment.
According to Ali Shihabi – a Saudi commentator and author, with close ties to the Saudi government – a number of economic agreements will be signed during the trip.
“These deals will further integrate the Saudi and US economies together, joint ventures in the kingdom, in the United States, procurements of American weapons and goods,” says Mr Shihabi.
