President of the United States Donald Trump arrived in Riyadh, Saudi Arabia just after 10am and began his tour of the Middle East, greeted by Crown Prince Mohammed bin Salman.
During the three-day trip, he will also travel to Qatar and the United Arab Emirates (UAE) and focus on securing economic agreements with three of the world’s wealthiest countries.
The trip will include discussions about investment opportunities, and some experts say Trump may urge Gulf countries to lower oil prices.
When will Trump visit countries?
Trump arrived in Riyadh, Saudi Arabia just before 10am local time (07:00 GMT) on Saturday, where he was greeted by Crown Prince Mohammed bin Salman. On the same day, he will be attending a Saudi Arabian investment forum featuring major companies such as BlackRock, Citigroup, Palantia, Qualcomm and Alphabet.
On Wednesday, he is scheduled to take part in the Gulf Summit in Riyadh, before traveling to Qatar later that day. He concludes his trip to the United Arab Emirates on Thursday, May 15th.
Trump’s first visit as president was to Saudi Arabia.
During his first term in 2017-2021, Trump became the first US president to make the Middle East his first international destination, breaking through the long-standing tradition of first visiting neighboring North American countries.
Travel to Saudi Arabia from May 20-22, 2017 – During that time he attended the Riyadh Summit, a calculated move to strengthen defence ties and secure a substantial arms deal.
During that trip, Trump also visited Israel and Palestine.
Although Trump did not go to Qatar or the United Arab Emirates during his first term, he met Qatar Sheikh Tamim bin Hamad al-Thani, Bahrain’s king Hamad bin Isa al-Khalifa, and Egyptian President Abdel Fatta Elysi.
During the summit, Trump and Saudi Arabian King Salman bin Abdulaziz have signed a $110 billion weapons contract that includes missile defense systems, tanks, combat ships and cybersecurity technologies, with the aim of purchasing weapons worth $350 million over a decade.
A memorable moment from his 2017 trip to Saudi Arabia was inaugurated by the Global Centre to combat extremist ideology in Riyadh. In a surreal photo manipulation that quickly became word of mouth, Trump stood with King Salman and President Elssi, holding a shining orb.
What is the value of investment in the US Gulf?
Sami Al Aleen, director of the Islamic Global Affairs Centre at Istanbul Zyim University, told Al Jazeera that Trump is very vocal about his purpose in visiting the three Gulf countries.
The Trump administration reportedly discussed the possibility of stimulating investment by Saudi Arabia, Qatar and the United Arab Emirates before travelling to the region.
“He’s trying to get trillions of dollars from these countries,” Al Arian told Al Jazeera.
“He already says he wants to get $1 trillion from Saudi Arabia in terms of arms sales and commercial trading,” he said.
US Investment
Saudi Arabia’s total shares in US Foreign Direct Investment (FDI) reached $11.3 billion in 2023, according to the latest data from the US Department of Commerce.
Conversely, US Saudi Arabia’s FDI stocks were $9.6 billion, primarily in transportation, real estate, plastics, automobiles, financial services and communications.
These figures are FDI only, not other investments, such as portfolio investments or short-term financial flows.
US-Qatar Investment
In 2023, Qatar’s total U.S. FDI stock was estimated at $2.5 billion.
According to the US-Qatar Business Council, the US companies that promoted Qatar’s FDI focus on the areas of energy, petrochemicals, construction, engineering and communications technology.
Conversely, US Qatar FDI stocks reached $3.3 billion in 2023, with investments concentrated on financial services, energy and real estate.
US-UAE Investment
In 2023, the UAE’s total U.S. FDI stock reached $16.1 billion.
According to Reuters, in 2023, the main FDI drivers were the manufacturing, finance, insurance, construction, wholesale and retail trade sectors.
Meanwhile, the US UAE FDI stock totaled $35 billion in 2023, according to the Commerce Department.
In March, UAE national security adviser Tanoon Bin Zayed Al Nahyan met Trump and committed to US investments to $1.4 trillion over a decade in sectors such as artificial intelligence, semiconductors, energy and manufacturing.
Arms trade between nations
The United States is the world’s largest arms exporter and is the top supplier of Gulf countries.
Qatar and Saudi Arabia accounted for 6.8% of the world’s arms imports from 2020 to 24, becoming the third and fourth largest importers in the world, respectively.
The United Arab Emirates is the 11th largest arms importer, accounting for 2.6% of global imports during the same period.
According to Stockholm International Peace Institute (SIPRI), Saudi Arabia is the main recipient of US weapons. Between 2020 and 2024, Saudi Arabia received 12% of the total US arms exports.
Approximately 74% of Saudi arms imports come from the United States.
According to Reuters, Trump is poised to provide Saudi Arabia with a weapons package worth more than $100 million.
From 2020 to 24, the US was Qatar’s top weapons supplier, accounting for 48% of imports.
In March, the US State Department approved a large weapons package for Qatar worth $2 billion, including long-range maritime surveillance drones and hundreds of missiles and bombs.
During the same period, the US was also the top supplier of arms in the United Arab Emirates, accounting for 42% of the country’s weapons imports.
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