Tue, 20 May 2025

Tue, 20 May 2025 Did Trump really strike Gulf deals worth $2tn?

Some analysts question whether the amount of investment will ultimately be that high.

* President Trump claimed that he secured deals worth over $2tn (£1.5tn) during his Gulf trip, but experts question whether these numbers add up.
* The actual trade and investment flows between the US and Saudi Arabia from 2017-2020 were less than $300bn, despite a previously announced deal of $450bn.
* Many of the agreements signed during the trip are non-binding memorandums of understanding that do not always translate into actual transactions.
* Oil prices have tumbled to a four-year low, making it difficult for Saudi Arabia to deliver on its pledge to invest $600bn in US-Saudi partnerships.
* The deals announced during the trip mark a shift in the US-Gulf relationship from oil-for-security to stronger economic partnerships rooted in bilateral investments.
* The emphasis on AI underscores its growing strategic importance to US diplomacy, with the UAE and Saudi Arabia racing to build large-scale AI data centers.
* The Gulf states are investing heavily in AI, with the UAE pledging $1.4tn over the next decade and Saudi Arabia aiming to become a high-tech economy as it transitions away from oil.
* The trip was seen as a triumph for both the Gulf states and President Trump, who touted "trillions" in new investment to boost his economic record.
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