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From 13 to 16 May, US President Donald Trump undertook a four-day tour of the Gulf, visiting Saudi Arabia, Qatar and the United Arab Emirates (UAE). The trip marked a significant reset and improvement in US bilateral relations with Saudi Arabia, Qatar and the UAE. Along with commercial wins on all sides, the tour created opportunities for US and international companies in the Gulf, and for Gulf investors in the US.
The headline investment agreements announced will now be followed by an intense period of specific deal negotiations. To ensure success, both US investors in the Gulf and Gulf investors in the US should conduct thorough policy, integrity and cyber risk assessments in relation to specific deals.
Political and commercial wins
The Gulf tour marked the first planned foreign trip of Trump’s second term. For the Gulf states, it acknowledged their importance to the US and their status as global political and economic players. For Trump, the warm welcome he received, and the agreements announced, will allow him to brandish his reputation as a dealmaker bringing investment and jobs to US companies.
Major announcements included a USD 142bn deal to sell US arms to Saudi Arabia, described by the White House as the “largest defence sales agreement in history”, a record order by Qatar Airways for 160 aeroplanes from Boeing, and deals worth 200bn with the UAE – including a USD 14.5bn commitment by Abu Dhabi’s Etihad Airways to buy 28 Boeing aircraft, as well as an agreement to accelerate cooperation on artificial intelligence (AI).
In a major diplomatic coup for Saudi Arabia, which brokered a meeting between Trump and Syrian President Ahmed al-Sharaa in Riyadh on 14 May, Trump also announced the planned lifting of US sanctions on Syria.
The visit will bolster US bilateral relations with Saudi Arabia, the UAE and Qatar. Behind the scenes, Trump is likely to have sought to garner Gulf leaders’ buy-in on the contours of his administration’s proposed deal with Iran, while also lobbying them to support other key priorities such ascontaining Chinese political and commercial influence in the Gulf and keeping oil prices low.
The visit will also provide a boost for US business interests in the Gulf and for Gulf investment in the US, including in defence, technology, datacentres, energy, AI, financial services, construction and real estate, and aviation.
Business environment
US companies seeking to do business in Saudi Arabia, the UAE or Qatar will find an opportunity-rich and welcoming business environment. Security risks are low, and the countries are politically stable. Infrastructure is well-developed and routine business processes are generally efficient. Policy and counterparty risk assessments around specific deals should focus on issues such as contract risk, reputational and integrity considerations, the regulatory environment and local content requirements.
Gulf investors in the US, meanwhile, should be aware that positive bilateral relations do not guarantee success. While the Trump administration is taking steps to reduce barriers to investment from allies (e.g., through the America First Investment Policy signed on 21 February), legal challenges and changing decisions have led to persistent policy uncertainty.
State governments have also taken increasingly divergent regulatory positions on issues ranging from environmental obligations to data protection, while investors perceived as too close to the Trump administration are potential targets for activists.
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