Trump heads to Middle East with oil, arms, nuclear ambitions in focus

Dubai, United Arab Emiraten – US President Donald Trump will touch in the Persian Gulf region on 13 May – or as will soon call the Arab Golf, for an official trip with stops in Saudi Aarabia, Qatar and the United Arab Emirates.

The deployment is high because the visits take place in the midst of turbulent geopolitical tensions. On the agenda, the Israel-Gaza war will be cease-fire, oil, trade, investment agreements and the potential for new policy developments in the field of advanced semiconductor exports and nuclear program.

“We expect to see many announcements. And I also think that in a broad spectrum of areas Monica Malik, chief economist at Abu Dhabi Commercial Bank, on Friday to CNBCs Dan Murphy told. She noticed the potential removal of Trump’s 10% Rariffs on aluminium and steel, who was a positive for the Gulf -States.

Trump has long had a warm relationship with Gulf Arab states, in particular the VAE and Saudi Aarabia, where his children have serious business companies and planned real estate projects. Those relationships could strengthen the hands of the countries when it comes to negotiating new trade agreements – while they also arouse concern among critics about possible conflicts of interest, accusations that the Trump family rejects.

During the president’s initial term of office, his first overseas trip to Saudi Arabia-a country that now organizes the negotiations that Trump hopes will end the war in Russia-Ukraine, making the Kingdom more and more important to Washington. Qatar, meanwhile, you have played a central role in negotiations between Israel and Hamas about ceases -the fire and hostages.

The presidential visit attracts various Wall Street and Silicon Valley Titans to the Saudi Kingdom. A Saudi-US investment forum has announced or CitigroupIBM, Qualcomm” AlphabetAnd Franklin Templeton, among other things. White House AI and Crypto Tsar David Sacks will also be present.

“We also expect that many investment offers will be announced,” said Malik. “And both ways we have already announced a number of investments in the US in areas such as AI, energy, aluminum, but we also think there are opportunities for American companies to increase investments.”

Both Saudi Aarabia and the VAE have investigated heavily in the AI ​​infrastructure with the aim of becoming worldwide hubs for technology. That is why it is probably great of thoughts for those leaders the future of the export of the American semiconductor, the most advanced from which they have not gained access so far due to the national security problems. But that can change soon.

The Trump administration announced on Wednesday that its plan to terminate Biden was “AI diffusing rule”, which import strict export controls on advanced AI chips, even for us-friendly countries. The rule will be replaced by “a much simpler rule that unleashes the American innovation and unleashes the American AI -Dominance,” said a spokesperson for the American commerce department on Wednesday, although the details of the new rule have not yet been shared.

The state of the VAE MicrosoftWho invested $ 1.5 billion in G42 last year.

The Trump government is actively boring in conversations with Iran about its nuclear program -discussions that the VAE and Saudi Aarabia have an overview of. That enthusiasm is a stark contrast to the attitude of this country towards every American deals with Tehran during the Obama years.

At the same time, Saudi -Arabia wants its civilian nuclear program and the US has asked for approvals and help in this direction. Every American support for a Saudi -Nuclear program was rather a contingent about Saudi -Arabia’s normalization diplomatic relations with our ally Israel -but that could change during this visit, according to media reports that quoted sources with knowledge of the business.

During a visit to the Kingdom in April, the American energy secretary Chris Wright said that Saudi Aarabia and the US were a “path” in a civilian nuclear agreement – but that further announcements from Trump himself came.

Another important topic will be the future of Gaza. Trump has sworn to put an end to the war, while he also suggests that the US could take control of the war -destroyed comic he described as ‘important real estate’, comments that drew strong punishment from Arab leaders.

The US continued to go on on cease-fire, the most recently floating to 21-day stopping hostilities and the release of sub-hostesses, while Israel approved the growing fighting and territorial control in Gaza this week.

“We still have to hear an extensive plan of the Arab world,” said Greg Branch, founder of the VAE branch Global Capital Advisors, on Friday at CNBC while discussing Trump’s coming visit.

“If we see a respect that Arabic is being led, it is now or never,” said Branch. “I think that will be treated with subtle behind the scenes … probably more a long-term geopolitric risk than any immediately macro risk.”

Branch suggested that the lifting of American sanctions against Syria could also be discussed under its new government. In the meantime, it reports that the Trump government will announce an American reconstruction of the Persian Gulf to the Arabian Gulf, could be enthusiastically welcomed by Arab states, but serious anger of Iran in a time of nuclear delicate negotiations with Tehran.

The oil prices will also be in focus; Trump has long pushed the OPEC states, led by Saudi Aarabia, to pump more oil to use prices for American consumers. For a combination of reasons, Saudi Aarabia does that precoley – but it might have to change from Coursa in the coming months if the prices remain modest, which hurts the reves of the kingdom.

In that spirit, financing will be an important agenda item for the kingdom during Trump’s visit, according to Malik of ADCB.

In November, Saudi Arabia pledged to invest $ 600 billion in the US in the course of Trump’s term, but it also has towering costs for its own Vision 2030 investment ambies. Lower global oil prices and large projects for public spending have an overview of broadening budget deficits for Riyad.

“With the oil prices where they are, Saudi will look at more financing support from America and the look to make progress with their investment program,” said Malik.