Unbridled Business and Diplomacy: Trump's Gulf Excursion
Get Ready for Deals Galore in the Gulf!
Business magnate and former U.S. President, Donald Trump, revisits the realm of transactions and negotiations.
With a keen eye for profitable ventures, US President Donald Trump is embarking on a business-focused trip to the Middle East, hitting Saudi Arabia, Qatar, and the United Arab Emirates within four days. This journey - his first major foreign expedition in his second term - comes amidst regional strife, but it's not just about war and peace; it's about cashing in on the Trumps' longstanding business connections in the Gulf.
Politics: A VIP Pass for the Gulf's Elite
Trump's first stop on this epic journey is Riyadh, where he'll meet none other than the 39-year-old powerhouse, Crown Prince Mohammed bin Salman, better known as "MBS." This young ruler, nearly half Trump's age, is heavily entangled with the Trumps through their extensive business deals but faces criticism for his hard-edged use of power, amplified after the brutal slaying of journalist Jamal Khashoggi in 2018, which Khashoggi's killers are said to have answered to the crown prince.
Despite Western disapproval, Trump has stood by "MBS" throughout his reign. In 2017, the very same year he became de facto ruler, Trump chose Saudi Arabia as his first foreign destination post-inauguration. This time around, details of significant economic deals are expected to be announced during the trip.
Trump's State Fund - A Middle Eastern Mirror
Since his inauguration, the crown prince has centralized almost all the power under his leadership, with his father, King Salman, rarely seen in public. Supporters hail him as a visionary leader aiming to modernize the kingdom and diversify it away from its oil-dependent economy. These lofty goals, however, come with a serious crackdown on dissent, with some receiving lengthy prison sentences for social media posts.
The Saudi wealth, primarily derived from the oil and gas industry, is primarily housed in the Public Investment Fund (PIF), one of the world's largest state funds, with assets worth over $900 billion. PIF's investments are heavily concentrated in US companies, with the crown prince himself holding the reins as the fund's primary decision-maker. Plans are already underway to reach $2 trillion in assets by 2030. With such immense fiscal power, the crown prince can single-handedly dictate the country's economic direction.
Trump, too, has ambitious plans in this regard, announcing the establishment of a US state fund of similar size. It remains to be seen how he intends to rally support for such a mammoth undertaking.
The Trump Organization's Gulf Expansion
Trump and his family have a rich history of business dealings in the Gulf, which predate his presidency. For instance, in 2001, Trump sold the entire 45th floor of his Trump Tower in New York to the Kingdom. With the current trip, Trump is set to expand his business interests even further. In fact, just before his visit, the Trump Organization announced several new projects in the region, including a Trump Hotel in Dubai, a golf club in Qatar, and the construction of a Trump skyscraper in Jeddah, Saudi Arabia, which was announced last year. Trump's sons and their business partners have also recently collaborated on a Middle Eastern cryptocurrency venture backed by a state-supported fund from the Emirates.
The Ethics of Politics and Business
Some critics have raised concerns about potential conflicts of interest due to the Trump family's business dealings in the Gulf. However, the White House denies any impropriety, asserting that Trump's decisions are driven by national interests, not personal interests. Time will tell if Trump's Gulf excursion will lead to more deals or diplomatic entanglements, but one thing is clear: Trump's foreign policy remains firmly rooted in material gains for the US.
- The European Union, in alignment with the Paris Agreement, is exploring potential investments in the Gulf region's renewable energy sector, recognizing the vast resources available in this industry.
- In light of Trump's Gulf excursion, questions about the ethics of politics and business arise, as the President's financial ties to the Gulf States present a potential for conflicts of interest.
- The Public Investment Fund (PIF), a key player in the Gulf's finance sector, collaborates with significant US companies, furthering the interest of the energy industry and attracting potential business with the Trumps' involvement.
- The energy sector, a central part of the Gulf States' economies, is undergoing a transformation, with the Trump Administration and the European Union exploring investments to shift toward sustainable and renewable sources, reflecting general-news trends in global finance and politics.
