Trump begins Gulf tour with Saudi Arabia visit, focuses on economic ties

Trump is expected to announce several economic and investment agreements during his stay. A US-Saudi investment forum is taking place in Riyadh, where American and Saudi business leaders are discussing potential partnerships.

President Donald Trump and Saudi Crown Prince Mohammed bin Salman walk during an arrival ceremony at the Royal Palace in Riyadh, Saudi Arabia, Tuesday, May 13, 2025. (AP)

Tesla and SpaceX CEO Elon Musk is travelling with the president, along with BlackRock CEO Larry Fink, Citigroup CEO Jane Fraser and Blackstone Group’s Stephen Schwarzman. Secretary of State Marco Rubio, National Security Adviser and Defence Secretary Pete Hegseth are also part of the delegation.

In remarks shared by the Saudi Investment Ministry, Minister Khalid al-Falih said, “When Saudis and Americans join forces, very good things happen  more often than not, great things happen.”

As part of the discussions, Trump is expected to offer Saudi Arabia a new arms package. According to Reuters, the proposed deal is worth more than $100 billion and may include C-130 transport aircraft and other advanced weapons systems.

During lunch at the Royal Court, Trump met with Saudi business leaders and officials. AP reported that the two sides discussed ways to boost cooperation in areas such as energy and technology.

Trump’s stop in Saudi Arabia follows early support from OPEC+ countries, including Saudi Arabia, to increase oil production. Trump has said cheaper energy is important for lowering inflation in the US and may help reduce global tensions, including the war in Ukraine.

President Donald Trump and Saudi Crown Prince Mohammed bin Salman speak during a meeting at the Royal Palace in Riyadh, Saudi Arabia, Tuesday, May 13, 2025. (AP)

Though economic ties are at the centre of the visit, tensions in the region, including the conflict in Gaza and concerns over Iran’s nuclear programme, remain in the background.

Trump will travel to Qatar on Wednesday and to the United Arab Emirates on Thursday. Each country has major Trump Organisation real estate projects under development, including a high-rise tower in Jeddah, a luxury hotel in Dubai and a golf course and villa complex in Qatar.

Speaking to reporters, Trump confirmed he would not visit Israel during this trip. He said he may stop in Turkey on Thursday to attend possible talks between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy.

Trump also addressed criticism over accepting a $400 million aircraft from the Qatari royal family to replace Air Force One. “It would be stupid not to accept the gift,” he said. “It is a very public and transparent transaction.”

This marks Trump’s second presidential term, and his visit to Riyadh continues his administration’s focus on transactional diplomacy and investment-driven foreign relations.