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Trump starts Gulf visit in Saudi Arabia, focus on mega economic deals

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Last Updated on: May 14, 2025

U.S. President Donald Trump began a tour of wealthy Gulf states on Tuesday by visiting Saudi Arabia, with his focus on securing trillions of dollars in investments rather than security issues ranging from war in Gaza to Iran’s nuclear program.

Emerging from Air Force One, Trump punched the air in a show of solidarity when Crown Prince Mohammed bin Salman greeted him at the airport after his arrival in Riyadh with a who’s who of business leaders in tow including billionaire Elon Musk.

Trump will go on from Riyadh, which is hosting a Saudi-US Investment Forum, to Qatar on Wednesday and the United Arab Emirates on Thursday. But he has not scheduled a stop in Israel, a decision that has raised questions about where the close ally stands in Washington’s priorities.

“While energy remains a cornerstone of our relationship, the investments and business opportunities in the kingdom have expanded and multiplied many, many times over,” Saudi Investment Minister Khalid al-Falih said as he opened the forum.

“As a result … when Saudis and Americans join forces very good things happen, more often than not great things happen when those joint ventures happen,” he said before Trump’s arrival.

Trump hopes to secure trillions of dollars of investments from the Gulf oil producers. Saudi Arabia had pledged $600 billion but Trump has said he wants $1 trillion from the kingdom, one of Washington’s most important strategic partners.

The Saudi-US Investment Forum began with a video showing soaring eagles and falcons that celebrated the long history between the United States and the kingdom.

At the front of a palatial hall sat Larry Fink, the CEO of asset management firm BlackRock, Stephen A. Schwartzman, CEO of asset manager Blackstone, Treasury Secretary Scott Bessent, and Saudi Finance Minister Mohammed Al Jadaan and Falih.

Speaking at a forum panel, Fink said he had traveled to Saudi Arabia more than 65 times over 20 years. While the kingdom had been a follower when he first started visiting, it was now “taking control” and broadening its economy out of its oil base, he said.

Musk chatted briefly with both Trump and the crown prince, who is otherwise known as MbS, during a reception at a palace for the U.S. president.

MbS has focused on diversifying the kingdom’s economy in a major reform programme dubbed Vision 2030 that includes “Giga-projects” such as NEOM, a futuristic city the size of Belgium.

The kingdom has had to scale back some of its lofty ambitions as rising costs and falling oil prices weigh.

Joining Trump for a lunch with MbS are top U.S. businessmen including Musk, the Tesla and SpaceX chief, and OpenAI CEO Sam Altman.

LONG TIES BASED ON OIL AND SECURITY

Saudi Arabia and the U.S. have maintained strong ties for decades based on an ironclad arrangement in which the kingdom delivers oil and the superpower provides security.

Trump has also said he may travel on Thursday to Turkey for potential talks between Vladimir Putin and Volodymyr Zelenskiy on Russia’s war in Ukraine. An aide to Zelenskiy said the Ukrainian president would take part only if Putin does. The Russian leader has not said if he will attend, and has questioned Zelenskiy’s legitimacy.

Trump’s second foreign trip since returning to the presidency in January – his first was to Rome for Pope Francis’ funeral – comes at a time of geopolitical tension.

In addition to pressing for a settlement in Ukraine, his administration is pushing for a new aid mechanism for Gaza after 19 months of war and urging Israeli Prime Minister Benjamin Netanyahu to agree a new ceasefire deal there.

Israeli officials have put a brave face on Trump’s decision to bypass Israel during his trip but there are growing doubts in Israel about its position in his priorities as frustration mounts in Washington over the failure to end the Gaza war.

Over the weekend, U.S. and Iranian negotiators met in Oman to discuss a potential deal to curb Tehran’s nuclear program. Trump has threatened military action against Iran if diplomacy fails.

Iran’s Nournews quoted armed forces chief of staff Mohammad Bagheri as saying on Tuesday that Iran’s neighbours should retain neutrality and that any aggression against Iran would lead to definitive retaliation.

Trump is expected to offer Saudi Arabia an arms package worth more than $100 billion, sources told Reuters. This could include a range of advanced weapons.

Trump’s Middle East envoy, Steve Witkoff, said last week he expected progress imminently on expanding the Abraham Accords, a set of deals brokered by Trump in his first term by which Arab states including the UAE, Bahrain and Morocco recognised Israel.

But opposition by Netanyahu to a permanent stop to the war in Gaza or to the creation of a Palestinian state makes progress on similar talks with Riyadh unlikely, sources told Reuters.

(Reuters)

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Pakistan’s leaders dread US Democrats’ win but its households are praying for it

Pakistan’s courtship of Trump, capped by its mediation in ​the Iran war, earned it a close relationship with his administration. That access has yet to deliver clear economic gains, and congressional scrutiny of Islamabad’s dealings with Trump’s inner ​circle now threatens the rewards its leaders hoped would follow.

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Pakistan’s leaders spent two years courting US President Donald Trump, but after the Democrats’ win in Tuesday’s congressional vote, they are preparing for scrutiny ​of their access to the White House.

Ordinary Pakistanis see the result differently. Many hope the shift in Washington will ease a cost-of-living crisis intensified ‌by the US-Israel war on Iran, Reuters reported.

“We believe meaningful negotiations with the current US administration are not possible, and the ongoing bloodshed will not end until there is a change in [the US] ​government,” Karachi resident Sajjad Ali said.

“We want peace, economic improvement and a reduction in the rising oil prices.”

Asim Zafar, also from Karachi, said he hoped ​the results would rein in Trump. “It could bring changes in important policies and perhaps help prevent some of the injustices being committed ⁠against Muslim countries,” he said.

But for Pakistan’s government and powerful military leadership, analysts say, the outcome is far more worrying.

Pakistan’s courtship of Trump, capped by its mediation in ​the Iran war, earned it a close relationship with his administration. That access has yet to deliver clear economic gains, and congressional scrutiny of Islamabad’s dealings with Trump’s inner ​circle now threatens the rewards its leaders hoped would follow.

A BET ON ONE MAN

The courtship began early in Trump’s second term, with army chief Asim Munir — who Trump has repeatedly described as his “favourite field marshal” — as Islamabad’s main channel to the White House.

Their June 2025 lunch took place unusually without Pakistani civilian officials present, which put the military at the centre of the rapprochement.

According to Pakistan’s military, ​their talks went beyond security to cooperation in mining, energy and cryptocurrency.

Pakistan then joined Trump’s Board of Peace and nominated him for the Nobel Peace Prize, crediting him with ​helping end its May 2025 conflict with India. New Delhi denies US mediation halted hostilities.

Earlier this year, Iran mediation gave the courtship strategic substance: Islamabad relayed messages and hosted April talks between the ‌US and ⁠Iran, but the eventual Islamabad Agreement quickly faltered.

For consumers, Pakistan’s rising diplomatic influence has offered little protection from the war’s costs while the payoff for the state has also been thin. The US Export-Import Bank approved $1.25 billion for Pakistan’s Reko Diq copper and gold project in December 2025. But Pakistan’s signature $10 billion request for a US Treasury facility remains unanswered.

DEALS UNDER SCRUTINY

Pakistan’s outreach, public and private, now carries political risk because several arrangements involve Trump’s family or close associates.

Islamabad has signed memoranda to explore payments in USD1, a stablecoin issued ​by the Trump-linked World Liberty Financial. At ​the signing in January, Finance Minister ⁠Muhammad Aurangzeb said innovation should be “aligned with regulation, stability, and national interest.”

It has also signed another memorandum to redevelop Manhattan’s Roosevelt Hotel, a deal negotiated by envoy Steve Witkoff, and placed a limited drone order with Powerus, whose investors include Trump’s sons Donald Jr. and ​Eric.

“There are no conflicts of interest,” White House spokeswoman Anna Kelly told Reuters in September, when asked about Powerus.

Husain Haqqani, ​a former Pakistani ambassador ⁠to Washington and senior fellow at the Abu Dhabi-based Anwar Gargash Diplomatic Academy, said Pakistan’s leaders had “built a transactional relationship” with Trump’s team. Some arrangements involving the president’s friends and relatives “might not last,” he said. “Pakistan seems totally unprepared for that scrutiny.”

Daniel Markey, a senior fellow at the Washington-based Stimson Center, warned that investigations could taint the wider relationship if dealings appeared ⁠driven by ​private interests.

From Pakistan’s perspective, there may still be cards left to play, analysts said.

The Atlantic Council’s Michael ​Kugelman said Pakistan’s counterterrorism cooperation and Iran diplomacy enjoyed bipartisan support, and Democrats would be more likely to blame problematic deals on Trump than on Pakistan.

But “the risk for Pakistan is that it put so many of ​its diplomatic eggs in the White House basket that it won’t have anything left for the Democrats,” Kugelman said.

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Iran sent nuclear proposal to the US via Qatar, senior Iranian official tells Reuters

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Iran has sent the United States a nuclear proposal via Qatar, to ​be discussed only after Washington meets Tehran’s seven demands, ‌a senior Iranian official told Reuters on Thursday.

The official, who spoke on condition of anonymity, said the US was reviewing the proposal but ​declined to provide further details.

Mediators have intensified efforts to ​end the war between Iran and the United States ⁠amid fears it could reignite after the US midterm ​elections, with Trump on Tuesday declining to rule out a resumption ​of combat operations after the vote and Iran planning wider retaliation if war resumes.

Iran’s top security official Mohsen Rezaei had said earlier on ​Thursday, during a visit to Russia: “On the issue of diplomacy, ​we have announced seven conditions to the Americans. As long as they ‌do ⁠not execute our seven conditions, we will neither open the Strait of Hormuz nor have negotiations”.

Iran has demanded the lifting of US sanctions, the release of frozen Iranian assets and war ​reparations, among other ​conditions, while Washington ⁠has said nuclear issues must be part of any initial negotiations.

The US and Israel attacked ​Iran on February 28, and Iran responded with ​strikes ⁠on Israel and Gulf states that host US bases. Conflict also erupted in Lebanon between Iran-backed Hezbollah and Israel, and more ⁠recently ​spread to Yemen, from where the ​Iran-aligned Houthis have struck energy facilities, airports and other targets in Saudi Arabia.

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Iran says US voted ‘No to War’ after Republican midterm losses

The comments came after US President Donald Trump acknowledged that the war with Iran and rising petrol prices had contributed to the Republicans’ poor election performance.

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Iran’s chief negotiator and parliament speaker, Mohammed Bagher Ghalibaf, has said American voters sent a clear message against war following major Republican losses in the US midterm elections, declaring that Tehran endorses their position.
 
“We endorse this message,” Ghalibaf wrote on X, referring to the election results.
 
He warned that if Washington ignored public opposition to the conflict in favour of outside interests, it would face serious consequences.
 
The comments came after US President Donald Trump acknowledged that the war with Iran and rising petrol prices had contributed to the Republicans’ poor election performance.
 
Speaking to Fox News, Trump said Iran had played a part in the results, adding that while many Americans supported his approach, they were less willing to bear the immediate financial consequences of higher fuel prices.
 
In a separate interview with CBS News, Trump said the conflict would end “when I say it ends”.
 
Trump has also warned that the United States and Israel could resume large-scale military operations against Iran if negotiations fail to produce an agreement.
 
Iran’s Supreme Leader Mojtaba Khamenei, who has not appeared in public since reportedly being seriously wounded in an Israeli air strike that killed his predecessor and father, Ali Khamenei, warned that any renewed conflict would have much wider consequences.
 
He also dismissed expectations of a change in US policy towards Iran, describing such hopes as a serious miscalculation.
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