President Donald Trump finalized a massive $600 billion economic pact with Saudi Arabia’s Crown Prince Mohammed bin Salman on Tuesday in Riyadh. The agreement encompasses collaborations across several sectors, including defense, energy, and mining.
Trump began a four-day tour of the Middle East with a strong focus on securing business deals with a long-standing partner, even as tensions surrounding Iran’s nuclear ambitions and the war in Gaza persisted in the background.
As Trump exited Air Force One at King Khalid International Airport, he was received with great ceremony by Prince Mohammed, often referred to as MbS. The leaders then headed into an opulent hall at the airport, where Saudi attendants dressed in traditional garb served Arabic coffee.
“I really believe we like each other a lot,” Trump remarked during a media moment with the crown prince ahead of their one-on-one meeting.
Their discussions resulted in over a dozen new agreements aimed at deepening ties between their countries’ military forces, legal systems, and cultural organizations. More commercial contracts were expected to be signed during a U.S.-Saudi investment event held the same day.
Prince Mohammed has already pledged $600 billion in Saudi investments for the American economy, though Trump hinted there might be more to come, saying a trillion-dollar figure would be even more impressive.
Even before landing, the red-carpet treatment had already begun. Saudi F-15 fighter jets flanked Air Force One in a dramatic show of respect as it neared Riyadh—an extremely rare honor for any foreign dignitary.
Later, Trump and the crown prince participated in an official lunch and welcome ceremony at Al Yamamah Palace, joined by senior aides and guests in a lavish hall adorned with gold and blue hues and glittering chandeliers.
Standing next to Trump, Prince Mohammed was all smiles as he engaged animatedly with top business leaders.
The vibrant reception stood in sharp contrast to the awkward 2022 interaction between MbS and then-President Joe Biden, who went out of his way to avoid shaking the prince’s hand during his visit amid political tensions.
Biden’s visit at the time was primarily aimed at addressing soaring gas prices. The prince’s global standing had taken a hit following a U.S. intelligence assessment that concluded he was responsible for journalist Jamal Khashoggi’s murder in 2018.
But that controversy seemed to be in the rearview mirror on Tuesday, as Prince Mohammed mingled confidently with business titans like Blackstone’s Stephen Schwarzman, BlackRock’s Larry Fink, and Elon Musk of Tesla and SpaceX, with Trump prominently at his side.
Trump will later be honored with a special state dinner at Ad-Diriyah, a historic site and UNESCO World Heritage location that marks the origins of the Saudi state. The area is a centerpiece of one of Prince Mohammed’s flagship development projects.
The Saudis and their OPEC+ partners had already made a strategic move to increase oil output, which aligned with Trump’s domestic economic priorities. He has argued that more affordable energy is essential to taming inflation and reducing the financial strain on Americans, and might also help bring an end to the Russia-Ukraine conflict.
Yet, Saudi Arabia’s own fiscal stability is heavily reliant on oil revenues, needing oil to sell at roughly $96 to $98 per barrel to balance its budget. The Brent crude price was just $64.77 per barrel on Monday, raising questions about how long the kingdom can afford to maintain increased production.
Trump chose Saudi Arabia as his opening stop to showcase the kingdom’s financial commitments to the U.S., even though he had made an unplanned trip to Italy the previous month for Pope Francis’ funeral. This visit marked his second time starting a term with a high-profile trip to Riyadh.
The countries Trump is visiting — Saudi Arabia, the UAE, and Qatar — all host major real estate developments spearheaded by the Trump Organization, which is managed by his eldest sons. These include a tower in Jeddah, a five-star hotel in Dubai, and a luxury golf resort in Qatar.
With critics accusing his foreign policy of alienating allies due to tariff wars and an unconventional approach to global conflict, Trump is using this trip to highlight what he sees as concrete gains from his deal-centric diplomacy.
He is expected to unveil new agreements involving artificial intelligence, joint energy ventures, and possibly arms sales. The administration recently gave preliminary approval for a $3.5 billion deal to supply Saudi Arabia with air-to-air missiles.
Still, Trump’s visit comes at a time when both Israel and Saudi Arabia are not fully aligned with the White House’s regional strategy.
Before departing, Trump declared an end to a U.S. airstrike campaign targeting Yemen’s Houthi militants, citing their promise to cease attacks on ships traveling through key maritime routes. Notably, Israel — a frequent target of the Houthis — was left out of the loop.
This move echoed previous instances where Trump kept Israel in the dark, such as during backchannel talks with Hamas and renewed negotiations over Iran’s nuclear ambitions — both revealed to Israeli Prime Minister Benjamin Netanyahu only after they were already underway.
“Israel will defend itself by itself,” Netanyahu said last week following Trump’s ceasefire with the Houthis. “If others join us — our American friends — all the better.”
William Wechsler, who oversees Middle East affairs at the Atlantic Council, said the absence of Israel from Trump’s itinerary was telling.
“The main message coming out of this, at least as the itinerary stands today, is that the governments of the Gulf … are in fact stronger friends to President Trump than the current government of Israel at this moment,” Wechsler noted.
Trump’s broader ambition remains to broker a new phase of regional normalization, expanding on the Abraham Accords that brought Israel into diplomatic relations with several Arab states including Bahrain, Morocco, Sudan, and the UAE.
But Saudi Arabia has laid out steep demands for formal ties with Israel: firm U.S. security assurances, cooperation on a civilian nuclear program, and tangible progress toward Palestinian statehood — conditions that seem almost impossible as war continues in Gaza and Israel threatens further military escalation.
In a move that may signal Riyadh’s positioning, Prince Mohammed recently hosted Palestinian Authority Vice President Hussein al-Sheikh in Jeddah, marking the official’s first overseas trip since taking office in April.
{Matzav.com}