What to anticipate from Trump's journey to the mediate East

manager24.pl 1 month ago

This is not Donald Trump's first gathering with Mohammed bin Salman (MBS), the actual head of state of Saudi Arabia. Both gentlemen met in 2017, first in Washington and later in Riyadh. Now, however, transactions worth billions of dollars are to crown Trump's first visit from returning to the White House. According to Bloomberg, the presidents of many American companies, including BlackRock, travel to Riyadh, Citigroup and IBM.

‘MBS’, as he is frequently called, will most likely usage this chance to introduce himself as an indispensable man in the mediate East. According to observers, the power-hungry and unscrupulous ruler wants to improve the image of his kingdom and attract fresh investors who will rebuild the country under the 2030 programme. The monarch's imagination has in the past contributed to the modernisation of Saudi Arabia. This desert state is besides to host the planet Expo Exhibition in 2030 and the men's planet Football Championship in 2034.

Saudi Arabia has late faced the problem of attracting abroad direct investment and implementing major projects specified as the construction of the futuristic city of Neom in north-western Saudi Arabia. In 2024, abroad direct investment fell 3rd year in a row. This situation is expected to change in the average term. large business is on the agenda now, and the transactions made during Trump's journey to the mediate East will most likely be duly celebrated as part of an lavish accompanying program.

Trump himself had already boasted that he would agree to a $1 trillion investment and trade relation for American companies. According to reports, MBS has already promised that Riyadh will invest $600 billion in USA in 4 years. Not without calculation: MBS uses its links to Trump to gain better access to American military technology and artificial intelligence technology. On Tuesday, an American-Saudi Investment Forum was planned with the participation of the heads of American companies, whose subject will be technology, artificial intelligence and energy.

The United arabian Emirates in turn promised investment worth $1.4 trillion spread over a decade in the run-up to the mediate East. Qatar is expected to commit to investing respective 100 billion dollars at the Trump Summit in Dosze.

All arabian countries that Trump visited during his journey to the mediate East are struggling with a fall in oil prices. According to Bloomberg, many analysts foretell that in the foreseeable future prices will be between $60 and $65 per barrel. Analysts have calculated that this would be much little than the amount Saudi Arabia needs to stabilise its budget. The Kingdom has late been forced to borrow more: debt increased by about $30 billion in the first quarter, reaching the highest level in the past of the state.

But this visit besides has an crucial political dimension: Trump has not yet succeeded in achieving peace in the mediate East, just as he has not yet fulfilled his bold promises to end the war rapidly between Ukraine a Russia.

It is said that MBS is supporting Trump's peaceful ambitions. Saudi Arabia has already been considered as the site of Trump's planned gathering with Vladimir Putin Saudi Arabia hosted many talks with the US, Russia and Ukraine in February and March.

On the another hand, during Trump's voyage of the Gulf State will influence the US to guarantee that the president of the United States seeks to scope an agreement with Iran's eternal enemy on the muslim Republic's atomic program, reports the Financial Times. Trump will besides meet with the heads of Qatar and the United arabian Emirates (UAE) in the mediate East.

However, political analysts uncertainty that Trump will win in reaching an crucial political agreement that will lead to normalisation of relations between Saudi Arabia and Israel. The 19-month war between Israel and Hamas in the Gaza Strip caused confusion in the region. "There is no request to hide that it is Gaza, but the emphasis will be on economical agreements," quotes the diplomat's diary "FT".

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