Description: US President Donald Trump has begun his so-called Gulf tour with an initial visit in the Kingdom of Saudi Arabia where he was warmly welcomed by his partner the Crown Prince Mohammed bin Salman. Trump’s visit was interactive as he attended the US – Saudi Business forum in Riyadh where high – level executives were present such as Blackstone Group’s CEO, Stephen Schwarzman, BlackRock CEO Larry Fink and Tesla’s Elon Musk. While hailing the US – Saudi strategic partnership Trump announced multiple bilateral agreements with the Kingdom in various business sectors which would incentivize close cooperation between both countries in the military, technological, justice and cultural departments. He also announced a historic $142 billion arms deal and confirmed Saudi Arabia’s commitment of $600 billion in oil and power investments in the US. The US President used the opportunity to announce that sanctions on Syria would be lifted and also touched upon the ongoing nuclear negotiations with Iran, warning the regime in Tehran that if no deal is concluded the country would suffer serious consequences. Trump is set to continue his Gulf tour in Qatar and the UAE where he is also expected to conclude mutually beneficial cooperation agreements.
Impact: On the back of high-profile media campaign, Trump’s Gulf tour commenced to shape towards securing and extending crucial strategic partnerships. The US President once again focused on developing key economic partnerships with the US’ longstanding ally Saudi Arabia, which in return aims to distance itself from being largely dependent on oil revenues and diversify its economic and investment portfolio. Trump’s lifting of Syria’s sanctions was a result of a lobbying campaign from the Kingdom’s political establishment and Turkish President Recep Tayyip Erdogan. Despite the US military withdrawal from Syria, Trump, by lifting the sanctions restated he wanted to stay present and vigilant in Syria as multiple regional and global players are attempting to establish a stable foothold of influence within the country. The US – Saudi summit hosting the CEOs of the largest business conglomerates globally such as Blackstone Group and BlackRock emphasizes the interconnectedness between the political elites in both countries and larger companies generating billions to stimulate the global and domestic economies. Trump’s first foreign visit was mostly embroiled in securing and bolstering key US strategic partnership with Saudi Arabia since the US energy sector is largely dependent on the Kingdom’s oil exports while Saudi Arabia is looking to remain a strong US ally in the Middle East.