President Donald Trump’s recent Middle East tour, encompassing Saudi Arabia, Qatar, and the UAE, has culminated in a flurry of significant business deals, particularly in AI and energy sectors. While the White House touts these agreements as a boon for the U.S. economy, critics are raising serious conflict of interest concerns due to the direct involvement of Trump family businesses in some of these lucrative ventures.
Billions in Deals, But How Much is Real?
Trump’s administration claims over $2 trillion in combined deals were secured during the tour. However, a Reuters analysis indicates the verifiable value is closer to $700 billion. Many of these agreements are non-binding memorandums of understanding (MoUs), which do not guarantee actual transactions. Financial experts and diplomats suggest that the headline figures have been inflated by both sides to showcase cooperation.
Key Takeaways
- AI and Semiconductor Deals: The UAE and U.S. agreed on a path for Abu Dhabi to acquire advanced AI semiconductors, a major step towards the UAE’s goal of becoming a global AI hub. This includes a commitment to manage data centers with U.S. companies.
- Energy Investments: The UAE’s Abu Dhabi National Oil Company (ADNOC) pledged to increase its energy investments in the U.S. to $440 billion by 2035, up from $70 billion currently. This includes $60 billion in new investments in upstream oil and gas.
- Aerospace Orders: New deals with the UAE, totaling over $200 billion, include a $14.5 billion commitment from Etihad Airways for 28 American-made Boeing aircraft.
- Syria Policy Shift: Trump announced the lifting of sanctions on Syria, paving the way for an $800 million deal between the Syrian government and Dubai-based DP World to develop Syria’s port of Tartous.
Trump Family’s Crypto Controversy
A significant point of contention is the involvement of World Liberty Financial, a cryptocurrency firm backed by the Trump family. An Abu Dhabi-backed firm, MGX, announced it would use USD1, World Liberty Financial’s stablecoin, for a $2 billion purchase of a minority stake in Binance, the world’s largest crypto exchange. Donald Trump serves as the company’s "chief crypto advocate," with his sons Eric Trump and Donald Trump Jr. as "Web3 ambassadors," and Barron Trump as "DeFi visionary."
Critics, including Senator Elizabeth Warren, have labeled this a "corrupt" and "likely illegal" arrangement, citing potential conflicts of interest given the Trump family’s direct financial benefit from a deal involving a foreign government and a company (Binance) under U.S. federal oversight. The White House maintains that Trump’s assets are in a trust managed by his children, asserting no conflict of interest.
Beyond the Numbers: Strategic Gains
Despite the financial ambiguities, the tour yielded strategic gains for the Gulf nations:
- Saudi Arabia: Moved closer to developing a civil nuclear energy industry, delinked from normalizing relations with Israel.
- UAE: Secured a framework for acquiring advanced semiconductors, bolstering its AI ambitions.
- Qatar: Received assurances of U.S. protection in case of attack.
These developments highlight a deepening economic and strategic alignment between the U.S. and Gulf states, even as the intertwining of political power and private business interests draws scrutiny.
Sources
- Trump wraps up Gulf tour with AI and energy deals in UAE, Reuters.
- What are the Gulf ‘trillions’ that Trump says will boost the US economy?, Reuters.
- UAE-backed firm to use Trump family crypto to buy $2B stake in Binance, New York Post.
- $60 billion in U.S. investments secured by ADNOC during UAE-U.S. business dialogue, Economy Middle East.
- Trump’s Middle East business surge prompts conflict of interest attacks from critics, Newsweek.
