Explainer
According to Bloomberg News, the US aims to quickly invest in the UAE, Saudi Arabia and Qatar.
President Donald Trump’s administration reportedly discussed the possibility of stimulating investment by the United Arab Emirates, Saudi Arabia and Qatar before traveling to the region next week.
The early stage speech was first reported by Bloomberg News. Such developments require the US government to reform the Committee on Foreign Investment in the US (CFIUS), an interagency organisation led by the US Department of Treasury. This includes representatives from the Department of Commercial, Defense and Homeland Security.
It’s not clear what reforms will entail, but the goal is to quickly track investments from these countries that have encouraged close working relationships during his first term and brought billions of dollars to the US economy.
The President may release more information on the state of changes that accompany his visit, which begins on May 13th.
Surge in investment
Five of the top 10 most active funds come from these three countries. Three of these five funds are in the UAE. In March, UAE national security adviser Sheikh Tahnoon Bin Zayed met with the president, and in the next decade he committed a $1.4 trillion investment in the United States.
The commitments include investments in sectors such as artificial intelligence, energy and aluminum manufacturing, including the first new aluminium smelter in the United States in 35 years. It also includes a $1.2 billion mining partnership with Abu Dhabi-based ADQ, Sovereign Wealth Fund, and Orion Resource Partners, an investment company based in New York for “critical minerals” in Africa, Asia and Latin America.
The largest segment of proposed investments is artificial intelligence. The Abu Dhabi-based investment fund called MGX has pledged to invest $100 billion in data centers and energy infrastructure to support American AI development.
In January, Trump took office within a week, and Saudi Arabia promised to spend $600 million in the US over the next four years. Trump later said at the World Economic Forum in Davos, Switzerland that he pushed the country to invest $1 trillion in the economy. Trump and Crown Prince Mohammed bin Salman have a close relationship. The two developed during Trump’s first term.
Qatar already had strong investment ties with the US. In 2015, the Qatar Investment Authority pledged $35 billion in investment and opened offices in New York and Washington to promote investment. QIA later committed $45 billion in 2019.
QIA’s most notable investments include $200 million in Eatjust, the alternative meat and egg brand Eatjust, and a 10% stake in Empire State Building, including its major real estate investments in New York City.
Concerns of conflict of interest
There was no direct involvement of the Trump organization – a private company that houses brands owned by Trump’s family, including Trump’s hotels and golf resorts – Trump’s upcoming trips and quick tracing of proposed investments sparked conflict of interest concerns.
A month after winning the US election, the Trump organization announced that it had leased its brand to two new real estate projects in Saudi Arabia.
The president’s company is also doing projects and developments to all three countries he plans to visit, which may receive fast truck status for investment.
“This trip, where Trump meets foreigners with the ability to make decisions that affect his company and business partners, will bring a major conflict of interest to Trump, who is engaged in significantly more foreign businesses than his first term,” Washington’s Citizens for Responsibility and Ethics wrote in a memo released Thursday.
On April 30, the Trump organization, led by his son Eric, announced a new luxury golf resort in Qatar. Unlike the first Trump administration, the Trump organization said it would not move away from foreign property investments ahead of Trump’s inauguration in January.