Trump aims for $1 trillion investment pact with Riyadh despite tensions

The US president begins a state visit to Saudi Arabia focused on an ambitious economic partnership, sidelining Saudi-Israeli normalisation due to the Gaza war.

Share:

US President Donald Trump is set to begin a state visit to Saudi Arabia with the objective of concluding an investment partnership reaching $1 trillion in strategic American sectors. This initiative, supported by an initial pledge of $600 billion from Crown Prince Mohammed bin Salman, comes amid a tense geopolitical climate, where hopes for normalising relations between Israel and Saudi Arabia remain largely out of reach.

Normalisation talks put on hold

According to several sources close to diplomatic circles cited by Reuters, the ongoing war in Gaza is a major obstacle to any resumption of talks between Riyadh and Tel Aviv. A ceasefire is being demanded by Saudi authorities as a prerequisite, but this condition faces opposition from Israeli Prime Minister Benjamin Netanyahu, particularly on the issue of a Palestinian state.

Despite the framework laid during Trump’s first term through the Abraham Accords, the current situation has led both parties to decouple normalisation from other aspects of their bilateral relations, including economic and security cooperation. The crown prince now requires an end to the Gaza conflict and a credible process toward the creation of a Palestinian state before returning to diplomatic negotiations.

Focus on economic and defence projects

Pre-visit discussions highlighted partnerships in the fields of arms manufacturing, artificial intelligence technologies and large-scale infrastructure projects. The trip also marks the resumption of talks on a US-Saudi security pact, initially envisioned as a formal treaty but now pursued in the form of more flexible bilateral security guarantees.

A civilian nuclear agreement is also on the agenda, according to three diplomatic sources. It aims to bolster Saudi Arabia’s energy capacities while meeting conditions set by the US Congress. The Trump administration seeks to leverage these economic commitments to reinforce US influence in the region and counter China’s growing presence.

Chinese influence and calls for regulatory relief

China has become increasingly embedded in Saudi Arabia’s development plans, notably through the Vision 2030 programme, with targeted investments in energy, infrastructure and renewables. In response to this strategic rivalry, Saudi leaders intend to use Trump’s visit to advocate for easing US regulations that limit foreign investments in sectors deemed critical.

Representatives of the Saudi government plan to urge Washington to adopt a more investor-friendly regulatory framework, particularly to facilitate capital flows from the Gulf. The aim is to attract more funds to the United States as Beijing intensifies efforts to divert this capital toward Asia.

A precedent that shapes expectations

The current visit echoes Trump’s first overseas trip in 2017, which was marked by the announcement of $350 billion in economic commitments between the two nations. According to Robert Mogielnicki, a scholar at the Arab Gulf States Institute, “the priority now is to maximise the economic and diplomatic impact of the trip without upsetting regional sensitivities.”

Trump is not scheduled to stop in Israel during this Middle East tour. Two diplomats also noted the recent absence of references to his controversial proposal to resettle Gaza’s population, a silence seen as strategic ahead of bilateral talks in Riyadh.

Uganda is relying on a diplomatic presence in Vienna to facilitate technical and commercial cooperation with the International Atomic Energy Agency, supporting its ambitions in the civil nuclear sector.
The governments of Saudi Arabia and Syria conclude an unprecedented partnership covering oil, gas, electricity interconnection and renewable energies, with the aim of boosting their exchanges and investments in the energy sector.
The European commitment to purchase $250bn of American energy annually raises questions about its technical and economic feasibility in light of limited export capacity.
A major customs agreement sealed in Scotland sets a 15% tariff on most European exports to the United States, accompanied by significant energy purchase commitments and cross-investments between the two powers.
Qatar has warned that it could stop its liquefied natural gas deliveries to the European Union in response to the new European directive on due diligence and climate transition.
The Brazilian mining sector is drawing US attention as diplomatic discussions and tariff measures threaten to disrupt the balance of strategic minerals trade.
Afghanistan and Turkmenistan reaffirmed their commitment to deepening their bilateral partnership during a meeting between officials from both countries, with a particular focus on major infrastructure projects and energy cooperation.
The European Union lowers the price cap on Russian crude oil and extends sanctions to vessels and entities involved in circumvention, as coordination with the United States remains pending.
Brazil adopts new rules allowing immediate commercial measures to counter the U.S. decision to impose an exceptional 50% customs tariff on all Brazilian exports, threatening stability in bilateral trade valued at billions of dollars.
Several international agencies have echoed warnings by Teresa Ribera, Vice-President of the European Commission, about commercial risks related to Chinese competition, emphasizing the EU's refusal to engage in a price war.
The European Bank for Reconstruction and Development lends €400 million to JSC Energocom to diversify Moldova's gas and electricity supply, historically dependent on Russian imports via Ukraine.
BRICS adopt a joint financial framework aimed at supporting emerging economies while criticizing European carbon border tax mechanisms, deemed discriminatory and risky for their strategic trade relations.
The European Commission is launching an alliance with member states and industrial players to secure the supply of critical chemicals, amid growing competition from the United States and China.
Trade between Russia and Saudi Arabia grew by over 60% in 2024 to surpass USD 3.8 billion, according to Russian Minister of Industry and Trade Anton Alikhanov, who outlined new avenues for industrial cooperation.
Meeting in Rio, BRICS nations urge global energy market stability, openly condemning Western sanctions and tariff mechanisms in a tense economic and geopolitical context.
Despite strong ties, Iran's dependence on oil revenues limits its ability to secure substantial strategic support from Russia and China amid current international and regional crises, according to several experts.
Egypt’s Electricity Minister engages in new talks with Envision Group, Windey, LONGi, China Energy, PowerChina, and ToNGWEI to boost local industry and attract investments in renewable energy.
The potential closure of the Strait of Hormuz places Gulf producers under intense pressure, highlighting their diplomatic and logistical limitations as a blockage threatens 20 million daily barrels of hydrocarbons destined for global markets.
Budapest and Bratislava jointly reject the European Commission's proposal to ban Russian energy supplies, highlighting significant economic risks and a direct threat to their energy security, days ahead of a key meeting.
Libya officially contests Greece's allocation of offshore oil permits, exacerbating regional tensions over disputed maritime areas south of Crete, rich in hydrocarbons and contested by several Mediterranean states.