Arab countries hope for large American companies in the middle of the war in Gaza – DW – 05/10/2025
US President Donald TrumpalReady has a ready gift for his three host countries – Saudi Arabia, Qatar and the United Arab Emirates – before the first foreign trip to his second presidency, which should start on Tuesday.
According to US officials, Trump has started to start referring to the Persian Gulf – the body of water that separates the Gulf States and Saudi Arabia from the country, its official name is associated with Iran – as a Arab Gulf or the Gulf of Arabia.
Although Trump does not have the power to officially change the name, symbolism is important. The Arab nations has long been pushing to change their names, while Iran has highlighted its own historical links with the Gulf.
Trump also promised a “very, very big announcement” during his trip to the Middle East. “It will be one of the most important announcements that have been made for many years on a certain subject, a very important subject,” said Trump, somewhat cryptically.
Hopes and Arab concerns
But what does Trump want to realize? “Each of the Gulf's destinations, Saudi Arabia, Qatar and the United Arab Emirates, hold a set of political priorities for the US President Trump,” said Burcu Ozcelik, principal researcher for the security of the Middle East to the London Royal United SERVICE (RUSI).
“Riyadh needs foreign direct investments to achieve his 2030 vision reform objectives and does not want to be frozen with the opportunities that water has locked up by joining the Abraham agreements [US-brokered diplomatic normalization agreements between Israel and a set of Arab countries]”Ozcelik told DW.
Before diplomacy in the region was derailed by Hamas' terrorist attack against Israel on October 7, 2023 and the war that resulted in Gaza, Israel and Saudi Arabia was about to establish diplomatic ties. The United States Agreement between Jerusalem and Riyadh was almost a trilateral agreement, as the United States would have granted security guarantees, a light almost nato for Saudi Arabia and a Saudi civilian nuclear program.
However, an agreement between Saudi Arabia and Israel is currently far possible, because “the kingdom cannot go back from its” red line “, namely a credible path to the Palestinian state,” added Ozcelik.
According to diplomatic sources in Washington, the Saudi Foreign Minister, Prince Faisal, Bin Farhan insisted during his visit to the White House in April that Israel was held on the agenda during Trump's visit.
“The Saudi party favors business to avoid an uncomfortable situation,” said Dw Emily Tasinato, Gulf researcher and colleague of the European Council for Foreign Relations (ECFR).
At the same time, there are “indications that Riyadh and the Trump administration advance with other aspects of the Mega agreement, regardless of the process of standardization between Saudi Arabia and Israel,” she said.
“One aspect implies the Saudi civilian nuclear program, where Trump now seems ready to discuss cooperation without obliging the kingdom to establish diplomatic links with Israel,” said Tasinato, adding that “another concerns the defense, even if it is not in the format of a binding defense treaty, because it is something that does not require a matter of Israel.”
Sanam Vakil, director of the Middle East and North Africa program at the London Chatham House Relands based on the Chatham House, also believes that the conflict between Israel and Gaza will be sidelined during Trump's next trip.
“The Arab countries expect Trump's visit to promote greater economic commitment, while the visit will also focus on promoting regional security cooperation with a CCG meeting [Gulf Cooperation Council, an alliance of Saudi Arabia, the UAE, Bahrain, Qatar, Kuwait and Oman]”She told DW.
But Vakil also believes “that this meeting will serve as a coverage for any real progress on Gaza,” she said.
Although he is in the region, Trump did not plan a meeting with Israeli Prime Minister Benjamin Netanyahu.
Focus on large companies
“I consider business as the key element to assess the participations during the Trump Gulf tour,” said Tasinato d'Ecfr.
“Several leaders of American defense companies are expected to join Trump during his trip to the kingdom,” she said, adding that “Riyad, Doha and Abu Dhabi have all promised significant American investments before Trump's visit”.
“Saudi management is pursuing investments and partnerships with American companies and has offered $ 600 billion [€533 billion] In trade and investment over four years, “she said.
“The same goes for water, which plans to invest $ 1.4 billion in the United States in the next decade, emphasizing infrastructure and semiconductors of artificial intelligence,” added Tasinato.
Several American agreements on the sale of aircraft and missiles in CCG countries have also been announced.
“The Saudi investment forum [taking place in Riyadh during Trump’s visit] Must be considered in this context, because Riyadh seeks to extend his technological sector through opportunities in data centers, cloud computing and artificial intelligence, among others, “said Tasinato.
What could be the “very big announcement”?
Analysts believe that Trump's mysterious “big announcement” could have something to do with Hamas hostages still organized in Gaza, a potential nuclear agreement from Iran or the Houthie militia supported by Iran in Yemen.
“For Trump, it would be a major moral and diplomatic victory if a hostage release agreement could be agreed with Hamas before or during his visit,” said Ozcelik de Rusi.
Tasinato, however, thinks that it is more likely that the announcement refers to the American-Iranian nuclear agreement or the Yemen Houthis, who simply accepted a cease-fire in Oman.
Several sources have said that Iran had a support role in cease-fire negotiations with the Houthis. This could be an indication that Iran shows the desire to sign a nuclear agreement with the United States, which would probably lead to a certain relief of economic sanctions against Iran and avoid the possibility of an Israeli military strike on the country.
“There is an increasing alignment between Saudi Arabia and the United States concerning the inclusion of the Yemeni file in nuclear talks between Tehran and Washington, as part of a broader de-escalation process in the region,” said Tasinato.
Anyway, he is sure to say that Trump's surprise announcement will also serve American commercial interests.
“President Trump recognizes commercial and investment opportunities in the Gulf and wants to be able to” exploit “the Middle East while the United States pivots China, which is a long-standing posture,” said Burcu Ozcelik.
“Stronger links with Saudi Arabia, Qatar and Water, states that are not aligned with each other on all fronts but which collectively aspire to be heavy goods vehicles in the region, mean that the United States can entrust regional actors to secure the region,” she added.
Published by Ben Knight
