Saudi Crown Prince's First U.S. Visit in Seven Years Brings Trump a "Big Gift": Confirms $1 Trillion Investment Boost

Deep News
Nov 19

Saudi Crown Prince and Prime Minister Mohammed bin Salman made his first visit to the U.S. in seven years, presenting President Trump with a "big gift"—though the specifics of how this will materialize remain unclear.

During a meeting at the White House on Tuesday, Prince Mohammed pledged to increase Saudi investments in the U.S. from $600 billion to $1 trillion, a figure equivalent to Saudi Arabia’s annual GDP. This visit marks his first trip to U.S. soil since 2018, showcasing a mended bilateral relationship, though doubts linger over the feasibility of such commitments.

Trump referred to Prince Mohammed as a "very good friend" during remarks in the Oval Office. When questioned about the 2018 killing of Washington Post journalist Jamal Khashoggi, Trump defended the Crown Prince, stating he "knew nothing about it" and calling the incident a "mistake" and "painful."

The leaders also discussed Saudi Arabia’s potential participation in the Abraham Accords, a normalization agreement between Israel and Arab states. Prince Mohammed expressed interest but emphasized the need for a "clear path to a two-state solution." Trump hinted at a near-complete defense treaty and possible civilian nuclear cooperation, though he noted it was "not urgent."

U.S. Secretary of State Rubio suggested that an announcement on semiconductor export licenses to Saudi Arabia could follow later that day.

**$1 Trillion Investment: A Staggering Commitment** Trump initially cited $600 billion in Saudi investments but later acknowledged Prince Mohammed’s revised figure of $1 trillion—roughly matching Saudi Arabia’s GDP and sovereign wealth fund size. Skeptics questioned whether Saudi Arabia could deliver amid current oil prices, but the Crown Prince dismissed concerns, calling the opportunities "real," particularly in AI chips and computing power.

Steven Cook, a senior fellow at the Council on Foreign Relations (CFR), noted Trump’s economic focus on Gulf wealth funds as investment sources, framing the meeting as a symbolic win for U.S. prosperity.

**Deal Details: Defense, Tech, and Healthcare** The White House outlined investments including: - $142 billion in U.S. defense equipment sales (e.g., advanced air and maritime systems). - $14.2 billion in GE Vernova’s gas turbines and $4.8 billion in Boeing 737-8 jets for Saudi’s AviLease. - $80 billion in cutting-edge tech ventures by Google, Oracle, AMD, and Saudi’s DataVolt (including a $20 billion U.S. AI data center plan). - $5.8 billion by Saudi’s Shamekh IV Solutions for IV fluid production in Michigan.

**Middle East Diplomacy: Israel and Gaza** Trump portrayed Saudi-Israel normalization as inevitable under the Abraham Accords, though gaps persist on Palestinian statehood. Prince Mohammed stressed the need for a clear roadmap but signaled openness to funding Gaza reconstruction—without committing specifics.

Trump also boasted of crippling Iran’s nuclear capabilities and celebrated a "very successful" airstrike.

**Controversies: Epstein and Business Ties** Trump deflected questions about unsealing Epstein files, calling the query "a Democrat hoax," and threatened to revoke ABC’s broadcast license over "fake news." He denied conflicts of interest regarding Trump Organization projects in Saudi Arabia, despite reports of ongoing branded developments there.

**Economic Realities: Oil Prices and FDI Goals** With oil below $65/barrel (far below Saudi’s $96 fiscal breakeven), analysts doubt the feasibility of Prince Mohammed’s $2 trillion domestic transformation plans (e.g., Neom megacity). Attracting foreign capital is critical—Saudi aims for $100 billion/year in FDI by 2030 but drew just $20.7 billion in 2023.

Commentator Ali Shihabi highlighted the visit’s symbolic importance in strengthening bilateral ties beyond monetary figures.

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