Trump in Riyadh Seeks to Offset Tariff-Led Economic Woes

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Business Deals in Spotlight in Trump’s Saudi Arabia Visit Amid Ratings Dip

By TRH News Desk

NEW DELHI, May 13, 2025 – US President Donald Trump’s visit to Saudi Arabia, marking the first stop of his Middle East tour, underscores the kingdom’s pivotal role in his administration’s foreign policy. Facing backlash over retreat against the Yemen-based Houthis, geopolitical experts argue that Trump visit underlines his recognition of the importance of Riyadh for Washington in managing the affairs of the Middle East.

Trump arrived in Riyadh today. He had a brief chat with members of the royal family over coffee at the airport. Trump visit in Riyadh has spotlight on a strong presence of American billionaires, including Elon Musk and Sam Altman.

Trump aims to secure major economic deals during his visit to Saudi Arabia. Experts stated that Trump needs to show his audience in the US that he is winning investments in trillions of dollars after economic upheavals due to his tariff measures and mass firing of federal employees.

Trump in his first term also had begun his overseas trips in 2017 with a visit to Saudi Arabia. The significance of this visit amidst ongoing geopolitical tensions, including the Gaza conflict and Iran’s nuclear ambitions is in the spotlight along with the US retreat against the Houthis.

Trump’s four-day trip includes stops in Qatar and the UAE. Trump was given a ceremonial welcome at the Saudi Royal Court. His beast was accompanied by Arabian horses.

Trump met Crown Prince Mohammed bin Salman (MBS). The Washington Post reported that Trump attended a luncheon with 250 American business leaders and Saudi officials.

His focus on economic partnerships amid Saudi Arabia’s pledge of $600 billion in US investments over the next four years is at the centre stage. Trump is pushing for a $1 trillion target, according to Al Jazeera. But experts argue that Riyadh may need to take loans to pump $1 trillion in investment commitment.

Regional media outlet Arab News noted that Trump’s visit coincides with Saudi Arabia’s efforts to diversify its economy under Vision 2030. MBS seeks to leverage Trump’s transactional approach to secure US support for sectors like AI and nuclear energy.

“The kingdom sees Trump as a partner who prioritizes deals over human rights critiques, a stark contrast to the Biden era,” Arab News reported, referencing Saudi Arabia’s desire for a defence pact and advanced weaponry.

Steven Cook, a senior fellow at the Council on Foreign Relations, commented in a post on X: “The Saudis are going all out to welcome Trump, aiming to lock in economic and security commitments.”

Firas Maksad, managing director at Eurasia Group, posted, “Saudi-Israeli normalization is off the table for now due to Gaza, but Trump’s visit will still yield big economic wins for both sides.”

Al Jazeera reported earlier that Saudi Arabia paused normalization talks post the Gaza war’s escalation in October 2023, prioritizing a Palestinian statehood roadmap. Trump takes credit for bringing Saudi Arabia and Israel closer through the Abraham Accord.

The Saudi Gazette highlighted the kingdom’s diplomatic role, noting that Trump’s visit follows Saudi-hosted US-Russia talks on Ukraine. “MBS is positioning Saudi Arabia as a global mediator, a role Trump values for his own diplomatic ambitions,” the outlet stated. However, experts caution that Trump’s focus on business over diplomacy may sideline pressing issues. Anna Jacobs, a non-resident fellow at the Arab Gulf States Institute, told The Times of Israel “Trump is coming to the Gulf because it’s a geopolitical and financial center of gravity, but his neglect of Gaza could strain relations with Arab leaders.”

Trump’s history with Saudi Arabia, including his defence of MBS after the 2018 Jamal Khashoggi murder, has drawn criticism. The Guardian reported that this visit “completes the undeserved rehabilitation of Salman,” with MBS facing pressure to address Gaza’s humanitarian crisis. Despite these concerns, Trump’s agenda includes a $100 billion arms deal and discussions on nuclear cooperation, reflecting Saudi Arabia’s strategic priorities, per CNBC.