Saudi Crown Prince visits the U.S. for the first time in seven years, presents "big gift" to Trump, confirming an increase in investment in the U.S. to $1 trillion

Saudi Crown Prince and Prime Minister Mohammed bin Salman made his first visit to the United States in seven years, presenting a "great gift" to U.S. President Donald Trump, although it remains unclear how this gift will actually be realized in the U.S.

On Tuesday, the 18th, Eastern Time, Mohammed met with Trump at the White House, promising that Saudi investments in the U.S. would increase from $600 billion to $1 trillion, a figure equivalent to Saudi Arabia's annual GDP. This visit marks Mohammed's first trip to U.S. soil since 2018, and the two leaders used this opportunity to showcase the restoration of bilateral relations, although the actual feasibility of the investment commitment remains in doubt.

Trump stated in the Oval Office that Mohammed is a "very good friend." When asked about the murder of Washington Post journalist Jamal Khashoggi in 2018, Trump defended Mohammed, saying the Crown Prince "knew nothing about it," and added, "Many people didn't like that man, whether you like him or not, it happened." Mohammed described the incident as a "huge mistake" and "painful."

Trump and Mohammed also discussed the prospects of Saudi Arabia joining the Abraham Accords, which normalize relations between Israel and Arab countries. Mohammed expressed that Saudi Arabia hopes to join the Abraham Accords and establish relations with Israel, but must ensure a "clear path to a two-state solution." Trump stated that the two sides have "almost" reached a defense treaty and mentioned that they might reach an agreement on civilian nuclear technology, "but it's not urgent."

During the meeting on Tuesday, U.S. Secretary of State Rubio indicated that the U.S. might announce news regarding chip export licenses to Saudi Arabia later that day.

$1 trillion equivalent to Saudi Arabia's annual GDP

Trump stated during his opening remarks at the White House on Tuesday that Saudi Arabia would invest $600 billion in the U.S., adding that this figure "might go a little higher." When it was Mohammed's turn to speak, the Crown Prince mentioned that he could increase the investment amount from $600 billion to $1 trillion. Trump asked him to confirm this investment amount, to which Mohammed replied, "Of course." Trump responded, "That's great, thank you very much."

Media pointed out that the $1 trillion investment commitment announced by the two leaders is significantly at odds with the actual situation. The display board at the leaders' meeting showed a cumulative transaction value of over $300 billion, while the White House had cited the $600 billion investment figure just hours earlier.

The $1 trillion is roughly equivalent to Saudi Arabia's entire annual GDP and is also about the total size of Saudi Arabia's sovereign wealth fund.

When asked by reporters whether Saudi Arabia could fulfill the $1 trillion investment commitment at current oil price levels, Mohammed responded that Saudi Arabia "is not creating false opportunities to please the U.S. or Trump," and that these are "real opportunities." He cited artificial intelligence (AI) chips as an example, stating that Saudi Arabia has a huge demand for computing power, and agreements with the U.S. will meet Saudi Arabia's actual needs.

Steven Cook, a senior fellow for Middle East and Africa studies at the Council on Foreign Relations (CFR), commented that Trump's foreign policy is deeply influenced by "his economic governance strategy, viewing the wealthy countries of the Gulf region and their vast sovereign wealth funds as sources of investment for the U.S." For Trump, this meeting has at least symbolically achieved victory, demonstrating that he is leading the United States into a new era of prosperity.

White House Discloses Investment Project Details

According to a White House statement, the investment agreement includes nearly $142 billion in U.S. defense equipment sales, providing Saudi Arabia with "state-of-the-art combat equipment and services from dozens of American defense companies." The sales package covers various defense technologies, from air force capabilities to maritime security, as well as information and communication services.

The White House also emphasized that Saudi companies will purchase equipment made in the United States. This includes natural gas turbines and other equipment exported by GE Vernova, a subsidiary of General Electric, with a total value of $14.2 billion. Additionally, Boeing will export $4.8 billion worth of 737-8 passenger aircraft to Saudi's AviLease.

Google, Oracle, Salesforce, AMD, Uber, and Saudi's DataVolt will invest $80 billion in "cutting-edge transformative technologies" between the two countries. According to the statement, DataVolt is "advancing plans" to invest $20 billion in AI data centers and energy infrastructure in the United States.

The White House statement indicates that at least one plan involves the healthcare sector, specifically Saudi's Shamekh IV Solutions, which plans to invest $5.8 billion, including the construction of a factory in Michigan to produce intravenous solutions. The company is committed to addressing the global shortage of intravenous solutions, which are used to deliver medications and nutrients into patients' bloodstream.

Middle East Diplomacy and Progress in Relations with Israel

In his speech, Trump described Saudi Arabia's inclusion in the "Abraham Accords" as a fait accompli. He stated, "This is what I want, and this is what you want, and that's how things will develop." The Abraham Accords are a series of normalization agreements between Arab countries and Israel facilitated during Trump's first term.

However, Trump also acknowledged that there are still profound differences on issues such as the fate of the Palestinian state and Gaza refugees, highlighting that much work remains to be done. Mohammed expressed hope that Israelis and Palestinians could "coexist peacefully" in the region, but such an agreement is unlikely to be reached in the short term, as Saudi Arabia insists on a clear path to establishing a Palestinian state before signing.

Mohammed stated that he is "discussing" providing Saudi funding for reconstruction efforts in Gaza. Trump interjected that "it will be a large sum," but Mohammed did not confirm this. Mohammed is not eager to engage in reconstruction or peacekeeping in Gaza, as his financial capital is limited and he is primarily focused on domestic economic priorities.

Trump also stated that the U.S. has "successfully" destroyed Iran's nuclear capabilities, claiming, "No one else could do that." He mentioned inviting pilots involved in the airstrikes against Iran to the Oval Office to celebrate "a very successful attack."

Trump Responds to Sensitive Issues: Epstein Case and Family Business

When asked by an ABC reporter why, since he supports the release of Epstein's files, he does not directly order the government to do so but waits for Congress to release them, Trump called the questioner a "bad reporter," a "bad person," and said it was a "bad question." Trump said, "I have no relationship with Jeffrey Epstein. I kicked him out of my club many years ago because I thought he was a disgusting pervert. It turns out my judgment was right." He stated that discussing the Epstein files is a "Democratic hoax."

Trump also threatened to have the Federal Communications Commission (FCC) revoke ABC's television license, saying, "I think ABC's license should be taken away because your news is too fake and too outrageous. Our FCC chairman is great, and he should look into this matter."

Regarding the potential conflict of interest posed by his family's business interests in Saudi Arabia, Trump responded that he has "nothing to do" with the family business, stating that his family does business "all over the world" and actually does "very little" in Saudi Arabia. He said his focus is on the United States.

Reports indicate that since Trump was elected last year, the Trump Organization's business partner Dar Global, which has close ties to the Saudi government, has announced at least four Trump-branded development projects in Saudi Arabia. The Trump Organization is also in negotiations to potentially introduce the Trump brand to one of Saudi Arabia's largest government-owned real estate development projects, which is overseen by Mohammed himself.

Saudi Arabia Faces Financial Pressure in Low Oil Price Environment, Needs to Attract Foreign Investment from the U.S. and Others

Some media believe that Mohammed's investment commitments may conflict with his own designed economic transformation plan for Saudi Arabia, which aims to reduce the kingdom's historic dependence on oil. Media estimates suggest that Mohammed's plans, including large infrastructure projects like the future city Neom, could cost nearly $2 trillion.

For Saudi Arabia, which needs capital to attract American and other investors, being generous to Trump is a key opportunity. Saudi Arabia's goal is to attract $100 billion in foreign direct investment annually by 2030, but it only attracted $20.7 billion last year, the lowest level since 2020.

Currently, international crude oil prices below $65 per barrel further increase Saudi Arabia's financial pressure. Bloomberg research estimates that Saudi Arabia needs oil prices to reach at least $96 per barrel to balance its budget. Despite the grand statements made by the leaders of both countries regarding Saudi investments in the U.S., there is a significant gap between the numbers proposed and the reality of possibilities.

As one of the guests invited to welcome Trump at the Al-Yamamah Palace, Saudi commentator Ali Shihabi commented on Tuesday that the key is to view the issue in terms of the value of amounts that go beyond statements. He said that Mohammed's "visit this time highlights the strength of bilateral relations and increases stability by establishing a continuously expanding network of connections in the economic, political, and security fields."