Dubai (AFP) – Ahead of US President Donald Trump’s Gulf visit next week, his son Eric was promoting his crypto firm in Dubai, while Don Jr prepared to talk about “Monetising MAGA” in Doha. Last month, the Trump Organization struck its first luxury real estate deal in Qatar and released details of a billion-dollar skyscraper in Dubai whose apartments can be bought in cryptocurrency. In a monarchical region awash with petrodollars, the list of Trump-related ventures is long and growing. However, the presidential entourage is not the only party cashing in, analysts say.
“Gulf governments likely see the presence of the Trump brand in their countries as a way to generate goodwill with the new administration,” said Robert Mogielnicki of the Arab Gulf States Institute in Washington. If the president chose, he could hopscotch the region from one Trump venture to another when he visits Saudi Arabia, Qatar, and the United Arab Emirates next week on the first foreign tour of his second term.
Asked whether Trump would make visits or meetings linked to his own business interests or that of his family, White House Press Secretary Karoline Leavitt said it was “ridiculous” to “even suggest that President Trump is doing anything for his own benefit” and that he had “lost money for being president”. But from Dubai’s Trump International golf course to a high-rise apartment block in Jeddah and a $4-billion golf and real estate project on Omani state-owned land, business links are not hard to find in the desert autocracies.
At the Dubai crypto conference in April, Eric Trump and Zach Witkoff — the son of Trump’s Middle East envoy, Steve — announced that Emirati fund MGX would use USD1, a cryptocurrency developed by their firm, to invest $2 billion in Binance, a crypto exchange.
– Political influence –
The original title of Donald Trump Junior’s talk at this month’s Qatar Economic Forum, “Monetising MAGA: investing in Trump’s America,” was later changed to the more neutral “Investing in America,” cached versions show. Among such investments is the $2 billion that Saudi Arabia’s sovereign wealth fund reportedly ploughed into the private equity fund of Jared Kushner, Trump’s son-in-law and former advisor. The Qatar Investment Authority and Abu Dhabi-based asset manager Lunate have also invested $1.5 billion into the fund, according to Bloomberg. The Trump Organization has been run by the president’s two eldest sons, Don Jr and Eric, since his 2016 election win. While he no longer holds an executive title, Trump has retained his stake in the family business via a trust.
For the Gulf states, which are trying to diversify their fossil fuel-reliant economies by attracting tourism and investment, Trump-branded, luxury-focused developments are a good fit. However, that is not the only benefit, as they spy an easy route to access and influence at the heart of the world’s most powerful country, experts say. According to Hasan Alhasan, a senior fellow for Middle East Policy at the IISS think tank, signing deals with Trump beats the well-worn approach of buying US weaponry. “For decades, the Gulf states’ colossal weapons purchases have lined the pockets of US defence companies whose PACs (political action committees) are among the largest donors to US election campaigns,” he said. “Catering to the Trump family’s commercial interests is perhaps seen as a shorter and more effective route toward the same objective: political influence,” he said.
– ‘More than commercial plays’ –
“In return, the Gulf states want US arms, assurances, and advanced technology,” notably artificial intelligence, Alhasan said. One major interest for the UAE, which aims to be a leader in artificial intelligence, is securing access to advanced US technologies including AI chips under restricted export. The USD1 transaction by state-owned AI fund MGX, chaired by the president’s brother Sheikh Tahnoon bin Zayed, came after he visited Washington in March and reportedly lobbied for access to the chips.
Gulf dealings with the Trump Organization pale in comparison with government pledges, including the Saudi promise of $600 billion for US trade and investments. The White House has said the UAE has committed to a 10-year, $1.4-trillion dollar investment framework, a figure not confirmed or denied by Abu Dhabi. Riyadh was Trump’s first official visit in his inaugural term. Ahead of this trip, the United States approved a $3.5-billion sale of missiles to Saudi Arabia. “From the Gulf side, these investments are far more than just commercial plays – they are strategic transactional levers,” said Middle East analyst Andreas Krieg.
© 2024 AFP
