Trump boasts $2 trillion in Gulf deals amid skepticism
- Donald Trump announced potential Gulf investments exceeding $2 trillion during his recent Middle East visit.
- Analysts warned that many deals were non-binding and previous commitments had resulted in actual investments far below claimed amounts.
- The emphasis on AI in these discussions reflects a significant shift in US-Gulf relations, moving away from oil to technology.
During President Donald Trump’s recent visit to the Middle East, he announced what he claimed were deals potentially exceeding $2 trillion, encompassing a variety of sectors including artificial intelligence, healthcare, and infrastructure. This visit was characterized by significant agreements intended to strengthen economic ties between the U.S. and Gulf states. Among the notable announcements was a $142 billion defense deal, touted as the largest in history. However, skepticism surrounds the validity and actual value of these agreements, with analysts noting that many were merely non-binding memorandums of understanding and that previous commitments had resulted in much lower actual trade flows. Furthermore, the Trump administration has emphasized the strategic importance of artificial intelligence (AI) in these agreements, signaling a shift in U.S. foreign relations towards technology rather than just oil. This change suggests an evolving geopolitical landscape that prioritizes technological collaboration. In addition, the establishment of AI startup Humain and initiatives for significant data center developments in the UAE highlight U.S. ambitions to maintain global leadership in AI and secure investments from Gulf nations. Nonetheless, concerns about national security persist, especially regarding technology transfer to the Gulf states without adequate safeguards to prevent advanced chips from falling into potential adversaries' hands, notably China. Legislative representatives have raised alarms over these deals, pushing for protections to ensure American technologies are leveraged to bolster domestic industries rather than overseas. As the Gulf states aim to also establish themselves in the global AI arena, the implications of these investments are substantial. With prominent figures in technology calling attention to the ongoing race for AI dominance, the partnerships formed during this trip could alter the landscape of tech development and collaboration on a global scale. Critics suggest that without strict oversight, the yield from these investments could pose risks, particularly if advanced technology is misappropriated or used for military advancements.