Following Trump’s inauguration, Prince Mohammed, the de facto leader of Saudi Arabia, pledged to enhance trade and investment with the United States by $600 billion over the next four years. This commitment was made during a phone call reported by Saudi state media. The Saudi Press Agency noted that the crown prince aims to expand ties with the U.S. significantly, although details on the funding sources or intended uses for the capital were not provided.
Trump’s administration is expected to encourage Saudi Arabia, which hosts Islam’s holiest sites, to normalize relations with Israel as a key foreign policy goal. During a phone call marking Trump’s first conversation with a foreign leader since returning to office, Prince Mohammed, 39, conveyed congratulations from his father, King Salman. The White House reported that Trump and the crown prince discussed promoting stability in the Middle East, enhancing regional security, and fighting terrorism.
They also reviewed Saudi Arabia’s economic ambitions and potential trade opportunities aimed at boosting mutual prosperity. Trump recalled that his initial presidential trip in 2017 was to Saudi Arabia, and humorously suggested that a significant financial commitment could prompt another visit, referencing the previous $450 billion deal.Trump joked that he would return to Saudi Arabia for another visit if the country were to commit to buying an additional $450-500 billion in US products, with a tongue-in-cheek offer to “up it for all the inflation”.
During his first term, the UAE, Bahrain, and Morocco established diplomatic ties with Israel under the Abraham Accords, a move that Saudi Arabia has not yet followed. The Trump administration is expected to pursue a similar normalization process with Saudi Arabia, following efforts by the Biden administration. However, Saudi Arabia has been cautious, citing its insistence on a Palestinian state as a condition for recognizing Israel and previously pausing talks with US officials during the Gaza conflict.
A potential ceasefire in Gaza and reduced regional tensions may lead to renewed dialogue between Saudi Arabia and Israel. The wealthiest Arab nation seeks a US defense pact and assistance with a civil nuclear program in exchange for recognizing Israel. In a recent call with Crown Prince Mohammed, new US Secretary of State Marco Rubio addressed topics including Syria, Lebanon, Gaza, and Iran’s threats, as well as the economic partnership between the US and Saudi Arabia, highlighting opportunities for growth in various sectors like AI. During his first term, Trump prioritized Saudi Arabia, enjoying a grand reception during his 2017 visit, which included a sword dance and air force flyover.
Relations between Trump and Saudi Crown Prince Mohammed bin Salman deteriorated after a 2019 attack, attributed to Iran, which severely impacted the kingdom’s oil production. Despite this, Riyadh and Trump’s team aimed to strengthen ties after his presidency, focusing on investments and construction projects related to the Trump Organization. Jared Kushner, Trump’s son-in-law, has justified accepting a $2 billion investment from Saudi Arabia into his private equity firm.