We’re still waiting for details, but if initial bytes shared by the White House¹ are any indication, President Trump’s recent Middle East tour stands out as a strategic reaffirmation of the US ties to the region. For the Saudi and Qatari kingdoms, the deal was extremely strategic as this blends in well with their stated desire to go beyond the oil-centric economies that have characterized the region for over seven decades and thrust them into a technological springboard that they have aspired to for many years. For the US, the visit of the US president was a testament to the administration’s commitment to boosting investment and strengthening the strategic relationship with the two countries.

 

These are big numbers. The US president announced that Saudi Arabia had pledged to invest around US$ 600 billion in American companies². While the actual breakup is still awaited, some components of the deal are already out in the market. The agreement includes $142 billion in defence sales to help supply the country with “state-of-the-art warfighting equipment,” and private investments promised by Saudi firms include a $20 billion commitment from DataVolt to establish “AI data centres and energy infrastructure” in the U.S.³

 

US-Saudi Arabia: Key Focus Sectors

• Technology and InnovationRecognizing the transformative power of technology, Saudi Arabia is increasingly looking to invest in US tech companies and research institutions. This includes areas such as artificial intelligence (AI), cloud computing, cybersecurity, and biotechnology. KSA aims to acquire expertise, foster innovation within its borders, and potentially establish joint ventures that can contribute to its digital transformation agenda. Investments in US-based venture capital funds and startups are also likely to increase, providing them with exposure to cutting-edge technologies and emerging business models. Nvidia and AMD announced that they would be partnering with Humain, an AI startup owned by KSA’s sovereign wealth fund, the PIF, to power AI projects. According to a Bank of America estimate, the deal could be worth between $15 billion to $20 billion in total spending over the length of the agreement. That would equal $3 billion to $5 billion in annual sales from around 500,000 advanced AI chips by 2027.

• Infrastructure DevelopmentAs the US embarks on significant infrastructure upgrades, Saudi Arabia sees opportunities for long-term investments in projects related to transportation (roads, railways, airports), logistics, and urban development. These investments not only offer potential financial returns but also align with the PIF’s strategy of diversifying its assets globally and participating in large-scale, impactful projects. There are also reports of US firms participating in Saudi Infrastructure projects such as King Salman International Airport and the much-publicized Qiddiya City, which are around US$ 2 billion.

• Renewable Energy
  While still a major oil producer, Saudi Arabia is also making significant strides in developing its renewable energy sector. Collaborations and investments in US renewable energy companies, particularly in solar and wind technologies, can provide the Kingdom with valuable expertise and facilitate the transfer of knowledge to support its own clean energy transition.

• Entertainment and Tourism
  As part of Vision 2030, Saudi Arabia is investing heavily in developing its entertainment and tourism industries. Strategic investments in US entertainment companies, theme parks, and hospitality chains can provide valuable insights and potentially lead to partnerships that support the Kingdom’s ambitions.

US-Qatar: Investing in Stability and Future Growth

Qatar has distinct investment priorities within the US, particularly in energy, finance, and defence. Qatar is already a leading LNG exporter, and new deals with the US include:

• Increased LNG Exports to Europe: Qatar Energy is partnering with US firms to supply Europe with LNG amidst the Russia-Ukraine crisis.
• Investments in US Gas Infrastructure:Qatar is funding expansion projects in Texas and Louisiana LNG terminals.
• Defence Agreements
  • Military Base Expansion: Funding for the Al Udeid Air Base, a critical US military hub
  • Cybersecurity Partnerships: Collaborations with US firms to enhance digital defence capabilities.
• Sports and Entertainment: Ownership stakes in the NBA, NFL, Hollywood studios, and digital media platforms via Qatari funds.

Qatar’s sovereign wealth fund (QIA) is expanding its US portfolio through:

• Tech & Fintech Investments: Major stakes in companies like Uber, SpaceX, and Silicon Valley fintech startups.
• Banking & Private Equity:Partnerships with Blackstone and KKR for real estate and infrastructure funds.

Final Thoughts

For the US, these investments mean job creation and technological advancements, while Saudi Arabia and Qatar secure long-term economic growth beyond hydrocarbons. As these partnerships evolve, they will play a crucial role in shaping the future of US-Gulf relations.

The ample dry powder held by sovereign wealth funds in the Middle East provides a high degree of resilience to these funds, allowing them to navigate geopolitical vagaries and volatility. Coupled with the strategic imperatives of economic diversification, it is likely that these investment trends are likely to continue and deepen in the coming years.

1. https://www.whitehouse.gov/fact-sheets/2025/05/fact-sheet-president-donald-j-trump-secures-historic-1-2-trillion-economic-commitment-in-qatar/

2. https://www.msn.com/en-us/money/companies/the-top-tech-stock-winners-from-trump-s-600-billion-saudi-arabian-deal/ar-AA1EZnRf?ocid=finance-verthp-feeds&cvid=eebe98f714c14155b7c7065328cc7468&ei=24

3. https://www.msn.com/en-us/money/markets/trumps-600-billion-saudi-investment-deal-what-we-know-so-far/ar-AA1EMuxP?ocid=BingNewsSerp