DUBAI: Forward of US President Donald Trump’s Gulf visit next week, his son Eric was selling his crypto agency in Dubai, whereas Don Jr ready to speak about “Monetising MAGA” in Doha.
Final month, the Trump Group struck its first luxurious actual property deal in Qatar, and launched particulars of a billion-dollar skyscraper in Dubai whose flats will be purchased in cryptocurrency.
In a monarchical area awash with petrodollars, the checklist of Trump-related ventures is lengthy and rising. Nonetheless, the presidential entourage is just not the one celebration cashing in, analysts say.
“Gulf governments seemingly see the presence of the Trump model of their nations as a approach to generate goodwill with the brand new administration,” stated Robert Mogielnicki of the Arab Gulf States Institute in Washington.
If the president selected, he might hopscotch the area from one Trump enterprise to a different when he visits Saudi Arabia, Qatar and the United Arab Emirates subsequent week on the primary overseas tour of his second time period.
Requested whether or not Trump would make visits or conferences linked to his personal enterprise pursuits or that of his household, White Home Press Secretary Karoline Leavitt stated it was “ridiculous” to “even counsel that President Trump is doing something for his personal profit” and that he had “misplaced cash for being president”.
However from Dubai’s Trump Worldwide golf course, to a high-rise residence block in Jeddah and a US$4-billion golf and actual property challenge on Omani state-owned land, enterprise hyperlinks aren’t onerous to seek out within the desert autocracies.
On the Dubai crypto convention in April, Eric Trump and Zach Witkoff – the son of Trump’s Center East envoy, Steve – introduced that Emirati fund MGX would use USD1, a cryptocurrency developed by their agency, to speculate US$2 billion in Binance, a crypto change.
POLITICAL INFLUENCE
The unique title of Donald Trump Junior’s discuss at this month’s Qatar Financial Discussion board, Monetising MAGA: Investing in Trump’s America was later modified to the extra impartial Investing in America, cached variations present.
Amongst such investments is the US$2 billion that Saudi Arabia’s sovereign wealth fund reportedly ploughed into the non-public fairness fund of Jared Kushner, Trump’s son-in-law and former advisor.
The Qatar Funding Authority and Abu Dhabi-based asset supervisor Lunate have additionally invested US$1.5 billion into the fund, based on Bloomberg.
The Trump Group has been run by the president’s two eldest sons, Don Jr and Eric, since his 2016 election win. Whereas he not holds an govt title, Trump has retained his stake within the household enterprise through a belief.
For the Gulf states, which are attempting to diversify their fossil fuel-reliant economies by attracting tourism and funding, Trump-branded, luxury-focused developments are a superb match.
Nonetheless, that isn’t the one profit, as they spy a straightforward path to entry and affect on the coronary heart of the world’s strongest nation, consultants say.
Based on Hasan Alhasan, a senior fellow for Center East Coverage on the IISS assume tank, signing offers with Trump beats the well-worn strategy of shopping for US weaponry.
“For many years, the Gulf states’ colossal weapons purchases have lined the pockets of US defence firms whose PACs (political motion committees) are among the many largest donors to US election campaigns,” he stated.
“Catering to the Trump household’s industrial pursuits is probably seen as a shorter and simpler route towards the identical goal – political affect,” he stated.
“MORE THAN COMMERCIAL PLAYS”
“In return, the Gulf states need US arms, assurances and superior expertise,” notably synthetic intelligence, Alhasan stated.
One main curiosity for the UAE, which goals to be a pacesetter in synthetic intelligence, is securing entry to superior US applied sciences together with AI chips beneath restricted export.
The USD1 transaction by state-owned AI fund MGX, chaired by the president’s brother Sheikh Tahnoon bin Zayed, got here after he visited Washington in March and reportedly lobbied for entry to the chips.
Gulf dealings with the Trump Group pale compared with authorities pledges, together with the Saudi promise of $600 billion for US commerce and investments.
The White Home has stated the UAE has dedicated to a 10-year, US$1.4 trillion greenback funding framework, a determine not confirmed or denied by Abu Dhabi.
Riyadh was Trump’s first official go to in his inaugural time period. Forward of this journey, america permitted a US$3.5 billion sale of missiles to Saudi Arabia.
“From the Gulf aspect, these investments are excess of simply industrial performs – they’re strategic transactional levers,” stated Center East analyst Andreas Krieg.
