Arab Nations Eye Major U.S. Investment Despite Gaza Conflict

Ahead of his first foreign diplomatic tour of his second presidency, set to begin Tuesday, U.S. President Donald Trump is already extending symbolic gestures to his hosts — Saudi Arabia, Qatar, and the UAE — by pledging to use the term "Arabian Gulf" instead of "Persian Gulf," aligning with long-standing Arab preferences and subtly challenging Iran’s historic claim. While the move holds no legal weight, U.S. officials emphasize its political significance. Trump also hinted at a major

upcoming announcement during the trip, calling it “one of the most important in years,” without revealing details. Analysts suggest each Gulf country has its own priorities for the visit. Saudi Arabia, in particular, is pushing to secure U.S. investment for its Vision 2030 agenda while steering clear of Israeli issues. Despite previous momentum toward a U.S.-brokered Saudi-Israel normalization deal, the Gaza conflict has put such efforts on hold. Saudi leaders insist that any talks with Israel require a credible pathway to Palestinian statehood — a condition unlikely to be met soon.

As a result, Riyadh is now prioritizing business deals and seeking U.S. cooperation on a civil nuclear program and defense arrangements independently of any ties to Israel. Trump’s delegation includes major U.S. defense executives, and Gulf states have already pledged substantial investment commitments: Saudi Arabia has offered $600 billion in trade and investment over four years, while the UAE plans to invest $1.4 trillion in the U.S. over the next decade, focusing on AI and semiconductors. The Saudi-U.S. Investment Forum, set to be held in Riyadh during the visit, is expected to spotlight deals in defense, cloud computing, and advanced technologies, even as the Gaza war remains on the diplomatic sidelines.