London
22 °C
Manchester
Glasgow
20 °C
Dublin
Belfast
Washington
19 °C
Denver
Atlanta
24 °C
Dallas
Houston Texas
New Orleans
El Paso
Phoenix
Los Angeles
17 °C
13 °C
25 °C
16 °C
23 °C
NYSE - LSE
| RBGPF | 1.27% | 63.81 | $ | |
| GSK | -2.59% | 36.425 | $ | |
| RYCEF | 2.08% | 10.6 | $ | |
| CMSC | -0.05% | 22.07 | $ | |
| SCS | -0.65% | 10.75 | $ | |
| BTI | -0.65% | 40.715 | $ | |
| AZN | -1.91% | 67.66 | $ | |
| RIO | 1.44% | 62.305 | $ | |
| RELX | 1.03% | 52.37 | $ | |
| NGG | 0.13% | 67.62 | $ | |
| CMSD | 0.09% | 22.32 | $ | |
| BCC | 0.96% | 94.004 | $ | |
| VOD | -0.04% | 9.066 | $ | |
| BCE | -2.38% | 22.035 | $ | |
| JRI | -1.32% | 12.84 | $ | |
| BP | 1.6% | 30.68 | $ |
Saudis invest big in US weapons, AI as Trump basks in welcome
Saudi Arabia on Tuesday promised billions of dollars in deals with the United States from defence to artificial intelligence as it threw a lavish welcome for President Donald Trump on the first state visit of his second term.
The Saudis escorted Air Force One into the kingdom with fighter jets before bringing out long-stretching guards of honour and sending flag-waving cavalry to accompany Trump's motorcade to the palace.
Under imposing chandeliers, Trump welcomed a promise by Saudi Arabia's de facto ruler, Crown Prince Mohammed bin Salman, for $600 billion in investment and quipped that it should be $1 trillion.
"We have the biggest business leaders in the world here today and they're going to walk away with a lot of cheques," Trump told the prince.
For "the United States, it's probably two million jobs that we're talking about," Trump said.
The White House said that Saudi Arabia would buy nearly $142 billion in weapons in what it described as the largest-ever weapons deal, although Trump in his first term trumpeted a larger, longer-term figure.
The White House said that Saudi company DataVolt will invest $20 billion in artificial intelligence-related sites in the United States, while tech firms including Google will invest in both countries -- welcome news for Saudi Arabia which has long faced restrictions in US advanced technology.
With cameras rolling, a lengthy procession of Saudi royalty and business figures waited their turn to shake hands with Trump and the crown prince, including Elon Musk, the world's richest person and close advisor to Trump, who made a rare appearance in a suit.
The US leader will head later in the week to Qatar and the United Arab Emirates, fellow oil-rich Arab monarchies with long-standing ties to the United States -- and to Trump.
In choosing the Gulf for his first major tour, the 78-year-old billionaire is again bypassing traditional presidential stops among Western allies, some of which have been unnerved by his norms-shattering diplomacy.
Eight years ago, Trump also chose Saudi Arabia for his first overseas trip -- when he posed with a glowing orb and participated in a sword dance.
- Saudis seek image change -
Trump's embrace of the Saudis contrasts with a more hesitant initial approach by former president Joe Biden, who had vowed to punish the crown prince after US intelligence found that he ordered the murder of dissident Saudi journalist Jamal Khashoggi in 2018.
Trump reminisced with the 39-year-old crown prince over their first meeting, saying he was "so impressed with this young guy who was very wise beyond his years".
Since Khashoggi's gruesome killing, Saudi Arabia has worked aggressively to change its image, from easing restrictions on women to diversifying from oil to new areas such as artificial intelligence.
The country has also increasingly exercised diplomatic clout, serving as a venue for the United States to pursue talks with Ukraine and Russia.
Qatar and the United Arab Emirates have also sought outsized international roles, with the Qataris serving as a mediator along with the United States and Egypt in the Israel-Hamas conflict.
Jon Alterman, senior vice president at the Center for Strategic and International Studies, said that for Trump, the Gulf "is his happy place".
The leaders will "flatter him and not criticise him. And they'll treat his family members as past and future business partners," he said.
- Lavish plane -
Qatar has offered a luxury Boeing aircraft for Trump to refurbish as Air Force One and then keep after he leaves the White House.
Trump's Democratic rivals have called the gift blatant corruption. Trump has hit back that the deal was "very public and transparent".
An ultimate prize, pushed both by Trump and Biden, has been to persuade Saudi Arabia, home of Islam's holiest sites, to take the landmark step of recognising Israel.
But Israel normalisation appears remote as Riyadh insists that a Palestinian state be established first.
Israel has cut off all food and other supplies to Gaza for more than two months as it pursues a new offensive against Hamas militants.
The United States, which has quietly been frustrated with its ally, negotiated directly with Hamas to secure the release of a hostage with US citizenship, Edan Alexander, to whom Trump spoke by telephone Tuesday.
Tensions over Iran will likely feature prominently in the talks in the Gulf, after four rounds of nuclear talks between the Trump administration and Tehran.
J.Lim--SG
