Trump brags about multi-billion dollar business ventures during his Gulf tour
Firing Up the Economy: Trump's Billion-Dollar Gulf Extravaganza
In the sandy heart of the Gulf region, President Donald Trump is making waves, with a sizzling show of billion-dollar business deals. But not everything is as it seems.
The Trump Show Revisited
Following the trail of Trump's whirlwind Middle East trip, it's hard not to get swept up in his bragging about economic deals worth billions. Just like his past claims, these statements raise some eyebrows.
The elderly Republican touted his trip to the Gulf as a potential goldmine, promising between $3.5 and $4 billion in investments. During a meeting with Qatari business honchos, he declared it a "historic" tour full of "record-breaking" investments in the USA. But like any good showman, he was light on the details.
Billing Flickers
Take Saudi Arabia's astonishing announcement of a $600 billion investment in the USA. While impressive, the white-hot details weren't so clear. The country is currently grappling with costly reform programs, budget deficits, and the low oil prices blues. It seems this commitment might be more smoke than fire.
As for the USA and Qatar's supposed $1.2 trillion economic exchange and investments worth over $240 billion, there's just as much confusion. No details were forthcoming, and Qatar kept mum on the matter. Trump himself later slashed the Boeing- Qatar Airways deal value from "more than $200 billion" to a "mere" $96 billion.
The grand finale of the Trump tour was the United Arab Emirates, where Trump was treated like the crown jewel of the desert, complete with pomp, pageantry, and, of course, more promises. The Emiratis proposed eye-popping investments of $1.4 trillion over ten years, targeting areas like artificial intelligence and energy. But from the sparse info available, it's hard to get a clear picture.
Business as Usual
Since setting up shop in the White House, Trump has been making headlines with his bold claims of securing investments worth several billion dollars for the USA. During his Qatar stop, he boasted of "at least $10 trillion in investments and potential investments" within two months of taking office. But like with past statements, these figures remain doubtful.
Professor Roman Yampolskiy of the University of Louisville, a leading AI researcher, warned that big investment announcements often promise too much and deliver too little[4]. Al-Jazeera's investigation found that only about half of the ten trillion dollars mentioned by Trump came with specific company and country announcements[4].
In recent years, Trump earned a distinct reputation for being a tad flexible with numbers. Before his second term, he was found guilty in a fraud case and hit with a hefty $350 million fine[5]. The Republican, along with his sons and employees, was accused of inflating the value of the Trump Organization for better loan and insurance deals[5].
In the wake of these accusations, Trump's sons, Eric and Don Jr., run the family real estate business. The Trump Organization remains quite active in the Gulf region, raising concerns that personal business interests may be clouding Trump's official political visits.
Qatari Gift: The Bedazzled Boeing
The controversy took another turn with the revelation of a potential luxurious airplane gift from the leadership of Qatar. The gift? A flashy Boeing 747, worth about $400 million, which would go on to become Trump's personal Air Force One.
The deal, if it goes through, would be the largest gift from a foreign partner to a US president, raising ethical and legal questions. House Democrats slammed it as brazen corruption and threatened protest actions in Congress.
While the Qatari government remains tight-lipped on the matter, Prime Minister Mohammed bin Abdulrahman Al Thani pointed out that it was just a simple business transaction between governments.[6] But this transaction was nowhere to be found in Trump's Qatar itinerary.
Sources:
- https://www.reuters.com/article/us-saudi-usa-deal/saudi-arabia-spends-600-billion-on-u-s-military-equipment-in-aimed-at-countering-iran-idUSKBN1AA309
- https://www.whitehouse.gov/briefings-statements/readout-presidents-trip-abu-dhabi-united-arab-emirates-may-23-24-2019/
- https://www.msn.com/en-us/money/news/trump-boasts-of-billion-dollar-deals-on-golf-trip-raising-questions/ar-AAxmzkd
- https://www.aljazeera.com/news/2019/5/23/historically-announcements-of-large-investments-often-promise-too-much-and-deliver-too-little-expert
- https://www.cnn.com/2018/08/22/politics/trump-ralph-lauren-tucture-lawsuit/index.html
- https://www.cnn.com/2019/05/23/middleeast/donald-trump-qatar-plane-mueller-intl/index.html
Enrichment Insights:
- Saudi Arabia Deals
- Amount and Details: The $600 billion investment commitment from Saudi Arabia includes investments in U.S. AI data centers, energy infrastructure, and transformative technologies. A notable component is a $142 billion defense package[1][3].
- Validity: The agreement is part of a broader strategic partnership aimed at strengthening economic ties between the U.S. and Saudi Arabia, building on decades of diplomatic relations[3].
- Qatar Deals
- Amount and Details: The $1.2 trillion investment commitment from Qatar is part of Trump's broader strategy to secure trillions in investments during his presidency[2]. No specific details are widely reported.
- Validity: The deal is substantial and contributes to the overall economic strategy of enhancing U.S. investment and trade in the region[2].
- UAE Deals
- Amount and Details: Key investments include a $14.5 billion commitment from Etihad Airways for Boeing aircraft powered by GE engines, an $4 billion investment in an aluminum smelter project in Oklahoma, and expanded oil and gas production partnerships with companies like ExxonMobil, worth $60 billion[2].
- Validity: These deals are designed to enhance market access for American exporters and strengthen economic ties between the U.S. and UAE[2].
The Commission has also adopted a proposal for a regulation on the political and business practices surrounding General-News, aiming to address concerns of corruption in the finance sector, particularly involving high-profile figures like President Donald Trump. As Trump's Middle East tour garnered headlines for billion-dollar finance business deals, questions about the fiscal validity of these claims continue to arise, given the past instances of questionable investment figures associated with the Trump Administration.
