RIYADH, Saudi Arabia — Former U.S. President Donald Trump kicked off a high-profile tour of the Gulf with a series of major announcements on Tuesday, including a historic $600 billion investment pledge from Saudi Arabia and the lifting of long-standing U.S. sanctions on Syria, signaling a major shift in regional diplomacy and economic engagement.
U.S. Lifts Sanctions on Syria After Over a Decade
In a surprise move, Trump declared that the United States would end economic sanctions on Syria, which have been in place in various forms since 2004 and intensified significantly after the outbreak of Syria’s civil war in 2011. The sanctions removal marks a significant policy shift, as Syria, now led by President Ahmed al-Sharaa after the fall of Bashar al-Assad in December, begins a fragile process of national reconstruction.
Trump revealed during an investment forum in Riyadh that the decision to lift sanctions came at the request of Saudi Crown Prince Mohammed bin Salman, describing it as a step to support Syria’s recovery. “Oh, what I do for the crown prince,” Trump joked, drawing applause from the crowd. 
Syrian Foreign Minister Asaad al-Shibani welcomed the move on social media, calling it a “new start” in rebuilding the war-torn country’s economy and infrastructure.
$600 Billion Saudi Investment and $142 Billion Arms Package
The visit also featured a record-breaking U.S.-Saudi defense and economic agreement. According to a White House statement, the U.S. will supply Saudi Arabia with nearly $142 billion in arms, which the administration described as the largest defense cooperation agreement in American history.
The broader $600 billion investment deal covers sectors such as:
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Defense and Security Technologies
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Energy and Clean Tech
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Space and Satellite Systems
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Mining and Rare Earths
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Infrastructure and Smart Cities
Trump and Prince Mohammed also discussed expanding this package further, with the Crown Prince indicating that the total investment could reach $1 trillion as additional deals are signed over the coming months.
While specifics of the arms package remain undisclosed, it reportedly includes major air defense systems and maritime technologies. Talks regarding the inclusion of Lockheed Martin F-35 fighter jets are ongoing, according to defense industry sources.
Rebuilding Relations, Sidestepping Khashoggi Controversy
Trump’s warm engagement with Saudi leadership comes as part of a broader effort to reaffirm ties after past strains, especially the 2018 murder of journalist Jamal Khashoggi. While U.S. intelligence had concluded that Crown Prince Mohammed likely approved the operation, Trump did not address the issue publicly during the visit. Instead, he praised bin Salman as “an incredible man” and emphasized their strong personal rapport.
“I believe we like each other a lot,” Trump said.
Business Giants Join Trump in Riyadh
The Riyadh forum drew several high-profile American business leaders, including:
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Elon Musk, CEO of Tesla and SpaceX
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Sam Altman, CEO of OpenAI
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Larry Fink, CEO of BlackRock
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Stephen Schwarzman, CEO of Blackstone
These executives attended presentations on Saudi Arabia’s Vision 2030, a strategic initiative to diversify its oil-based economy and develop “Giga-projects” such as NEOM, a $500 billion smart city project covering 26,500 square kilometers.
Despite global ambitions, Saudi officials acknowledged economic headwinds. Oil revenue, which accounted for 62% of the kingdom’s income last year, has seen pressure due to declining prices and rising development costs, forcing a recalibration of several projects.
Middle East Tour: Qatar and UAE Up Next
Trump’s Gulf tour continues this week, with stops scheduled in Qatar on Wednesday and the United Arab Emirates on Thursday. The focus remains on investment and economic cooperation, rather than military or security negotiations.
No Visit to Israel, Strong Warning to Iran
Notably, Trump has not included Israel in his travel itinerary, prompting speculation over the current state of U.S.-Israel relations. His administration is reportedly pressuring Israeli Prime Minister Benjamin Netanyahu to accept a ceasefire deal in the ongoing Gaza conflict, now in its 19th month.
During his Riyadh address, Trump encouraged Saudi-Israeli normalization, a goal he advanced during his first term via the Abraham Accords. However, progress is likely hindered by Netanyahu’s opposition to the creation of a Palestinian state, insiders told Reuters.
Trump also issued a stern warning to Iran, calling it the “most destructive force” in the region. While he expressed openness to a new nuclear agreement, he stressed that the U.S. would pursue “maximum pressure” if Tehran continues its current path.
“I want to make a deal with Iran,” Trump said. “But if Iran’s leadership rejects this olive branch… we will have no choice but to inflict massive maximum pressure.”
