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Sunday, 23 November 2025

Trump Summit With #Saudi Leader MBS Made Strategic Sense - Bloomberg

Trump Summit With Saudi Leader MBS Made Strategic Sense - Bloomberg


I first met Crown Prince Mohammed bin Salman of Saudi Arabia in Riyadh in 2018. He took me to several workstations in his cavernous offices, showing off the ambitious projects and technological advancements needed to diversify his economy. My after-visit summary was: “He has lightning in his veins.” ­I meant that in two ways: the positive sense of great energy, and the negative of rash unpredictability.

Given that he is only 40, MBS (as he is known) will likely be the absolute ruler of his land for many decades. There is no underplaying the significance of his arrival in Washington to meet with President Donald Trump this week, especially given the heightened geopolitical stakes in the region and the increasingly shared global interests of the US and Saudi Arabia.

All went more or less as scripted: The crown prince was warmly welcomed at the Oval Office; the kingdom reportedly pledged up to $1 trillion investment in the US; and the Saudis were granted the coveted status of a major non-North Atlantic Treaty Organization ally. A flyover of F-35 Joint Strike Fighters presaged the offer to sell the kingdom that fifth-generation plane. Deals on peaceful nuclear power, artificial intelligence cooperation, critical minerals and other issues were pushed ahead.

The visit displayed a warm personal friendship between the mercurial crown prince and the mercurial president. Any lingering shadow from the killing of the Washington Post columnist Jamal Khashoggi in 2018 — which the CIA found was ordered by MBS — was brushed aside.

Yet beyond the public displays of alignment and affection, what are the geostrategic drivers of the US-Saudi relationship? Where should the Trump administration seek to cash the political capital it created with the lavish visit?

First and foremost, the White House should push the Saudis to fully support Trump’s 20-point Mideast peace plan that includes rebuilding Gaza and putting a pan-Arab peacekeeping force on the ground. This could put paid to the final remnants of Hamas and bring stability and a steady flow of humanitarian goods to the 2.2 million Palestinians in the battered enclave. While Israel would probably hold onto a buffer zone of sorts, an Arab force — perhaps with additional peacekeepers from other Islamic states such as Indonesia and Turkey — is the only way to fully pacify the Gaza Strip.

Ending the war and rebuilding Gaza is the key to normalizing relations between Saudi Arabia and Israel, one of Trump’s dearest diplomatic objectives. While the crown prince continues to say that cannot occur until there is a viable path to a Palestinian state, the Trump administration may be able to finesse that requirement by simply pushing it out years into the future.

A second area of mutual concern is Iran, which has been at the top of the agenda in my meetings with MBS. The best strategy is to continue to box it out of the region, ensuring there is no return of strong Iranian proxies in Syria, Lebanon, Gaza and Iraq. This will require continued military pressure by Washington, working in concert with Israel. It will also need support from the Saudis in intelligence, air defense, surveillance, cyberwarfare, and special forces activities. Military-to-military cooperation between the Israelis and Saudis is shrouded in secrecy, but in the aftermath of the new US-Saudi defense pact, these operations could come out from the shadows.

The third important element of the US-Saudi relationship centers on the sale of the F-35 fighters. This will be controversial in two ways. One is that transferring such advanced technology always risks it falling into the hands of rivals, particularly China. Additionally, Israel is unlikely to be happy that the deal degrades the “qualitative military edge” that, under US law, it has enjoyed over its Arab neighbors for years. So Washington will need to manage that particular program carefully, with strong safeguards for protecting the technology and strong diplomacy to keep Saudi and Israeli security needs in balance.

Finally, there is cooperation on energy. There may be turbulent times ahead in world oil markets, with three major potential geopolitical scenarios: regime change in Venezuela, opening up its known oil reserves of more than 300 billion barrels; Moscow agreeing on a Ukraine peace deal that gets it out of oil and gas sanctions; and perhaps Iran making a deal to drop its pursuit of nuclear weapons and similarly finding sanctions eased. It’s unlikely that all three will happen — the equivalent of three cherries on the slot machine of geopolitics — but even if only one or two occur, markets will roil.

Beyond the glittering setting of the Oval Office and the tech-billionaire turnout at the evening soiree, the crown prince’s visit showed solid geopolitical interest at work. Now it’s time to channel his personal lightning in productive ways — to Gaza, Iran, defense and energy markets.

DHL Bets on #Saudi Expansion With $150 Million Riyadh Hub - Bloomberg

DHL Bets on Saudi Expansion With $150 Million Riyadh Hub - Bloomberg

DHL Supply Chain plans to invest €130 million ($150 million) in a Riyadh logistics hub, betting on Saudi Arabia’s push to become a regional trade gateway.

Construction of the warehouse is expected to begin next year, Orkun Saruhanoglu, chief executive officer of of DHL Supply Chain in the Middle East and Africa, said in an interview. The facility, located in the Special Integrated Logistics Zone next to King Khalid International Airport, will open in 2027, he said.

Saudi Arabia has loosened foreign investment rules to lure multinationals beyond the oil sector as part of Crown Prince Mohammed bin Salman’s Vision 2030. The government is emphasizing on logistics, aiming to position the kingdom as a trade hub linking Asia, Europe, and Africa.

“This is just the first step of our group’s €500 million investment” in the Middle East, Saruhanoglu said in an online interview on Saturday. “Most of our global and regional customers are already in Saudi Arabia.”

The new 78,000-square-meter (840,000 square feet) hub will serve DHL’s customers in technology, e-commerce, automotive, and other fast-growing sectors.

DHL, which already partners with Saudi Aramco through its ASMO joint venture, is considering further expansion in the kingdom but has not disclosed details. Saruhanoglu said Saudi Arabia is now the company’s fastest-growing market in the region. The Riyadh hub is expected to support domestic and regional trade and provide space for manufacturing and distribution activities.

Saruhanoglu said the bonded corridor to King Khalid International Airport could cut clearance times, and some global clients are exploring moving more regional distribution to Saudi Arabia.

Most Gulf markets gain on Fed rate cut bets, oil weighs | Reuters

Most Gulf markets gain on Fed rate cut bets, oil weighs | Reuters


Most stock markets in the Gulf ended higher on Sunday, amid growing optimism for a Federal Reserve interest rate cut in December, although gains were restrained by subdued oil prices.

U.S. monetary policy shifts have a significant impact on Gulf markets, where most currencies are pegged to the dollar, and financial markets are pricing in an increased likelihood of a third and final Fed rate cut this year after Thursday's jobs data.

The delayed U.S. employment report showed a mixed labor market picture, with non-farm payrolls rising by 119,000 in October, well above forecasts for a 50,000 gain, while the unemployment rate climbed to a four-year high.

In Qatar, the index (.QSI), opens new tab rose 0.4%, led by a 3.6% jump in telecoms firm Ooredoo (ORDS.QA), opens new tab.

Last week, Ooredoo finalized its fully marketed secondary global offering of shares previously owned by the Abu Dhabi Investment Authority.

Saudi Arabia's benchmark index (.TASI), opens new tab finished flat, with Saudi Arabian Mining Company (Maaden) (1211.SE), opens new tab advancing 3.3%.

Rare earth miner MP Materials (MP.N), opens new tab said on Wednesday it would build a refinery in Saudi Arabia for the minerals, with the U.S. Department of Defense and state-owned Maaden, to expand Middle Eastern processing of the critical minerals.

On the other hand, oil giant Saudi Aramco (2222.SE), opens new tab lost 0.7%.

Oil prices extended their decline for a third session on Friday, touching a one-month low, as the U.S. pushed for a Russia-Ukraine peace deal that could boost global oil supplies.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up 0.4%.