• Trump arrives in Saudi Arabia with a USD 1 trillion investment wishlist, aiming to boost U.S. ties in tech and defense.
• Saudi Arabia is set to unveil its AI venture, Humain, as part of broader efforts to diversify its oil-dependent economy.
• Economists doubt the USD 1 trillion target, citing Saudi budget deficits and existing financial strains from megaprojects like Neom.

Trump in Saudi

What happened? President Trump is set to arrive in Saudi Arabia on the 13th of May 2025. The NYT reports that he arrived with a USD 1 trillion wishlist for investments in the United States.

Additionally, a key part of this visit will be the launch of Saudi Arabia’s new AI venture, Humain. Furthermore, several multibillion-dollar deals in AI, defense, and energy are expected to be announced during the visit.

Is this realistic? The NYT reports that economists are saying that neither figure is realistic. This is because Saudi is facing a budget deficit that could reach USD 70 billion. Thus, economists predict that Saudi investments would increase during the Trump administration but are unlikely to approach USD 1 trillion.

What’s the background? In January 2025, Saudi Crown Prince Mohamed Bin Salman told US President Donald Trump that Saudi Arabia will expand its investments and trade with the US by USD 600 billion over the next four years. However, Trump has urged MBS to increase that figure to USD 1 trillion. 

Humain

What is Humain? The Public Investment Fund’s new AI initiative, Humain, adds a new dimension to Saudi Arabia’s economic diversification strategy. 

Humain will focus on developing advanced Arabic language models and building AI infrastructure, with investments coming from the kingdom’s sovereign wealth fund.

The AI sector is seen as a key area of growth for the kingdom, with the aim of reducing its dependence on oil. 

However, the kingdom’s overall fiscal outlook, driven by volatile oil prices, complicates the realization of such grand goals.

What’s next?  While the USD 1 trillion figure is likely unattainable, the visit is expected to result in concrete deals, particularly in the tech and defense sectors. 

Saudi Arabia’s investments in AI, led by Humain, will be a major topic of discussion.. These investments come as the U.S. government has expedited its approval process for foreign investments in American tech. Furthermore, this is to accelerate AI investments in the US and ease access to American chips  for Gulf nations.

The GCC is increasingly viewing AI as an avenue to reduce their dependence on oil and develop new industries.

Why does it matter?  Trump’s push for USD 1 trillion in investments may not materialize, but the focus on AI and tech is a sign of how the Gulf is pivoting toward diversifying its economies. While Saudi Arabia’s budgetary constraints and domestic megaprojects like Neom pose challenges, investments in AI remain a top priority. These developments are crucial for the U.S. tech industry, which has been seeking to expand its footprint in the Gulf.

Moreover, the launch of Humain aims to position Saudi Arabia as an important player in the AI race.  The kingdom’s approach to AI investments, through funds like the PIF, represents a push to become a tech hub.