The Saudis make their latest payment in their purchase of Donald Trump
 |
| A rendering of Trump International Golf Club, Wadi Safar (Dar Global) |
On November 18, Saudi Arabian Crown Prince Mohammed bin Salman (MBS) visited Donald Trump at the White House. During his meeting with MBS, Trump agreed to provide Saudi Arabia with unprecedented levels of cooperation and support.
Trump named Saudi Arabia a “major
non-NATO ally,” a coveted
designation that comes with “defense trade and security cooperation
benefits, including access to joint research and development programs with the
Pentagon and privileged access to US weaponry, training and loans.”
Further, Trump agreed to
sell 300 Abrams tanks and an unspecified number of F-35 fighter jets to Saudi
Arabia. Previously, Israel was the only country in the Middle East permitted to
buy F-35s. Acquiring the advanced jets has long been a priority for MBS and the
Saudi government.
Trump also agreed to cooperate with
Saudi Arabia on civilian nuclear energy and to provide Saudi Arabia with access
to advanced AI chips.
In addition to the practical benefits to Saudi Arabia, the
visit helped burnish the international standing of MBS, who American
intelligence concluded directed the murder of a U.S.-based journalist, Jamal
Khashoggi. Trump called MBS a “very
good friend of mine.”
Now, a few weeks later, MBS appears to be returning the
favor.
The Trump Organization announced it would be partnering with
Dar Global to build a $7
billion “Trump-branded hotel and golf course” in Saudi Arabia. The
development in Diriyah “will
include 500 mansions, priced between $6.7 million and $24 million.”
The project is part of Diriyah, a $63 billion development financed by the Saudi Public Investment Fund (PIF). MBS is the chairman of PIF.
Eric Trump, in the press
release announcing the new development, said it “will redefine luxury
and excellence in the region, setting a new standard that reflects the brand’s
enduring commitment to quality, prestige and timeless elegance.”
When Trump visited Saudi Arabia last May, MBS took him on a tour of Diriyah and showed him a model of the redevelopment project.
Among other financial incentives, these deals involve the
developer paying millions in fees simply to license the Trump name. About 80%
of the money will flow directly to Trump, according to reporting on
similar deals by Forbes.
During Trump’s first term, he established an ethics
agreement that prohibited the Trump Organization from engaging in any
new foreign deals — because such deals constituted an obvious conflict of
interest. In his second term, Trump dropped that prohibition and instead agreed
that the Trump Organization would not sign any deals directly
with foreign governments.
The $7 billion development in Diriyah appears to violate
that restriction. Dar Global, the Trump Organization’s official partner,
is closely
tied to the Saudi government. Moreover, the entire Diriyah development is
funded by the Saudi government through the PIF. The Trump Organization press
release notes the new development is part of the master plan being implemented
by the Diriyah Company. But the Diriyah Company is a wholly
owned subsidiary of PIF.
According to Jerry Inzerillo, who heads the Diriyah Company,
Trump was “amazed“
by the project when he visited last year. “As a developer, he loves scale, he
loves quality, he loves finishes,” Inzerillo said.
The White House generally deflects questions about conflicts of interest related to the Trump Organization by noting that the company is being held in a trust during his presidency. But the trust is just a legal artifice and does nothing to eliminate conflicts.
Trump’s interest in the Trump Organization
is being formally held by his son, Donald Trump Jr. However, Trump retains his
ownership stake and has access to information about its financial performance.
The ethics agreement prohibits Trump’s involvement in “day-to-day” management
but is silent on larger strategic decision-making.
The Trump Organization also announced a separate $3
billion deal with Dar Global to construct Trump Plaza in Jeddah, Saudi
Arabia.
