Donald Trump has signaled that Gulf allies will funnel investments into the United States rather than pay direct fees for American military protection, a pivot that effectively repackages security costs as economic partnerships.
The statement comes after weeks of escalating rhetoric about Gulf nations reimbursing Washington for decades of security guarantees, particularly as tensions with Iran continue to simmer.
From fees to investments: the numbers
The groundwork for this approach was laid during Trump’s May 2025 Gulf tour, which produced over $2 trillion in investment commitments from Gulf states. Saudi Arabia alone accounted for $600 billion of that total, while the UAE made a staggering 10-year investment pledge of $1.4 trillion.
The commitments span American technology, energy, and defense sectors. A notable $142 billion arms package from Saudi Arabia anchors the defense component, and former Trump adviser Gary Cohn indicated in March 2026 that Gulf states are likely to increase their US investments further, especially in the defense space.
