Trump's Impact on the New Look Middle East: A Shifting Landscape for Investors

The New Look Middle East, an initiative aimed at drawing investors to the region, gained significant traction before the election of Donald Trump as U.S. President in 2016. However, Trump's policies and statements have since created a shifting landscape for investors, with both challenges and opportunities emerging. This article explores the impact of Trump's presidency on the Middle East's investment climate and the sectors that have shown promise despite the geopolitical changes.

Trump's Policies and the Middle East

Trump's "America First" approach and focus on domestic priorities have led to a reduction in U.S. involvement in regional conflicts and a shift in U.S. policy towards the Middle East. This shift has created uncertainty for investors, as the U.S. had traditionally played a significant role in the region's security and stability (Dania Thafer, 2025).

Trump's decision to withdraw from the Iran Nuclear Deal (JCPOA) in 2018 and impose maximum pressure on Iran through sanctions created further uncertainty for investors. The uncertainty surrounding Iran's nuclear program and the potential for conflict with the U.S. and its allies in the region affected investor sentiment and decisions (Dania Thafer, 2025).

However, Trump's administration also brokered the Abraham Accords in 2020, leading to the normalization of relations between Israel and several Arab countries, including the United Arab Emirates, Bahrain, and Sudan. This development created new opportunities for investment and trade in the region, particularly in the energy and technology sectors (Dania Thafer, 2025).

Sectors Showing Promise Despite Geopolitical Changes

Despite the geopolitical shifts, several sectors in the Middle East have shown promise for investors:

1. Renewable Energy: The Middle East has significant potential for renewable energy, particularly solar and wind power. Saudi Arabia, for instance, aims to generate 50% of its electricity from renewable sources by 2030. Trump's policies, such as the U.S. withdrawal from the Paris Agreement and support for fossil fuel industries, may have some impact on this sector, but the long-term trend towards renewable energy is expected to continue.
2. Technology and Artificial Intelligence (AI): The Gulf region is actively advancing its agendas in digital diplomacy and competing in the tech race of the Fourth Industrial Revolution. Trump's close ties with business leaders like Elon Musk and his focus on economic deals may heighten Gulf interest in tech deals with the U.S. However, Trump's policies on immigration and H-1B visas could potentially hinder the growth of the tech sector in the Middle East.
3. Defense and Security: The Middle East is a significant market for defense and security products. Trump's policies, such as the sale of F-35 fighter jets to the UAE and the expansion of the Abraham Accords, could potentially boost this sector. However, his policies on export controls, focusing more on preventing sensitive U.S. technologies from being transferred to China, may impact Middle Eastern customers that have relationships with state-linked entities in China.

Navigating the Geopolitical Landscape

Regional political dynamics, such as the Israeli-Palestinian conflict and Iran's nuclear program, have significantly influenced investment decisions in the Middle East, and a Trump administration may further impact these dynamics. Investors must carefully evaluate the geopolitical landscape and its implications for their investments in the region. By staying informed and adaptable, investors can capitalize on the opportunities that arise despite the challenges posed by shifting geopolitical landscapes.

In conclusion, Trump's presidency has created a shifting landscape for investors in the Middle East, with both challenges and opportunities emerging. Despite the geopolitical changes, several sectors in the region have shown promise for investors, and by staying informed and adaptable, investors can navigate the geopolitical landscape and make informed decisions.