Trump’s Economic Playbook Mirrors Saudi Arabia’s State-Driven Model, Analysts Say
Observers draw parallels between President Donald Trump’s investment-led strategy and Crown Prince Mohammed bin Salman’s state-capitalist template in Riyadh
President Donald Trump’s second-term economic agenda is increasingly being characterised as echoing the state-guided investment model deployed by Saudi Arabia under Crown Prince Mohammed bin Salman.
On a recent investment tour of the Gulf, Mr Trump emphasised large-scale capital flows, direct government intervention and industrial strategy — strategies long seen as central to Riyadh’s approach.
At a major Gulf investment conference backed by Saudi Arabia’s sovereign wealth fund, the president’s son, Donald Trump Jr., presented his firm 1789 Capital as an extension of his father’s ‘‘America First’’ economic vision, explicitly aligning its investment strategy with national priorities.
Meanwhile in Riyadh high-profile megaprojects such as NEOM have relied on the state-owned Public Investment Fund to channel hundreds of billions of dollars into new industries and infrastructure — a model the U.S. administration appears to be emulating.
Analysts note that Mr Trump’s government has repurposed federal agencies and public financing tools to direct capital to sectors like semiconductors, critical minerals and defence.
Some of these investments involve stakes in private firms, raising questions about the evolution of traditional market-based models.
The U.S. is now seen by observers as shifting from being purely a regulator or enabler to becoming a strategic investor in line with the Gulf paradigm of state capitalism.
The analogy becomes sharper in light of recent U.S.–Saudi economic diplomacy.
Saudi Arabia has committed to invest at least six-hundred billion dollars in the United States over the next four years, a pledge announced during talks with President Trump and aligned with Riyadh’s Vision 2030 diversification agenda.
In turn, the president has touted major acquisition deals and defence-industry agreements as part of a grander economic-strategic blueprint.
While the two systems differ in political structure, the convergence lies in the role of the state as orchestrator of investment, and the family-brand leadership style embodied by both Mr Trump and the Saudi prince.
U.S. officials at the conference noted that the president’s ‘‘guidance’’ on capital allocation resembles the Crown Prince’s direct influence in Riyadh’s economic affairs.
Critics have labelled this evolution ‘‘state capitalism’’—a hybrid system where nominally private enterprise is steered by public policy priorities.
Yet proponents argue that strong strategic direction and coordinated finance are necessary to compete in a world of rival state-led economies.
Some of Mr Trump’s advisers say this approach allows the U.S. to reclaim its industrial edge and align business sectors with national security.
The broader implication is that U.S. economic-diplomatic strategy is shifting from open markets and minimal government to managed markets and national investment arms.
For Saudi Arabia, the relationship is mutually reinforcing: a trusted partner in Mr Trump and a model of guided economic transformation.
As 2025 progresses, both capitals are positioning themselves at the intersection of geopolitics and capital flows, signalling that personal leadership, brand power and state-driven finance are central to the next chapter of global economic competition.
On a recent investment tour of the Gulf, Mr Trump emphasised large-scale capital flows, direct government intervention and industrial strategy — strategies long seen as central to Riyadh’s approach.
At a major Gulf investment conference backed by Saudi Arabia’s sovereign wealth fund, the president’s son, Donald Trump Jr., presented his firm 1789 Capital as an extension of his father’s ‘‘America First’’ economic vision, explicitly aligning its investment strategy with national priorities.
Meanwhile in Riyadh high-profile megaprojects such as NEOM have relied on the state-owned Public Investment Fund to channel hundreds of billions of dollars into new industries and infrastructure — a model the U.S. administration appears to be emulating.
Analysts note that Mr Trump’s government has repurposed federal agencies and public financing tools to direct capital to sectors like semiconductors, critical minerals and defence.
Some of these investments involve stakes in private firms, raising questions about the evolution of traditional market-based models.
The U.S. is now seen by observers as shifting from being purely a regulator or enabler to becoming a strategic investor in line with the Gulf paradigm of state capitalism.
The analogy becomes sharper in light of recent U.S.–Saudi economic diplomacy.
Saudi Arabia has committed to invest at least six-hundred billion dollars in the United States over the next four years, a pledge announced during talks with President Trump and aligned with Riyadh’s Vision 2030 diversification agenda.
In turn, the president has touted major acquisition deals and defence-industry agreements as part of a grander economic-strategic blueprint.
While the two systems differ in political structure, the convergence lies in the role of the state as orchestrator of investment, and the family-brand leadership style embodied by both Mr Trump and the Saudi prince.
U.S. officials at the conference noted that the president’s ‘‘guidance’’ on capital allocation resembles the Crown Prince’s direct influence in Riyadh’s economic affairs.
Critics have labelled this evolution ‘‘state capitalism’’—a hybrid system where nominally private enterprise is steered by public policy priorities.
Yet proponents argue that strong strategic direction and coordinated finance are necessary to compete in a world of rival state-led economies.
Some of Mr Trump’s advisers say this approach allows the U.S. to reclaim its industrial edge and align business sectors with national security.
The broader implication is that U.S. economic-diplomatic strategy is shifting from open markets and minimal government to managed markets and national investment arms.
For Saudi Arabia, the relationship is mutually reinforcing: a trusted partner in Mr Trump and a model of guided economic transformation.
As 2025 progresses, both capitals are positioning themselves at the intersection of geopolitics and capital flows, signalling that personal leadership, brand power and state-driven finance are central to the next chapter of global economic competition.