meed-logo

line1 line2 line3
SIGN IN / REGISTER

Trump 2.0 targets technology

30 January 2025

 

As Donald Trump settles into his second term, dubbed ‘Trump 2.0’, the administration is set to bring about a seismic shift in global technology, artificial intelligence (AI) regulation, data sovereignty, cryptocurrency and the ever-escalating US-China tech war.

The central role that technology is expected to play was demonstrated at Trump’s inauguration on 20 January, where Tesla and SpaceX CEO Elon Musk, Meta CEO Mark Zuckerberg, Alphabet Inc CEO Sundar Pichai and Amazon founder Jeff Bezos had prime seats.

With Trump championing policies prioritising domestic interests and reshaping international dynamics, Middle Eastern investors and companies will play a key role in shaping this new era of tech-infused geopolitics.

The wheels are already turning. On 22 January, just two days after Trump’s inauguration, he announced that Abu Dhabi- based AI-focused fund MGX has teamed up with US-based tech firms Oracle and ChatGPT creator OpenAI, and Japan’s Softbank, to form the Stargate project, which aims to invest $500bn to build AI infrastructure in the US.

When announcing the project, Trump described it as “the largest AI infrastructure project by far in history”.

America first

Two weeks earlier, on 7 January, Hussain Sajwani, founder and chairman of UAE-based Damac Properties and Damac Group, made headlines by pledging $20bn to develop data centres in the US.

Sajwani’s $20bn commitment to US data centres is not just a business transaction – it demonstrates the UAE’s strategic pivot to align with Trump’s America First policy. Unlike the real estate deals offered by Sajwani that Trump publicly declined in 2017, the latest investment offer places resources directly into the US, promising jobs, innovation and a fortified tech infrastructure in states including Texas, Ohio and Michigan.

For MGX, Sajwani and other Gulf investors, the deal offers not only financial returns but also political capital in an administration that values loyalty and mutual economic benefit. 

The timing is also strategic: as Trump prepares to loosen regulatory constraints on AI and data, Gulf nations have the opportunity to tap into US expertise while positioning themselves as indispensable partners in the rapidly shifting tech landscape.

Tech wars

Geographically and politically, the Middle East – particularly the GCC states – sits in the middle of the simmering tech war between China and the US, which may boil over during the Trump presidency.

The decoupling of the two economies is expected to continue, with Trump reinforcing policies that discourage US companies from engaging with Chinese firms.

Policies could involve stricter foreign investment vetting and expanded technology transfer restrictions to China. The Trump administration has also threatened to impose high tariffs on Chinese goods, which could disrupt the established ties between US and Chinese tech industries. 

The ongoing tensions could lead to a bifurcation of global supply chains, with significant implications for companies operating in both markets.

For Middle Eastern countries, this decoupling offers a rare window of opportunity. As the US and China distance from one another, GCC players can position themselves as neutral ground for technology partnerships. The region could bridge the two worlds by attracting global firms to invest in regional tech hubs that offer a haven for talent and innovation.

Trump’s America First policies are also expected to accelerate the development of the US semiconductor sector, a critical component of the tech war. While this could disrupt global supply chains, it may also create demand for GCC investments in US tech manufacturing and research facilities, further deepening economic ties.

Another transformative area of Trump’s second term will be his approach to AI.

On 13 January, just days before Trump took office, the White House issued a brief of a regulation by the Department of Commerce imposing controls on the exports of advanced computing integrated circuits that support AI.

The regulation’s final draft divides countries into three tiers. Chip exports to the top-tier countries, comprising 18 of the closest US allies, are “without limit”, while the third tier is reported to comprise countries of concern, including Macau (China) and Russia.

All other nations and states, including those in the GCC, are presumed to be mid-tier countries, where a cap of approximately 50,000 graphics processing units between 2025 and 2027, will apply.

Individual companies from these countries will be able to achieve higher computing capability if they comply with US regulations and obtain validated end-user status.

The White House brief is no longer available online, but a copy of the regulation can still be found in the Federal Register, the US government’s daily journal.

Middle Eastern investors and companies will [help shape] this new era of tech-infused geopolitics

Deregulation likely

The regulation-heavy approach of former president Joe Biden’s administration will likely give way to a deregulatory environment, emphasising commercial innovation over antitrust crackdowns.

For GCC countries such as Saudi Arabia and the UAE, this presents a double-edged sword. Both nations have ambitious AI investment plans – Abu Dhabi’s MGX partnership with BlackRock and Microsoft aims to mobilise $100bn for AI infrastructure, while Riyadh’s Project Transcendence seeks to redefine the region’s technological footprint. Trump’s deregulatory policies could catalyse innovation and partnerships with US firms, offering access to cutting-edge AI solutions.

The emphasis on deregulation may also create challenges. Without robust ethical and safety guidelines, the global AI ecosystem could face reputational risks, making cross-border collaborations more complex. For the GCC, balancing the benefits of US technological advancements with the need for ethical AI development will be a delicate dance.

As geopolitical tensions rise, the effects of Trump’s focus on data sovereignty will reach far beyond US borders. Nations increasingly prioritise data protection, creating stricter regulations to control where and how data is stored, and the GCC, with its ambitious AI and data centre projects, must adapt swiftly to these changes.

The outlook for developing energy-hungry data centres in the US could be further bolstered by plans to deregulate the energy industry. 

“If energy deregulation is unleashed, the biggest beneficiaries of Trump’s energy policies could be in data centre buildout, with implications for US leadership in AI, both in next-generation technologies and economic dominance over the coming generation,” according to a report by GlobalData’s TS Lombard.

For Middle Eastern businesses, Trump’s policies could mean stricter requirements when working with US tech firms. Data from US companies and citizens may need to be stored domestically, complicating cross-border operations. 

However, this also presents an opportunity for the GCC states to bolster their data sovereignty frameworks, attracting investments from companies seeking alternatives to US or Chinese infrastructure.

The unexpected should be expected, and the future belongs to those who adapt the fastest

Backing Bitcoin

Cryptocurrency is another major opportunity for the GCC. 

Trump’s surprising endorsement of Bitcoin – the price of which recently surged past $75,000 – signals a potential shift in US crypto policy. A more favourable regulatory environment under Trump could drive mainstream adoption of cryptocurrencies, attracting investors and innovators alike.

As regional players such as the UAE have been pioneers in blockchain technology, this could catalyse further growth. 

Dubai’s Blockchain Strategy 2025, aimed at positioning the emirate as a global blockchain hub, aligns well with Trump’s pro-Bitcoin stance. By collaborating with US firms and leveraging blockchain’s potential for financial and governmental applications, the GCC could cement its position as a leader in the cryptocurrency space.

As his backing of Bitcoin demonstrates, Trump’s position on tech issues is hard to predict. This was reinforced when he issued an executive order allowing social media application TikTok to resume services to its 170 million users in the US. 

On 18 January, the Chinese-owned app stopped working in the US after a law banning it on national security grounds came into effect. Trump had previously supported plans to ban the app. 

For business and government alike, the message is clear: the unexpected should be expected, and the future belongs to those who adapt the fastest.

As Trump reshapes the global tech landscape, GCC investors like Sajwani are well positioned to capitalise on the changes. The US-China decoupling, AI deregulation and a focus on data sovereignty create openings for Middle Eastern nations to assert themselves as key players in the global tech economy.

Challenges remain. Trump’s America First policies could lead to tighter restrictions on foreign investments, requiring Gulf investors to navigate a more complex regulatory environment. Additionally, the potential talent drain to the US, driven by Trump’s prioritisation of domestic commercial interests, could slow the region’s AI ambitions.

To stay competitive, GCC nations will need to double down on their investments in education, infrastructure and innovation. By fostering homegrown talent and creating favourable conditions for international partnerships, the region can mitigate the risks of Trump’s policies while reaping the rewards. 

READ MEED’s YEARBOOK 2025

MEED’s 16th highly prized flagship Yearbook publication is available to read, offering subscribers analysis on the outlook for the Mena region’s major markets.

Published on 31 December 2024 and distributed to senior decision-makers in the region and around the world, the MEED Yearbook 2025 includes:

> GIGAPROJECTS INDEX: Gigaproject spending finds a level
https://image.digitalinsightresearch.in/uploads/NewsArticle/13349615/main.gif
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Municipality seeks consultants for Dubailand drainage project

    10 December 2025

    Register for MEED’s 14-day trial access 

    Dubai Municipality has invited consultants to prequalify for a contract to provide supervision services on a major drainage infrastructure project serving developed communities in Dubailand.

    The sewerage and stormwater drainage project, listed under the code DS-204-S1, is being procured through the government’s Sewerage and Recycled Water Projects Department (SRPD).

    The bid submission deadline is 8 January.

    The consultancy contract follows the issuance in November of the related construction package, DS-204-C1, for which the municipality invited contractors to prequalify.

    The scope includes sewage gravity pipelines with diameters of up to 2,200mm, a sewage lift station with a capacity of three cubic metres a second, and a 1,400mm-diameter sewage rising main that will take pumped sewage from the lift station to the main sewer network.

    The bid submission deadline for the construction package is also 8 January 2026.

    The tenders form part of Dubai’s wider investment in sewerage expansion, including the $8bn Tasreef programme, for which several projects have moved into the execution phase in recent months.

    Once completed, the Tasreef system is expected to increase Dubai’s overall drainage capacity by about 700% and provide daily stormwater treatment capacity exceeding 20 million cubic metres.

    READ THE DECEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Prospects widen as Middle East rail projects are delivered; India’s L&T storms up MEED’s EPC contractor ranking; Manama balances growth with fiscal challenges

    Distributed to senior decision-makers in the region and around the world, the December 2025 edition of MEED Business Review includes:

    > BAHRAIN MARKET FOCUS: Manama pursues reform amid strain
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15218750/main.jpg
    Mark Dowdall
  • Riyadh prepares Qiddiya National Athletics Stadium tender

    9 December 2025

     

    Register for MEED’s 14-day trial access 

    Saudi gigaproject developer Qiddiya Investment Company (QIC) is expected to float a tender soon for the construction of the estimated SR7bn ($1.8bn) National Athletics Stadium at its Qiddiya entertainment city development.

    MEED understands that the prequalification process has reached an advanced stage and the tender for the main contract is likely to be issued within a few weeks.

    The multipurpose stadium will cover an area of approximately 182,000 square metres and its design is inspired by the London Olympic Stadium.

    In September, MEED exclusively reported that QIC had begun the procurement process for the kingdom’s next major sporting destination, having received expressions of interest from contractors for the project.

    UK-based HOK is the project’s lead design consultant. It is supported by Canadian engineering firm WSP and Germany’s Schlaich Bergermann Partner.

    UK-headquartered WT Partnership is serving as the project’s cost consultant.

    The stadium will be located within the Qiddiya Sports Park cluster and is expected to be completed by 2030.

    In December 2020, Saudi Arabia was selected to host the 2034 Asian Games. The 22nd edition of the event will be held in Riyadh from 29 November to 14 December 2034.

    Saudi Arabia is also set to host the Asian Winter Games in 2029. In October 2022, the Trojena development at Neom, in the northwest of the country, was selected to host the ninth edition of the event.

    The National Athletics Stadium is one of several major projects within the wider Qiddiya development. Others include an e-games arena, Prince Mohammed Bin Salman Stadium, a performing arts centre, a motorsports track, Dragon Ball and Six Flags theme parks and Aquarabia waterpark.

    The project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom. According to UK analytics firm GlobalData, leisure tourism in Saudi Arabia has experienced significant growth in recent years.

    Domestic leisure tourism trips increased to 33.76 million in 2023, up from 16.74 million in 2018. International tourist arrivals for recreational purposes increased by 600% from 2018 to 2023.

    Image: Buro Happold

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15217660/main.jpg
    Yasir Iqbal
  • Contractors submit prices to Adnoc Gas for Ruwais NGL project

    9 December 2025

     

    Register for MEED’s 14-day trial access 

    Contractors have submitted commercial proposals to Adnoc Gas for engineering, procurement and construction (EPC) work as part of a design‑update competition for a project to install a fifth natural gas liquids (NGL) fractionation train at its Ruwais gas processing facility in Abu Dhabi.

    The fifth NGL fractionation train will have an output capacity of 22,000 tonnes a day (t/d), or about 8 million tonnes a year.

    Adnoc Gas, the natural gas processing business of Abu Dhabi National Oil Company (Adnoc Group), has adopted the design-update competition model to deliver the Ruwais NGL Train 5 project, MEED previously reported.

    The design-update competition model involves the project operator selecting contractors to execute front-end engineering design (feed) work on the project. The operator selects the contractor with the most competitive feed proposal to execute EPC works on the project, while also compensating the other contestants for their work.

    According to sources, contractors participating in the design-update competition for the Ruwais NGL Train 5 project submitted commercial bids for EPC works by the deadline of 8 December.

    The previous deadline for price submissions was 30 November, sources said.

    Adnoc Gas previously asked contractors to submit their feed technical proposals for the project in September.

    In January, MEED reported that Adnoc Gas had selected the following contractors to participate in the design-update competition for the Ruwais NGL Train 5 project:

    • JGC Corporation (Japan)
    • Technip Energies (France)
    • Tecnimont (Italy)

    MEED previously reported that participants had submitted technical proposals for feed work on 6 October.

    The scope of work on the Ruwais NGL Train 5 project covers the EPC of the following units:

    • NGL fractionation plant with a capacity of 22,000 t/d, including NGL fractionation facilities, downstream treatment units, sulphur recovery units, products storage, loading facilities and associated utilities, flares and interconnection pipelines with existing facilities
    • Two propane liquefied petroleum gas storage tanks and one paraffinic naphtha storage tank
    • Buildings – a central control building, outstations, substations and plant amenities
    • Electrical power connections. Power is to be sourced from the nearby Transco substation via a direct underground cable to the plot location.

    Adnoc Gas requires the feed on the project to be updated based on the design of Ruwais NGL Train 4, which has an output capacity of 27,000 t/d and was commissioned in 2014.

    In December 2021, MEED reported that Adnoc Gas, then operating as Adnoc Gas Processing, had awarded Indian contractor Larsen & Toubro Hydrocarbon Engineering the main contract for a project to enhance the capacity of its NGL trains 1-4 at the Ruwais complex.

    ALSO READ: Adnoc Gas capex budget to rise to $28bn by 2029

    Adnoc Gas business

    Adnoc Group announced the creation of Adnoc Gas through the merger of its subsidiaries Adnoc Gas Processing and Adnoc LNG in November 2022. Adnoc Gas began operating as a commercial entity on 1 January 2023.

    The consolidation of Adnoc’s gas processing and liquefied natural gas (LNG) operations into Adnoc Gas has created one of the world’s largest gas-processing entities, with a processing capacity of about 10 billion standard cubic feet of gas a day across eight onshore and offshore sites, which include its Asab, Bab, Bu Hasa, Habshan and Ruwais plants.

    The company also owns a 3,250-kilometre (km) gas pipeline network to supply feedstock to its customers in the UAE. This sales gas pipeline network is being expanded to over 3,500km through the estimated $3bn Estidama project.

    The company will also acquire its parent Adnoc Group’s 60% share in the Ruwais LNG terminal project at cost in the second half of 2028. UK energy producer BP, Japan’s Mitsui & Co, UK-based Shell and French energy producer TotalEnergies are the other shareholders in the project, holding 10% stakes each.

    Adnoc Gas share sale

    In February 2025, Adnoc Group completed a marketed offering of approximately 3.1 billion shares in Adnoc Gas, raising $2.8bn from the exercise.

    The offering consisted of 3,070,056,880 shares, representing 4% of the issued and outstanding share capital of Adnoc Gas.

    Following the marketed offering of shares, Adnoc Group continues to hold the majority 86% of shares in Adnoc Gas.

    The parent entity listed 5% of Adnoc Gas’ shares on the Abu Dhabi Securities Exchange in March 2023, in an initial public offering from which it raised about $2.5bn.

    Abu Dhabi National Energy Company (Taqa) owns the remaining 5% shares in Adnoc Gas.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15217598/main2533.jpg
    Indrajit Sen
  • Saudi Arabia and Qatar sign high-speed rail link agreement

    9 December 2025

    Register for MEED’s 14-day trial access 

    Saudi Arabia and Qatar have signed an agreement to build a proposed high-speed rail line connecting Riyadh and Doha.

    The agreement was signed by Saudi Arabia's Transport & Logistics Services Minister, Saleh Al-Jasser, and Qatar's Transport Minister, Sheikh Mohammed Bin Abdulla Bin Mohammed Al-Thani.

    The high-speed railway line will cover 785 kilometres (km) and will pass through Hofuf and Dammam, while also linking King Salman International airport and Hamad International airport.

    The train's speed will exceed 300 kilometres an hour, reducing travel time between the two capitals to about two hours.

    The project is slated for completion in six years. The project is expected to serve over 10 million passengers annually and create more than 30,000 direct and indirect jobs.

    Riyadh and Doha relaunched a proposed rail link connecting the two countries in 2022, after agreeing to set a date to begin studying the connection. 

    In July of that year, France’s Systra was selected to conduct a feasibility study on the proposed scheme, as MEED reported.

    A rail link connecting Saudi Arabia and Qatar was planned before the diplomatic dispute that froze relations between Riyadh and Doha from 2017 until the Al-Ula Declaration was signed in January 2021.

    In 2016, Qatar Railways Company (Qatar Rail) was planning to tender the design-and-build contract for the construction of regional railways in Qatar, including the link connecting to the Saudi border.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15217463/main.gif
    Yasir Iqbal
  • Oman green hydrogen projects cancelled

    8 December 2025

    Hydrogen Oman (Hydrom), France’s Engie and South Korea’s Pohang Iron & Steel Company (Posco) have cancelled plans to move forward with the $6.7bn HyDuqm green hydrogen project.

    In a joint statement, the firms said they had reached a decision to end the scheme by mutual consent following an “in-depth assessment” of global renewable hydrogen offtake dynamics and investment frameworks.

    The HyDuqm scheme was one of the largest green hydrogen projects awarded under Oman’s first auction round in 2023.

    The proposed development included around 5GW of combined solar and wind capacity, supported by battery energy storage, to power an electrolysis plant producing hydrogen for conversion into green ammonia.

    The facility was expected to deliver up to 1.2 million tonnes of green ammonia a year by 2030, with Posco as the main offtaker to support the decarbonisation of its steel operations.

    The consortium, led by Posco (28%) and Engie (25%), had secured a 47-year concession with the state-owned Hydrom to develop a 320-square-kilometre site near the Port of Duqm.

    Samsung Engineering, Korea Southern Power and Korea East-West Power had a 12% stake, with Thailand’s PTTEP holding the remaining 11%.

    As recently as May, the partners were still targeting a final investment decision in 2027, subject to detailed economic and technical feasibility assessments.

    Separately, a second Hydrogen project in the same area, owned by the UK’s BP, has also been cancelled. BP withdrew its plans for the Duqm green hydrogen project, which had secured land rights for the 1.5GW facility.

    Hydrom managing director, Abdulaziz Al-Shidhani, told the 2025 Green Hydrogen Summit in Oman last week that only seven of the nine original projects that won land tenders were progressing.

    Wider slowdown

    The cancellations come amid a broader slowdown in green hydrogen development globally. Several major schemes have been postponed, scaled back or withdrawn as project economics have tightened.

    In Europe, more than one-fifth of planned hydrogen projects had been stalled or cancelled by the end of 2024, according to research and consultancy firm Westwood Global Energy, largely due to high costs, uncertain demand and slow progress securing long-term offtake.

    A similar trend has emerged in the GCC, where Saudi Arabia’s flagship Neom green hydrogen project has also faced offtake and market pressures despite reaching an $8.4bn financial close in 2023.

    The 4GW scheme, designed to produce about 1.2 million tonnes a year of green ammonia, has reportedly struggled to secure multiple international buyers, with only limited offtake confirmed to date.

    Hydrogen production costs

    Global green hydrogen production costs also remain significantly higher than conventional alternatives, typically in the range of $3-$8 a kilogram compared with roughly $0.5-$2/kg for hydrogen produced from fossil fuels, leaving large export-oriented projects exposed to pricing and demand uncertainty.

    The combination of elevated capital costs, slow offtake development and evolving policy frameworks has created headwinds for investment decisions across the sector.

    In the joint statement, however, Hydrom said it is committed to “developing a competitive hydrogen-centric economy” aligned with Oman’s Vision 2040.

    It added that projects awarded in the first two auction rounds are progressing on schedule towards the country’s target of producing more than one million tonnes a year of green hydrogen by 2030.

    The company also highlighted continued international interest in the sector, noting that the third auction round is under way with strong foreign participation.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15214080/main.jpg
    Mark Dowdall