DUBAI: Emirati billionaire Hussain Sajwani has expressed optimism about the future of Gulf investments in the United States as President-elect Donald J. Trump prepares for his second term. Sajwani, a prominent real estate tycoon and long-time business partner of Trump, predicts that Trump’s “pro-business” climate will attract more investments from the oil-rich Gulf region.
A Significant Investment Plan
During a recent announcement at Trump’s Mar-a-Lago resort in Florida, Sajwani revealed plans for a substantial $20 billion investment in data centers across eight U.S. states over the next few years. This investment comes through his Dubai-based real estate firm, DAMAC Properties, which notably owns the only Trump-branded golf course in the Middle East. Sajwani emphasized that Trump has committed to expediting regulatory processes for such large-scale investments, which he believes will encourage further investment in the U.S.
“I think his overall policies are pro-business,” Sajwani told Reuters from his home on Dubai’s Palm Jumeirah island. He highlighted significant opportunities in artificial intelligence (AI) and technology, suggesting that Trump’s administration would facilitate a more favorable environment for foreign investors.
Strong Ties and Investments
Sajwani is not only recognized for his contributions to Dubai’s residential landscape but also as an investor in high-profile ventures such as Elon Musk’s SpaceX and the AI company xAI. He celebrated New Year’s with Trump, Musk, and other notable figures at Mar-a-Lago, and has been invited to attend the inauguration in Washington on January 20.
According to Forbes, Sajwani’s net worth is estimated at $5.1 billion. Trump and his family maintain extensive business connections in the Gulf region, with Trump-branded real estate projects in Saudi Arabia and Oman. Additionally, Gulf state-owned funds are invested in an investment firm led by Trump’s son-in-law, Jared Kushner. Sovereign wealth funds from the Gulf are also major players in U.S. investments.
The Race for AI Leadership
The UAE is actively pursuing its goal of becoming a leader in artificial intelligence, joining Qatar and Saudi Arabia in significant investments to establish themselves as potential global AI hubs. Sajwani’s investment in data centers will be managed by EDGNEX, a subsidiary of DAMAC, which is already operational in the Middle East, Asia, and Europe.
Over the next four years, EDGNEX plans to build and own data centers with a total capacity of 2,000 megawatts in states like Texas, Arizona, and Illinois, leveraging the region’s favorable conditions such as land availability, energy resources, and supportive regulatory frameworks. Sajwani indicated that most of the investment would be financed through debt, with DAMAC aiming to fund 60%-70% of the projects this way, using global banks for support.
Navigating Regulatory Processes
Sajwani acknowledged that the deal may face scrutiny from the Committee on Foreign Investment in the United States (CFIUS), which evaluates foreign investments for national security implications. Some Gulf officials have voiced concerns about the lengthy review process. However, Sajwani remains confident that the new administration will streamline regulatory procedures to encourage foreign investments.
“We know from the overall policy of the government that it will be more encouraging to foreign investment,” he said, anticipating a more efficient approval process for significant investment deals.
Conclusion
As Hussain Sajwani leads a major investment initiative into the U.S. under Trump’s anticipated pro-business policies, it marks a significant shift in Gulf investment strategy. With the promise of increased foreign investment opportunities, the relationship between the Gulf states and the United States may strengthen in the coming years, paving the way for enhanced economic collaboration in technology and infrastructure.
