President Donald Trump’s recent visit to the Middle East resulted in the announcement of over $2 trillion in investment deals aimed at bolstering U.S. economic interests. These agreements encompass a range of sectors, including defense, technology, and infrastructure, and involve key Gulf nations such as Saudi Arabia, the United Arab Emirates (UAE), and Qatar.
Key Investment Highlights
- Saudi Arabia: Committed to a $600 billion investment package, focusing on defense, energy, and technology sectors. This includes partnerships in artificial intelligence and a significant semiconductor procurement deal involving Nvidia chips.
- United Arab Emirates: Announced $200 billion in new commercial deals and accelerated a previously committed $1.4 trillion investment. A notable project is the establishment of a massive AI data center in Abu Dhabi, developed in collaboration with U.S. tech firms.
- Qatar: Entered into $243.5 billion in commercial and defense agreements, including a $42 billion purchase of U.S. military equipment. Additionally, Qatar Airways placed a record-breaking order for Boeing jets.
Key Legal and Regulatory Considerations for Cross-Border Transactions
Trump’s recent Middle East visit has led to substantial investment commitments aimed at enhancing U.S. economic and strategic positions. Inbound investment from the Middle East into the United States presents significant opportunities for economic growth and collaboration. However, these investments are subject to a complex legal and regulatory framework designed to safeguard national security and ensure compliance with U.S. laws.
1. Committee on Foreign Investment in the United States (CFIUS) Review
CFIUS is an interagency committee authorized to review certain transactions involving foreign investment in the United States to determine their effect on national security. Investments from Middle Eastern entities, particularly those involving critical technologies, infrastructure, or sensitive personal data, may be subject to CFIUS review. In a recent high-profile example, Mubadala Capital (Abu Dhabi state-owned global investment firm and sovereign wealth fund) made a $3 billion acquisition of a majority stake in Fortress Investment Group, and after CFIUS scrutiny, concessions such as data localization and relinquishment of day-to-day control were required to obtain approval for the deal.
2. “America First Investment Policy” and Fast-Track Review
In February 2025, the U.S. administration introduced the “America First Investment Policy,” emphasizing a commitment to a strong, open investment environment while protecting national interests. This policy includes provisions for a fast-track CFIUS review process for investments from allied and partner countries, including those in the Middle East. The initiative aims to streamline the review process by collecting preliminary investor data in advance through a new portal, thereby facilitating faster approvals while maintaining national security standards.
3. Sector-Specific Restrictions and Licensing Requirements
Certain sectors in the U.S. are subject to additional sector-specific restrictions or licensing requirements for foreign investors. Investments in areas deemed critical to national security, such as defense, telecommunications, and energy, may face heightened scrutiny from both CFIUS and sector-specific regulators. Legal counsel is essential to navigate these sector-specific regulations and to ensure compliance with all applicable laws.
4. Mitigation Agreements and Compliance Obligations
To address national security concerns, CFIUS may require foreign investors to enter into mitigation agreements. These agreements can impose various obligations, such as restrictions on access to sensitive information, grants of IP licenses in favor of the U.S. government, governance structures to limit foreign control, and requirements for U.S. citizen staffing in certain positions. Compliance with these agreements is mandatory and subject to ongoing monitoring.
5. Tax Implications and Structuring Considerations
Inbound investments must also consider U.S. tax implications, including federal and state tax obligations. Proper structuring of investments can optimize tax efficiency and ensure compliance with U.S. tax laws. Engaging tax advisors familiar with cross-border transactions is advisable to navigate these complexities.
Strategic Recommendations for Middle Eastern Investors
- Early Engagement with Legal and Regulatory Advisors: Initiate consultations with legal experts experienced in U.S. foreign investment regulations to assess potential CFIUS implications and to develop strategies for compliance.
- Conduct Thorough Due Diligence: Perform comprehensive due diligence on target investments to identify any regulatory, operational, or reputational risks.
- Consider Joint Ventures and Partnerships: Collaborating with U.S. partners can facilitate smoother entry into the market and may alleviate certain regulatory concerns.
- Stay Informed on Policy Developments: Monitor changes in U.S. investment policies and regulations to adapt strategies accordingly.
By proactively addressing these legal and regulatory considerations, Middle Eastern investors can effectively navigate the U.S. investment landscape, capitalize on opportunities, and contribute to mutually beneficial economic growth.
At Carter Ledyard, our MENAT Practice Group leverages extensive regional expertise and a deep understanding of the U.S. regulatory landscape to provide comprehensive legal solutions for companies and individuals with connections to the Middle East, North Africa and Turkey. Our team of seasoned attorneys, including fluent Arabic speakers, is uniquely positioned to advise on and structure inbound investments and cross border transactions and guide clients through complex U.S. legal and regulatory frameworks and compliance issues, including CFIUS reviews, sector-specific licensing requirements, and tax implications.