9 months ago
Trump Organization in Talks for Saudi Real Estate Deal
Imagine a famous family that has a well-known name, like a brand.
They have a business that is all about building and owning cool places like hotels and apartments.
This business is talking to a big company in Saudi Arabia, a country in the Middle East, about putting their name on a new, fancy development there.
This is like lending their name to a big project, and in return, they get paid.
The person in charge of this big project in Saudi Arabia, who is also like a prince, is friends with the leader of the United States.
This prince is coming to visit the U.S. soon.
Some people think it's a bit strange when a leader's family business talks to foreign governments, because it might seem like they could get special treatment.
But in some countries, like Saudi Arabia, it's more common for leaders and their families to do business with their government.
The family's business has done this before in other countries near Saudi Arabia, partnering with a company that helps them connect with these governments.
The Trump Organization is in discussions for a potential real estate deal involving a Trump-branded property in Saudi Arabia's Diriyah development.
Jerry Inzerillo, CEO of the Diriyah development, stated that a deal is expected 'soon to be' and that negotiations are underway.
The Trump Organization has a history of international licensing deals, particularly in Persian Gulf countries, generating significant revenue through its brand name.
Saudi Crown Prince Mohammed bin Salman, overseeing the $63 billion Diriyah project, is scheduled to visit Washington, where he will meet with President Trump.
Concerns exist regarding the potential blending of President Trump's family business interests with his governance, although such practices are described as ordinary in the Persian Gulf.
- Who
- The Trump Organization and Saudi company Dar Global, in potential partnership with Saudi government-owned real estate developments.
- What
- The Trump Organization is reportedly in talks for a real estate deal involving a Trump-branded property in Saudi Arabia, specifically within the Diriyah development project.
- Where
- Diriyah, a historic Saudi town being transformed into a luxury destination, and potentially other Saudi projects and locations in the Persian Gulf.
- When
- The talks are ongoing, with potential announcements 'soon to be,' and Crown Prince Mohammed bin Salman is expected to visit Washington in the coming week.
- Why
- This potential deal exemplifies the Trump family's strategy of leveraging the Trump name for licensing fees in lucrative international real estate ventures, particularly in the Persian Gulf, where business and governance are often intertwined.
Concerns about Blending Business and Governance
Normal Practice in Persian Gulf
Conflict of Interest
Concerns about Blending Business and Governance
The intertwining of President Trump's family business dealings with his diplomatic engagements, particularly with Saudi Arabia's Crown Prince Mohammed bin Salman, raises concerns about potential conflicts of interest, as American norms are challenged.
Normal Practice in Persian Gulf
In the Persian Gulf, where hereditary ruling families hold significant power, the concept of a conflict of interest carries less weight, and such blending of business and politics is considered ordinary.
Transparency of Deals
Concerns about Blending Business and Governance
The opacity of the Trump Organization's licensing agreements makes it difficult to ascertain the exact terms and potential financial benefits, including how much money goes directly to the President.
Normal Practice in Persian Gulf
Licensing deals are a lucrative business model where a company is paid for the use of its name without necessarily investing in the project itself, a common practice for the Trump Organization.
Key facts
- Potential Deal Location
- Diriyah, Saudi Arabia
- Project CEO
- Jerry Inzerillo
- Key Business Partner
- Dar Global
- Saudi Crown Prince
- Mohammed bin Salman
- Diriyah Project Scale
- $63 billion
- Dar Global's 2023 License Fees
- $21.9 million
Quotes
Jerry Inzerillo
CEO of the Diriyah development and a longtime friend of Trump
“You’re right, you normally wouldn’t do that in a state dinner. It’s not really the normal protocol. But that’s because you’re looking at the president of the United States as the president of the United States. You’re not looking at him as a developer.”
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“It turned out to be a good stroke of luck and maybe a little bit clever of us to say, ‘OK, let’s appeal to him as a developer’ — and he loved it.”
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Donald Trump
President Donald Trump
“an exhilarating period”
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“Over the past eight years, Saudi Arabia has proved the critics totally wrong”
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Ziad El Chaar
CEO of Dar Global
“We launched with a partnership with the esteemed Trump Organization that immediately put the project on the global map.”
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“You will see us announcing more collaborations with the giga-projects.”
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Eric Trump
Son of President Trump, overseeing the family business
“every developer’s biggest playground”
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Donald Trump Jr.
President Trump's son
“My whole life I was a real estate guy, I did deals all over the world. Jerry, you know that all too well. In my world, it’s hard to not bring everything back to real estate.”
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