In the sprawling geopolitical chessboard of the Middle East, the construction industry finds itself at the nexus of a high-stakes game between the United States and China. The recent tour of Gulf states by former US President Donald Trump underscored this reality, with deals totalling more than US$2 trillion (£1.5 trillion) aimed not just at bolstering the US economy, but also at countering China’s burgeoning influence in the region. Trump’s boast, “there has never been anything like” the amount of jobs and money these agreements will bring to the US, echoes through the corridors of power, signalling a strategic pivot that goes beyond economic gains.
China’s influence in the Middle East has been steadily growing, with significant implications for the construction sector. Over the past two decades, China has methodically built up its economic and political ties with the region. In 2020, it surpassed the EU as the largest trading partner of the Gulf Cooperation Council (GCC), with bilateral trade valued at over US$161 billion (£119 billion). The Middle East has become a critical partner for China’s Belt and Road Initiative (BRI), with massive infrastructure projects like high-speed railway lines in Saudi Arabia providing lucrative opportunities for Chinese companies. The total value of Chinese construction and investment deals in the Middle East reached US$39 billion in 2024, making it the most active region for BRI-related projects.
Trump’s tour was a clear attempt to reassert US influence and contain China’s growing regional ambitions. The string of agreements signed during the trip reflects a deliberate strategy to draw Gulf states back into Washington’s orbit. One of the most significant developments was the agreement to deepen US technological cooperation with the UAE, Saudi Arabia, and Qatar. The US and UAE announced plans to construct the largest AI data centre outside of the US in Abu Dhabi, a move that directly counters China’s “Digital Silk Road” initiative. This initiative aims to develop a global digital ecosystem with China at its centre, and has already seen Chinese firms secure deals to provide 5G mobile network technology and cloud computing services in the region.
The technological cooperation is not just about data centres. American companies, including Amazon, Microsoft, and Google, have been building regional tech ecosystems across the Gulf for years. Trump’s trip saw more than 30 leaders of top American companies secure commercial deals with their Gulf counterparts. For instance, US quantum computing company Quantinuum and Qatari investment firm Al Rabban Capital finalised a joint venture worth up to US$1 billion, focusing on quantum technologies and workforce development. This move is a clear signal that the US is looking to recover momentum in the tech sector, where China has been making significant inroads.
Energy and defence are two other critical areas where the US is trying to limit China’s influence. A US$60 billion energy partnership between American companies and Abu Dhabi’s state-run oil firm underscores Washington’s intention to secure energy resources that China heavily relies on. Nearly half of the oil China uses comes from the Middle East, making this partnership a strategic move to hamper Beijing’s ability to secure the resources it needs. Additionally, defence deals worth billions were signed with Qatar and Saudi Arabia, including a US$1 billion deal for Qatar to acquire drone defence technology and a US$142 billion agreement for Saudi Arabia to buy military equipment from US firms. These moves are aimed at limiting China’s influence in key defence sectors, where it is a significant player in the global market for commercial and military drones.
Trump’s brief meeting with Syria’s interim president Ahmed al-Sharaa also signalled a potential shift in US strategy. The signalled possible sanctions relief, which has since come into effect, constitutes more than a diplomatic thaw. With China positioning itself as a regional mediator and Russia’s role diminished, the US is looking to reassert itself as the primary power broker in the region. This move has significant implications for the construction industry, as infrastructure development often follows political stability and economic investment.
The construction sector in the Middle East is poised to be a battleground for these geopolitical ambitions. As the US and China vie for influence, the region will see a surge in infrastructure projects, technological advancements, and energy developments. For industry professionals, this presents both challenges and opportunities. The need for sustainable and resilient infrastructure will be paramount, as will the integration of cutting-edge technologies that enhance efficiency and reduce environmental impact. The sector will also need to navigate the complexities of geopolitical tensions, ensuring that projects are not only economically viable but also aligned with the strategic interests of the countries involved.
The construction industry must also consider the human element. As cities in the Middle East continue to grow, the focus must be on creating livable, inclusive spaces that prioritize the well-being of residents. This means not just building structures but fost