The Trump administration is working on a plan to establish a $10 billion fund to rebuild infrastructure in the Middle East affected by the war with Iran.
According to reports from the Wall Street Journal and other foreign media on September 21, the U.S. plans to contribute $5 billion and is requesting the same amount from eight Middle Eastern countries, including Saudi Arabia, the United Arab Emirates (UAE), Qatar, Bahrain, Kuwait, Oman, Iraq, and Jordan.
The initiative, led by the U.S. International Development Finance Corporation (DFC), aims to create a "Partnership for Allied Trust and Construction" to promote investment, reconstruction, and economic growth in the region.
While the implementation of this plan remains uncertain, it appears to be an effort to reassure regional allies concerned about U.S. Middle East policy following the war.
Since the conflict began in late February, Iran has retaliated against U.S. and Israeli attacks with missiles and drones, causing significant damage to numerous oil facilities and natural gas export terminals in the region. Energy experts estimate that hundreds of billions of dollars will be needed to restore the region's energy infrastructure.
Priority projects for the fund include investments in logistics and energy infrastructure to bypass the Hormuz Strait, restoration of energy supply and key raw material export networks, strengthening protection for major facilities against future attacks, and rebuilding essential infrastructure and import logistics networks in each country.
Potential investment targets include Saudi Arabia's expansion of the "Hormuz Bypass" project, the expansion of Duqm Port in Oman, and the restoration of aluminum smelting and refining facilities in the UAE and Bahrain.
However, several variables remain before this plan can be realized. There is a risk that restored energy facilities could be attacked again without a comprehensive peace agreement with Iran, and differing levels of dependence on the Hormuz Strait among countries may lead to conflicting interests.
Meanwhile, the war has shaken trust in U.S. security guarantees, prompting Gulf nations such as the UAE, Qatar, and Saudi Arabia to explore a new regional security order that includes Iran.
According to the Financial Times, Qatar and the UAE have recently emphasized dialogue and mutual non-aggression with Iran, while Saudi Arabia is discussing a non-aggression pact between Middle Eastern countries and Iran. This shift is seen as an effort to reduce dependence on U.S. security and allow regional nations to establish their own security arrangements.
* This article has been translated by AI.
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