The Trump Organization has signed a new agreement with a Saudi real estate company to build a high-rise residential tower in the city of Jeddah, further strengthening the Trump family’s close ties to the Saudi kingdom.
As new real estate transactions in the United States have slowed or stopped since the Jan. 6, 2021, attack on the Capitol and former President Donald J. Trump’s departure from the White House, Saudi Arabia has become one of the few reliable sources of growth for the Trump family’s business operations.
The new deal is similar to other international projects signed by the Trump family over the past decade. It lends the family’s name and brand to a deep-pocketed developer who will build the project and sell luxury residential units, hoping to sell them at a premium based on the market value of the former president’s star power. Resorts in Oman and Saudi-backed golf tournament Trump’s course in recent years.
“We are excited to strengthen our ongoing partnership with the Trump Organization and expand our portfolio by delivering premium properties that redefine Saudi Arabia’s high-growth real estate market,” Ziad El Chaar, CEO of real estate company Dar Global, said in a statement on Monday.
Mr El Chaar said the target market is international investors and holidaymakers who want to buy property in Jeddah.
London-based Dar Global, a subsidiary of Dar Al Arkan, one of Saudi Arabia’s largest private real estate companies, has a growing portfolio of luxury residential projects around the world, often partnering with high-profile brands such as Dolce & Gabbana and Lamborghini to attract deep-pocketed buyers.
Before Trump was elected president in 2016, his organization had planned to build a tower in the Middle East, but that deal and other development plans were shelved after Trump’s election and his family pledged not to sign new international agreements while he was in the White House.
These brand deals have become a major new source of income for the Trump family, as the Trump Organization typically receives millions of dollars in compensation after signing the deal and then takes a cut of the sales of the luxury apartments or condos.
“We are excited to expand our influence in the Middle East,” Eric Trump said in a statement Monday.
The Oman project includes a Trump-branded golf course and hotel and Trump Villas, which was built by Dar Global on land owned by the Omani government and located on a cliff overlooking the Gulf of Oman. At least $5 millionFinancial disclosure documents show the project was already underway before construction began last year.
Last year, a team of sales agents helped sell luxury villas worth up to $13 million on behalf of Trump, targeting ultra-rich buyers from around the world. Including from RussiaIran and India.
Another major new source of income for the Trumps is LIV Golf, a professional golf league backed by the Saudi sovereign wealth fund. The fund paid the Trumps to host a tournament at Trump National Doral Golf Club near Miami. Earlier this year.
Trump’s two eldest sons, Eric and Donald Jr., have expressed dissatisfaction with Trump’s previous promises not to make new international deals, and it is unclear whether they will continue to seek new international deals if Trump returns to the White House.
Saudi sovereign wealth fund Major Investors Trump’s son-in-law, Jared Kushner, founded the investment firm after resigning as a White House adviser.
The deals have raised allegations of conflicts of interest, particularly those directly involving foreign government entities, because foreign players could offer special terms to the Trump family in exchange for possible favorable treatment if Trump returns to power.
“It would be a serious conflict of interest if he’s re-elected president,” said Robert Weissman, president of Citizens for Public Interest, a research group that has tracked the family’s business dealings during Trump’s time in office.
While Dar Al Arkan is technically a private company, listed on the Saudi stock exchange, it relies in part on Saudi government contracts to stay in business.
Vivian Nerrim Contributed reporting.
