Trump Embraces $50 Billion Investment, but Is It Worth the Saudi Ties?
As camera lights flashed, President-elect Donald J. Trump strode across the lobby of Trump Tower with Masayoshi Son, the colorful Japanese entrepreneur, in December.
“This is Masa of SoftBank from Japan,” Mr. Trump said before boasting that Mr. Son’s SoftBank — which is in the process of amassing a giant $100 billion fund — had pledged to invest $50 billion in the United States and would create 50,000 jobs here.
“He’s one of the great men of industry, so I just want to thank you very much,” he told Mr. Son, who was an early investor in Yahoo and Alibaba. Just last month he bought the Wall Street firm Fortress Investment Group for $3 billion.
The photo op was intended to be part of Mr. Trump’s “America First” campaign.
Yet unmentioned that day — and largely unremarked upon — is that Mr. Son’s $100 billion SoftBank Vision Fund could reasonably be described as a front for Saudi Arabia and perhaps other countries in the Middle East.
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Saudi Arabia is the majority investor in the fund, with some $45 billion pledged. A state-owned investment company from Abu Dhabi, Mubadala Development, is in negotiations to invest $15 billion as well. Qatar is also in talks to invest in the fund.
This is not a secret to anyone who has been paying even a modicum of attention to the news that has dribbled out about the fund.
While Mr. Son has pledged to provide a quarter of the fund himself, hardly any of the money comes from investors in the United States — with the exception of several nominal $1 billion investments, including from Apple, Qualcomm and Larry Ellison of Oracle.
Mr. Trump’s embrace of Mr. Son, and therefore Saudi Arabia, to take over some of Silicon Valley’s most promising companies and intellectual property could be seen as being at odds with his nationalistic talk.
“Would you take money from the Saudis?” Sean Hannity of Fox News asked him last year.
“No,” Mr. Trump replied, without missing a beat.
On the campaign trail, Mr. Trump criticized Hillary Clinton’s ties to Riyadh. “Crooked Hillary says we must call on Saudi Arabia and other countries to stop funding hate,” Mr. Trump wrote on Facebook. “I am calling on her to immediately return the $25 million plus she got from them for the Clinton Foundation!”
Those references were made in the context of politics, but should they also extend to business?
This column isn’t taking a position on the politics or the morality of taking money from Saudi Arabia. But it is a conversation that is worth having.
Just as the United States has tried to become energy independent from the Middle East for economic and political reasons, we may be on the verge of taking the opposite tack when it comes to our innovative start-ups.
While Mr. Trump wants to stimulate foreign investment in the United States, he has also talked tough about the Middle East and terrorism. Fifteen of the 19 hijackers involved in the Sept. 11, 2001, attacks were citizens of Saudi Arabia.
In true Trumpian style, he has made somewhat contradictory statements about Saudi Arabia: “Saudi Arabia — and I get along great with all of them. They buy apartments from me,” Mr. Trump said at a campaign stop. “They spend $40 million, $50 million. Am I supposed to dislike them? I like them very much.”