Trump floats taxpayer bailout for Middle Eastern autocracy

On Tuesday, President Trump said he is considering a financial bailout for the United Arab Emirates (UAE), an autocratic state experiencing an economic downturn due to the war in Iran. If the Trump administration does use public resources to rescue the UAE, it will be assisting a country that has partnered extensively with the Trump Organization and the Trump family.

On Sunday, the Wall Street Journal reported that UAE Central Bank Governor Khaled Mohamed Balama “raised the idea of a currency-swap line” during meetings in Washington, D.C., last week with Treasury Department and Federal Reserve officials, including Treasury Secretary Scott Bessent. Officials from the UAE said that they “had so far avoided the worst economic effects of the conflict but might still need a financial lifeline.” According to the Journal, a formal request has not yet been made.

UAE officials argued that the war between the U.S. and Iran could damage the country’s economy and harm its global financial standing. The war has already damaged the country’s oil and gas infrastructure, and Iran’s closure of the Strait of Hormuz has cut off oil shipments that are a key source of dollar revenue.

If the U.S. agreed to the UAE’s proposal for a currency-swap line, the UAE central bank would get “inexpensive access to dollars to support its currency or shore up its foreign reserves in case of a liquidity crisis.” While swap lines are usually offered by the Federal Reserve, officials told the Journal that it is unlikely that one would be approved for the UAE. But the Trump administration has also provided financial bailouts through the Treasury Department.

In September, for example, Bessent announced a $20 billion swap line to bail out Argentina. That bailout benefited billionaire hedge fund manager Rob Citrone, a former colleague and close friend of Bessent.

Bailouts are typically reserved for countries with deep economic ties to the U.S. to avoid adverse consequences for the American economy. But the UAE is not a major trading partner of the U.S. In 2024, the goods and services trade between the U.S. and the UAE “totaled an estimated $47.9 billion.” In comparison, trade between the U.S. and Canada totaled $909 billion, and trade with the U.K. was $340.1 billion.

Nevertheless, Trump administration officials appear to be open to the idea. On Monday, National Economic Council Director Kevin Hassett, one of Trump’s top economic advisors, was asked about the potential bailout during an interview with CNBC. “The UAE has been an incredibly valuable ally throughout this effort, and I’m sure the Treasury Secretary will make every effort to help them out should that be necessary,” Hassett said, noting that he had not talked to Bessent directly.

The UAE has not been that helpful. For example, in January 2026, the UAE announced that it will not allow “its airspace, territory or territorial waters be used for any hostile military actions against Iran.”

On Tuesday, Trump also indicated that he was open to the proposal during an interview with CNBC. Trump was asked if a currency swap with the UAE was under consideration. “It is,” Trump responded. “It’s been a good country, it’s been a good ally of ours. And you know these are unusual times,” Trump said, noting that the UAE has been targeted particularly hard by Iranian missiles. “They’re very good for this country, so yeah, if I could help them I would.”

The UAE’s business ties with Trump

Since retaking office, Trump and his family have benefited greatly from deals with UAE officials and businessmen.

Just days before Trump was inaugurated in 2025, for example, Emirati royal Sheikh Tahnoon bin Zayed Al Nahyan secretly purchased a 49% stake in the Trump family’s cryptocurrency firm, World Liberty Financial. Half of the sale was paid up front, resulting in a windfall of $187 million for entities tied to the Trump family. An additional $31 million went to the family of Steve Witkoff, who is a World Liberty Financial co-founder and Trump’s envoy to the Middle East. Witkoff has been involved in negotiations with Iran throughout the war. It is unclear how much the two families will make from the second half of the payment.

Five months after Tahnoon bought into the company, MGX — a state-backed UAE investment fund chaired by Tahnoon — used $2 billion worth of USD1, a stablecoin issued by World Liberty Financial, to finance an investment in the crypto exchange Binance. The deal will generate hundreds of millions of dollars for Trump and his family members.

Two weeks after the USD1 purchase, the Trump administration made a deal to give the UAE hundreds of thousands of advanced computer chips that the country had been seeking for years. According to the New York Times, Tahnoon secured this agreement, and many of the chips went to G42, a tech firm under his control.

The Trump family has brought in additional millions by licensing the Trump name to a golf course and a real estate development in the UAE. The golf course, which opened shortly after Trump was inaugurated for the first time in 2017, was built outside Dubai by developer DAMAC, which reportedly pays the Trump Organization $6 million per year to use the Trump name. The Trump Organization signed a similar licensing agreement with developer Dar Global in April 2025 to construct a Trump-branded hotel and residential building in Dubai.

Trump’s son-in-law, Jared Kushner, who Trump has placed in a top diplomatic role, has also profited from investments from the UAE. In 2021, Kushner’s private equity firm Affinity Partners received a $200 million investment from the UAE’s sovereign wealth fund and another $1.5 billion from entities controlled by the Qatari and Emirati governments in late 2024. Exactly how much of the $1.5 billion came from the UAE is undisclosed.