The Iran war is taking its toll on countries all over the world in a major way. Some are seeing actual missiles being fired at them. Some are seeing huge financial issues due to the war. And then you have the United Arab Emirates (UAE), who have suffered from both! And as a result, President Trump may have a special gift for them with your tax dollars, while you struggle to pay for gas and food. This isn’t exactly MAGA. This is MUAEGA!
So with that, the Trump administration is considering a bailout for the United Arab Emirates over economic losses sustained as a result of the U.S. war with Iran.
The Wall Street Journal has reported that UAE officials are speaking with the White House about providing financial relief, such as a currency swap, if their economy takes an even bigger hit during the war.
A currency swap is a financial arrangement in which two parties (typically central banks or large financial institutions) agree to exchange one country’s currency for another and then reverse the transaction at a later date using a predetermined exchange rate.
This allows each side to access foreign currency liquidity without relying on volatile open markets, helping to stabilize exchange rates and ensure that banks and businesses can continue operating smoothly.
Khaled Mohamed Balama, governor of the UAE’s central bank, raised the issue in meetings with Treasury Secretary Scott Bessent last week. UAE officials reportedly have said their finances are OK for now, but they could need help in the future.
In an interview with CNBC Monday morning, Kevin Hassett, director of the National Economic Council, said that if the Strait of Hormuz remains closed and continues to hurt the UAE’s economy, the Trump administration would be willing to provide help.
“The UAE has been an incredibly valuable ally throughout this effort, and I am sure that the treasury secretary will make every effort to help them out should that be necessary,” Hassett said.
Now, while all that may be true, it is important for the UAE to get back on track. But, giving away American tax dollars doesn’t exactly seem fair or prudent to the American people. So you are probably asking yourself why? Why is President Trump making this the country at the top of the list for a “bailout”
Well, President Trump and his family have extensive business ties with the UAE. His son-in-law, Jared Kushner, pocketed $200 million from the UAE’s sovereign wealth fund for his investment firm, Affinity Partners, in 2023. The next year, Kushner’s firm secured $1.5 billion from Abu Dhabi-based firm Lunate as well as Qatar’s sovereign wealth fund.
In addition to Kushner, the UAE invested $2 billion into World Liberty Financial, the cryptocurrency venture run by Trump’s sons Eric and Donald Jr. And interestingly enough, Trump happened to lift export restrictions on computer chips at the same time. On a side real estate note, The Trump Organization is also building a luxury hotel in Dubai called the Trump International Hotel Tower.
It’s interesting that administration officials are quick to say they would help out the UAE when other countries that have been hurt economically by the war and the Strait of Hormuz’s closure have been told that they’re on their own. It seems that Trump is willing to help out those with whom he is making serious bank with. And there lies the problem. This is a perfect example of the insider dealings that go on while Americans are left out in the cold.
