- Trump advisers suggest reforms
- Saudi Arabia has $127bn of the bonds
- No concrete proposals yet
Economic advisers to President Donald Trump have proposed radical policies that could dim the allure of US government bonds for Gulf sovereign investors.
The bonds, commonly known as treasuries, are considered among the lowest-risk investments. Many countries with excess dollars – from trade surpluses with the US or the sale of dollar-denominated goods such as oil – buy vast amounts of the instruments.
As of January 2025 Saudi Arabia held $126.9 billion of US treasuries, the UAE owned $92.6 billion and Kuwait had $49.2 billion.
These dollarised IOUs, on which the US pays interest but rolls over rather than repays, have enabled Washington to raise its public debt to $36 trillion, up sixfold this century.
Debt interest payments were $74 billion in February alone and the Trump administration is mulling ways to…
