Trump Admin Pitching US Companies To Rebuild Gulf Infrastructure Hit By Iran, Arab Officials Say ‘Tone-Deaf’

Via Middle East Eye

The Trump administration has told several Gulf states that they should use American companies to rebuild their infrastructure damaged by Iran’s retaliatory strikes amid the US-Israeli war on the Islamic Republic, US and Arab officials familiar with the discussions told Middle East Eye.

Kuwait, Bahrain and the UAE are among the countries the US has tapped as potential customers for US engineering, manufacturing and construction firms, given the extent of damage in their countries, the officials told MEE.

Saudi Arabia and Oman have been less impacted by Iranian air strikes. In their talking points, US officials have been emphasizing the economic partnership the Gulf countries share with the US and its importance to reconstruction. 

A US official told MEE that promoting US companies for Gulf reconstruction was part of the Trump administration’s “America First” foreign policy, which prioritizes economic statecraft. 

But an Arab official told MEE that the push appeared “a little tone-deaf”, as the Gulf is still wary of a return to fighting and on edge over the US’s commitments to regional security.

The Trump administration’s push is not merely symbolic. Rystad Energy estimates the repair costs for energy-linked infrastructure in the Gulf alone could reach as high as $39bn, excluding the damage in Iran.

A fragile ceasefire between the US and Iran is holding, even as the two are locked in a stalemate over the Strait of Hormuz with rival blockades. Iran’s government has estimated that its economy overall suffered $270bn in direct and indirect war damages.

The Gulf monarchies generally opposed the US-Israeli war on Iran, but they faced the brunt of the Islamic Republic’s reprisals. The UAE was targeted with at least 2,000 ballistic missiles and drones.

The countries which suffered the most damage are also the most exposed to Iran’s newfound control over the Strait of Hormuz, as opposed to Saudi Arabia, which has a pipeline bypassing the chokepoint via the Red Sea. 

Gulf states have deep pockets to rebuild infrastructure, but there are signs they are wary of a longer-term downturn.

Kuwait has one of the world’s largest sovereign wealth funds. Valued at $1 trillion, the fund rivals those of the UAE and Saudi Arabia, although it flies below the radar. 

US Secretary of State Scott Bessent said this week, however, that the UAE and other Gulf states were seeking currency swap lines from the US, which would allow them to tap into US dollars while their energy exports are stalled. 

“I could see the US looking for a trade-off where Gulf states using a swap line commit to US firms for rebuilding,” a former US official told MEE. 

Kuwait, which sits at the northeastern corner of the Gulf, was also hammered by Iranian air strikes. While Kuwait keeps a lower profile than Qatar, the UAE and Saudi Arabia, it has the fourth-largest US troop presence in the world. Iranian strikes hit the US’s Camp Arifjan as well as Ali al-Salem Air Base.

But Reuters reported that Kuwait International Airport also suffered significant damage. At least two major Kuwaiti power and water desalination plants were damaged as well.

Likewise, Bahrain, a tiny Gulf island kingdom whose only land connection to the outside world is the King Fahd Causeway to Saudi Arabia, suffered significant damage from Iranian strikes.

GULF WAR DRIVES $58B REBUILD BILL – STRAINS GLOBAL EQUIPMENT AND SUPPLY CHAINS

The recent conflict across the Gulf is expected to generate a reconstruction burden of roughly $55–60 billion, with damage concentrated in energy infrastructure, logistics corridors, and… pic.twitter.com/wyBiGBuSVN

— THE GLOBAL WATCHDOG (@glwatchdog) April 18, 2026

Bahrain’s port, which hosts the US’s Fifth Fleet, was pummelled by Iran, but key industrial sites also suffered damage.

The Financial Times reported that Amazon’s cloud computing operation in Bahrain was hit by Iranian strikes. Aluminium Bahrain, one of the world’s largest single-site smelters, was attacked and had to declare a force majeure as a result of the damage. Bahrain’s Bapco refinery also declared a force majeure after the strikes.

US and Arab officials said the US has not yet lobbied on behalf of specific companies, but wants to put American firms at the front lines of reconstruction.