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The policy shift—which began during the first Trump administration—came after lobbying from US drone makers and amid stiff competition from Chinese, Israeli, and Turkish manufacturers.
After years of lobbying from US weapons makers, President Donald Trump is reportedly set to implement his first-term reinterpretation of a Cold War-era arms control treaty in order to sell heavy attack drones to countries including Saudi Arabia, according to a report published Friday.
In July 2020, Trump announced that his administration would reclassify unmanned aerial vehicles (UAVs) with flight speeds under 500 miles per hour—including General Atomics' MQ-1 Predator and MQ-9 Reaper and Northrop Grumman's Global Hawk—as exempt from certain restrictions under the Missile Technology Control Regime (MTCR).
Signed by the United States in 1987 during the administration of President Ronald Reagan, the 35-nation MTCR "seeks to limit the risks of proliferation of weapons of mass destruction by controlling exports of goods and technologies that could make a contribution to delivery systems" for such weapons, as the US State Department website explains.
The end of Trump's first term limited his first administration's implementation of the MTCR policy shift, which was not continued under former President Joe Biden, who adopted a somewhat stricter stance on arms exports to some gross human violators including Saudi Arabia, but not others—most notably Israel.
Now, a US official and four people familiar with the president's plan tell Reuters that Trump is preparing to complete the MTCR revision, a move that "would unlock the sale of more than 100 MQ-9 drones to Saudi Arabia, which the kingdom requested in the spring of this year and could be part of a $142 billion arms deal announced in May."
As Reuters reported:
Under the current interpretation of the MTCR, the sale of many military drones is subject to a "strong presumption of denial" unless a compelling security reason is given and the buyer agrees to use the weapons in strict accordance with international law.
The new policy will allow General Atomics, Kratos, and Anduril, which manufacture large drones, to have their products treated as "Foreign Military Sales" by the State Department, allowing them to be easily sold internationally, according to a US official speaking to Reuters on condition of anonymity.
This effort is the first part of a planned "major" review of the US Foreign Military Sales program, the official said.
The US State Department did not respond to Reuters' request for comment on the policy shift.
Trump's move comes as US arms makers face stiff competition from Chinese, Israeli, and Turkish drone manufacturers. Neither China nor Israel are signatory to the MTCR, and Turkey, which did sign the agreement, features lighter and shorter-range UAVs not subject to the same restrictions as the heavier Reaper.
The US official who spoke to Reuters said the new guidelines will allow the US "to become the premier drone provider instead of ceding that space to Turkey and China."
Daryl Kimball, director of the Arms Control Association—a longtime critic of MTCR revision—warned that Trump's planned reinterpretation "would be a mistake."
Under the proposal, the US would take control after "voluntary" relocation of Palestinians from the strip, where proposed projects include an Elon Musk Smart Manufacturing Zone and Gaza Trump Riviera & Islands.
The White House is "circulating" a plan to transform a substantially depopulated Gaza into US President Donald Trump's vision of a high-tech "Riviera of the Middle East" brimming with private investment and replete with artificial intelligence-powered "smart cities."
That's according a 38-page prospectus for a proposed Gaza Reconstitution, Economic Acceleration, and Transformation (GREAT) Trust obtained by The Washington Post and published in a report on Sunday. Parts of the proposal were previously reported by the Financial Times.
"Gaza can transform into a Mediterranean hub for manufacturing, trade, data, and tourism, benefiting from its strategic location, access to markets... resources, and a young workforce all supported by Israeli tech and [Gulf Cooperation Council] investments," the prospectus states.
However, to journalist Hala Jaber, the plan amounts to "genocide packaged as real estate."
Here comes the Gaza Network State.A plan to turn Gaza into a privately-developed “gleaming tourism resort and high-tech manufacturing and technology hub” with “AI-powered smart cities” and “Trump Riviera” resortgift link:wapo.st/4g2eATo
[image or embed]
— Gil Durán (@gilduran.com) August 31, 2025 at 10:18 AM
The GREAT Trust was drafted by some of the same Israelis behind the controversial Gaza Humanitarian Foundation (GHF), whose aid distribution points in Gaza have been the sites of deliberate massacres and other incidents in which thousands of aid-seeking Palestinians have been killed or wounded.
According to the Post, financial modeling for the GREAT Trust proposal "was done by a team working at the time for the Boston Consulting Group"—which played a key role in creating GHF. BCG told the Post that the firm did not approve work on the trust plan, and that two senior partners who led the financial modeling were subsequently terminated.
The GREAT Trust envisions "a US-led multirlateral custodianship" lasting a decade or longer and leading to "a reformed Palestinian self-governance after Gaza is "demilitarized and de-radicalized."
Josh Paul—a former US State Department official who resigned in October 2023 over the Biden administration's decision to sell more arms to Israel as it waged a war on Gaza increasingly viewed by experts as genocidal—told Democracy Now! last week that Trump's plan for Gaza is "essentially a new form of colonialism, a transition from Israeli colonialism to corporate" colonialism.
The GREAT Trust contains two proposals for Gaza's more than 2 million Palestinians. Under one plan, approximately 75% of Gaza's population would remain in the strip during its transformation. The second proposal involves up to 500,000 Gazans relocating to third countries, 75% of them permanently.
The prospectus does not say how many Palestinians would leave Gaza under the relocation option. Those who choose to permanently relocate to other unspecified countries would each receive $5,000 plus four years of subsidized rent and subsidized food for a year.
The GREAT Trust allocates $6 billion for temporary housing for Palestinians who remain in Gaza and $5 billion for those who relocate.
The proposal projects huge profits for investors—nearly four times the return on investment and annual revenue of $4.5 billion within a decade. The project would be a boon for companies ranging from builders including Saudi bin Laden Group, infrastructure specialists like IKEA, the mercenary firm Academi (formerly Blackwater), US military contractor CACI—which last year was found liable for torturing Iraqis at the notorious Abu Ghraib prison—electric vehicle manufacturer Tesla, tech firms such as Amazon, and hoteliers Mandarin Oriental and IHG Hotels and Resorts.
Central to the plan are 10 "megaprojects," including half a dozen "smart cities," a regional logistics hub to be build over the ruins of the southern city of Rafah, a central highway named after Saudi Crown Prime Mohammed bin Salman—Saudi Arabia and other wealthy Gulf states feature prominently in the proposal as investors—large-scale solar and desalinization plants, a US data safe haven, an "Elon Musk Smart Manufacturing Zone," and "Gaza Trump Riviera & Islands" similar to the Palm Islands in Dubai.
In addition to "massive" financial gains for private US investors, the GREAT Trust lists strategic benefits for the United States that would enable it to "strengthen" its "hold in the east Mediterranean and secure US industry access to $1.3 trillion of rare-earth minerals from the Gulf."
Earlier this year, Trump said the US would "take over" Gaza, American real estate developers would "level it out" and build the "Riviera of the Middle East" atop its ruins after Palestinians—"all of them"—leave Palestine's coastal exclave. The president called for the "voluntary" transfer of Gazans to Egypt and Jordan, both of whose leaders vehemently rejected the plan.
"Voluntary emigration" is widely considered a euphemism for ethnic cleansing, given Palestinians' general unwillingness to leave their homeland.
According to a May survey by the Palestinian Center for Policy and Survey Research, nearly half of Gazans expressed a willingness to apply for Israeli assistance to relocate to other countries. However, many Gazans say they would never leave the strip, where most inhabitants are descendants of survivors of the Nakba, the ethnic cleansing of more than 750,000 Palestinians during the creation of Israel in 1948. Some are actual Nakba survivors.
"I'm staying in a partially destroyed house in Khan Younis now," one Gazan man told the Post. "But we could renovate. I refuse to be made to go to another country, Muslim or not. This is my homeland."
The Post report follows a meeting last Wednesday at the White House, where Trump, senior administration officials, and invited guests including former UK Prime Minister Tony Blair, investor and real estate developer Jared Kushner—who is also the president's son-in-law—and Israeli Minister of Strategic Affairs Ron Dermer discussed Gaza's future.
While Dermer reportedly claimed that Israel does not seek to permanently occupy Gaza, Israeli leaders including Prime Minister Benjamin Netanyahu—who is wanted by the International Criminal Court for alleged crimes against humanity and war crimes including murder and forced starvation in Gaza—have said they will conquer the entire strip and keep at least large parts of it.
"We conquer, cleanse, and stay until Hamas is destroyed," Israeli Finance Minister Bezalel Smotrich recently said. "On the way, we annihilate everything that still remains."
The Israel Knesset also recently hosted a conference called "The Gaza Riviera–from vision to reality" where participants openly discussed the occupation and ethnic cleansing of the strip.
The publication of the GREAT Trust comes as Israeli forces push deeper into Gaza City amid a growing engineered famine that has killed at least hundreds of Palestinians and is starving hundreds of thousands of more. Israel's 696-day assault and siege on Gaza has left at least 233,200 Palestinians dead, wounded, or missing, according to the Gaza Health Ministry—whose casualty figures are seen as a likely undercount by experts.
In supporting the notion of "Greater Israel," the prime minister suggested he supported efforts to expand Israel's borders by conquering large parts of several of its neighboring countries.
Israeli Prime Minister Benjamin Netanyahu is facing condemnation after he endorsed the goal of establishing "Greater Israel."
Many interpreted that as a promise to further expand Israel's borders into other parts of the Arab world.
As the Times of Israel explains:
The term Greater Israel refers to Israel in expanded borders in accordance with biblical or historical descriptions, and has many versions, some of which include parts of today's Jordan, Lebanon, Syria, Egypt, Iraq and Saudi Arabia...
It is still adopted by some far-right figures in Israel who express a desire to annex or eventually control many of those territories.
In an interview Tuesday on Israel's i24 TV network, interviewer Sharon Gal—a former right-wing member of the Knesset—handed Netanyahu an amulet depicting what he said was "the Promised Land."
"This is my vision," said Gal, before asking Netanyahu, "Do you connect to the vision?"
Netanyahu responded, "Very much."
Gal then stressed that the map "is Greater Israel."
"If you ask me, we are here," Netanyahu responded. "You know I often mention my father. My parents' generation had to establish the state. And our generation, my generation, has to guarantee its continued existence. And I see that as a great mission."
Though the pendant itself was not visible onscreen, it was likely the one sold by Gal's company, which the Times of Israel says depicts a "relatively maximalist" map containing territory stretching from the Nile River to the Euphrates—an area encompassing swathes of Egypt, Lebanon, Jordan, Syria, and Iraq.
i24 has cut this provocative exchange from the video of the interview on its Hebrew or English language YouTube channels. However, it can still be viewed on i24's Hebrew-language website.
The idea of colonizing other parts of the Arab world according to historic Jewish texts is popular among the far-right portion of Netanyahu's governing coalition.
Religious Zionist Party leader Bezalel Smotrich, Israel's minister of finance, has said he wants a Jewish State "according to the books of our sages" that will "extend to Damascus," the capital of Syria, and suggested Israel will "slowly" conquer the other side of the Jordan River.
At a conference in March 2023, before Israel's current military assault on the Gaza Strip began, Smotrich spoke at a conference behind a podium depicting a map of "Greater Israel," which encompassed parts of Jordan, Syria, and Saudi Arabia.
Earlier this week, Smotrich unveiled a new 3,000-person settlement in the illegally-occupied West Bank known as E1, which he said "buries the idea of a Palestinian state" because "there is nothing to recognize and no one to recognize."
Netanyahu has long sought to downplay the idea that Israel has waged the destruction of Gaza or its attacks on Syria and Lebanon with the goal of expansion. Even as his government talks openly of permanently exiling the people of Gaza to make room for Jewish settlers, the prime minister has maintained that his goals are purely defensive.
Mustafa Barghouti—the leader of the Palestinian National Initiative, a liberal party in the West Bank's legislature—said Netanyahu's endorsement of "Greater Israel" means "he is on a mission to violate all international laws, commit crimes against humanity, and annex Palestinian and other Arab countries' territories." The Palestinian Authority likewise said Netanyahu's comments were an expression of Israel's "expansionist colonial policies."
That outrage has echoed across the Arab world.
Saudi Arabia expressed its "complete rejection of the settlement and expansionist ideas." Egypt said the remarks had "implications of provoking instability and reflecting a rejection of the pursuit of peace in the region, as well as an insistence on escalation."
Qatar, which has often tried to mediate a ceasefire between Israel and Hamas, called the comments "an extension of the occupation's approach based on arrogance, fueling crises, and conflicts."