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The Two Billion Dollar Alliance: Inside the Secret Diplomacy and Wealth of Jared Kushner and MBS

In late May 2017, Donald Trump chose Riyadh, Saudi Arabia, as the destination for his first foreign trip as President of the United States. Rather than landing in London, Tokyo, or Ottawa, the newly inaugurated American administration touched down in the desert kingdom, greeted by ceremonial flypasts, lavish banquets, and a glowing orb that quickly captured global attention. Behind this sharp pivot in American foreign policy was a quiet, unvetted channel of communication between two young, ambitious men operating outside the guardrails of traditional statecraft: 36-year-old presidential son-in-law Jared Kushner and 31-year-old Deputy Crown Prince Mohammed bin Salman, universally known as MBS.

Over the next decade, their relationship would bypass career diplomats, navigate international crises, reshape Middle Eastern geopolitics, and culminate in a headline-grabbing $2 billion private equity deal. What began as an informal backchannel evolved into one of the most consequential, scrutinized, and financially rewarding alliances in modern international diplomacy.

The Architecture of the Shadow Channel

When Donald Trump entered the White House, he handed Kushner an expansive, high-stakes portfolio that included negotiating peace in the Middle East. Kushner possessed no prior diplomatic experience; his professional background lay in Manhattan real estate development and publishing. Yet, he saw an ideological mirror in Mohammed bin Salman, who was maneuvering ruthlessly within the House of Saud to consolidate control over military, security, and economic levers.

From the outset, Kushner chose not to rely on the seasoned Middle East hands at the State Department, the National Security Council, or the Central Intelligence Agency. Instead, he and MBS established direct, personal lines of communication. The two men communicated regularly via encrypted WhatsApp messaging, private cell phones, and unlogged midnight calls.

Senior career diplomats and intelligence officials found themselves sidelined. When Kushner made unannounced, low-profile trips to Riyadh—including an intense late-night strategy summit in the autumn of 2017—U.S. embassy staff were routinely excluded from meetings. Within the Kingdom, MBS soon launched a sweeping purge under the guise of an anti-corruption sweep at the Ritz-Carlton, arresting hundreds of royal rivals, ministers, and billionaires. The purge effectively neutralized any internal resistance to his ascent, and Washington offered no official rebuke.

Loyalty Under Pressure: The Khashoggi Fallout

The resilience of the Kushner-MBS alliance faced its ultimate test on October 2, 2018, when Saudi dissident and Washington Post columnist Jamal Khashoggi entered the Saudi consulate in Istanbul, Turkey, to obtain marriage documents. He never walked out. Khashoggi was murdered and dismembered by a 15-member team of Saudi agents closely tied to the crown prince’s inner circle.

Global outrage was immediate and severe. Western business leaders canceled their attendance at Saudi Arabia’s flagship investment summit, European nations suspended arms sales, and bipartisan voices in the United States Congress demanded punitive measures. A subsequent declassified U.S. intelligence assessment concluded that Mohammed bin Salman had directly approved the operation.

Behind closed doors in Washington, Kushner became MBS’s primary shock absorber. He consistently counseled President Trump to resist domestic and international pressure, arguing that Riyadh was an indispensable regional counterweight to Iran, a vital oil partner, and the lynchpin for a broader Middle East peace framework. By framing the crisis as a transactional bump in the road rather than a systemic rupture, Kushner shielded the crown prince from severe American retribution, preserving their bilateral relationship intact.

The geopolitical dividend arrived in late 2020 with the Abraham Accords. Brokered under Kushner’s stewardship, the accords formally normalized diplomatic relations between Israel and four Arab states: the United Arab Emirates, Bahrain, Sudan, and Morocco. While Saudi Arabia stopped short of formal recognition, MBS’s tacit endorsement and the opening of Saudi airspace to commercial Israeli flights signaled that Riyadh was working hand-in-hand with Kushner’s vision for the region.

The Capital Call: Affinity Partners

On January 20, 2021, the Trump administration ended, and Jared Kushner vacated his West Wing office. Six months later, he incorporated Affinity Partners, a private equity firm based in Miami. Despite Kushner having virtually no prior institutional track record in private equity fund management, money began pouring into the fund from the Gulf.

The centerpiece came directly from Riyadh: a staggering $2 billion investment commitment from the Saudi Public Investment Fund (PIF), chaired personally by Mohammed bin Salman.

The circumstances surrounding the transaction raised immediate concerns. Internal PIF panel documents later reviewed by congressional investigators revealed that the sovereign wealth fund’s own screening committee had strongly advised against investing in Affinity Partners. The screening committee cited multiple red flags: Kushner’s complete lack of private equity experience, “unsatisfactory” due diligence results, an excessive management fee structure, and significant public relations liabilities.

Despite these clear internal warnings, the full PIF governing board—chaired directly by MBS—overruled the committee and approved the full $2 billion transfer. Combined with hundreds of millions committed by sovereign vehicles in the UAE and Qatar, Gulf sovereign funds accounted for nearly 99% of Affinity’s capital base. The arrangement guaranteed Kushner’s firm tens of millions of dollars in annual baseline management fees, irrespective of how well the investments actually performed.

Congressional Scrutiny and Lasting Precedents

The scale and timing of the $2 billion infusion triggered extensive inquiries by the Senate Finance Committee and House oversight panels. Critics and ethics watchdogs argued that the transfer represented an egregious example of the “revolving door,” questioning whether the funds constituted deferred compensation for favorable White House policies during the Khashoggi crisis, or forward-looking insurance designed to secure influence ahead of future American electoral cycles. Kushner and representatives of Affinity Partners rejected these claims, maintaining that the firm had operated under strict ethical parameters and followed standard market practices.

Beyond ethical debates, Affinity Partners began deploying its Saudi-backed capital in ways that quietly advanced MBS’s regional strategy. A portion of the funds was invested in Israeli-founded tech firms and financial platforms, marking the first time Saudi sovereign capital was knowingly channeled into Israeli enterprises—an informal, covert economic integration achieved without the domestic friction of a formal diplomatic treaty.

The alliance between Jared Kushner and Mohammed bin Salman established a modern blueprint for how personal relationships can supersede institutional foreign policy. By trading institutional channels for private rapport, and statecraft for high-finance vehicle management, the two men fundamentally altered the landscape of U.S.–Gulf engagement, leaving behind a legacy where geopolitical favors and private wealth remain inextricably linked.

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