US and Saudi Arabia Finalize Record $142 Billion Arms Agreement After Trump’s Riyadh Trip
According to the White House, the defence pact is valued at nearly $142 billion, providing Saudi Arabia with cutting-edge warfighting equipment and support. The package spans five key sectors:
Riyadh: In a landmark development aimed at cementing strategic ties, the United States and Saudi Arabia have signed what the White House described as the “largest defence sales agreement in history,” alongside a sweeping $600 billion investment commitment by the Kingdom during former President Donald Trump’s visit to Riyadh.
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$142 Billion Arms Deal Signed
According to the White House, the defence pact is valued at nearly $142 billion, providing Saudi Arabia with cutting-edge warfighting equipment and support. The package spans five key sectors:
- Air force advancement and space capabilities
- Air and missile defence
- Maritime and coastal security
- Border security and land forces modernisation
- Information and communication systems upgrades
The deal also includes extensive training programs to enhance the capabilities of the Saudi military, including improvements to service academies and military medical services. “This is a major investment in regional security and defence cooperation, built on American systems and training,” said a White House official.
$600 Billion Investment Commitment by Riyadh
In addition to the arms agreement, Saudi Arabia committed to investing $600 billion in the US, aimed at bolstering ties in energy security, defence industries, AI, and critical minerals.
Highlights of the investment deals include:
- DataVolt’s $20 billion investment in artificial intelligence infrastructure in the US
- Shamekh IV Solutions’ $5.8 million facility in Michigan to manufacture high-capacity IV fluids
- $80 billion joint investment by tech giants like Google, Oracle, Salesforce, AMD, and Uber in transformative technologies across both nations
US infrastructure firms such as Hill International, Jacobs, AECOM, and Parsons are also involved in key Saudi projects, including King Salman International Airport, The Vault, King Salman Park, and Qiddiya City, amounting to $2 billion in US service exports.
Trump Meets Crown Prince Mohammed bin Salman
Trump, accompanied by several high-profile business leaders including Elon Musk, praised the deepening ties with Saudi Arabia, stating during his meeting with Crown Prince Mohammed bin Salman, “I really believe we like each other a lot.”
Though Trump is visiting Qatar and the UAE next, his itinerary notably omits Israel amidst continuing tensions between Tel Aviv and Riyadh.
Growing Bilateral Trade Ties
Saudi Arabia remains one of the United States’ largest trading partners in the Middle East. In 2024, bilateral trade in goods totalled $25.9 billion, with US exports at $13.2 billion and imports at $12.7 billion, resulting in a trade surplus of $443 million for the US.
The series of agreements represents a massive strategic and economic collaboration, set to redefine US-Saudi relations in the coming decade.
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