The US and Saudi Arabia have signed an almost $142bn defense sales agreement.
This came after US President, Donald Trump arrived in Saudi Arabia to kick off a tour through the Gulf region, focusing on economic deals.
Tesla CEO and Trump adviser Elon Musk, as well as business leaders including BlackRock CEO, Larry Fink and Citigroup CEO Jane Fraser travelled with the US President.
Secretary of state and National Security Adviser, Marco Rubio and US Defence Secretary, Pete Hegseth are also among those on the trip.
The White House called it the “largest defence sales agreement in history.”
It added that the agreement includes providing Saudi Arabia with “state-of-the-art warfighting equipment and services from over a dozen US defence firms.”
In a White House press release, it was disclosed that the arms sales cover five categories: Air force advancement and space capabilities, Air and missile defence, Maritime and coastal security, Border security and land forces modernization, as well as Information and communication systems upgrades.
It added that the package also includes “extensive training and support to build the capacity of the Saudi armed forces, including enhancement of Saudi service academies and military medical services.”
The White House said in a factsheet that the defense deal is part of a $600bn Saudi investment commitment for the US.
The agreement also includes exports of GE gas turbines and energy solutions totaling $14.2bn, and Boeing 737-8 passenger aircraft totaling $4.8bn.
There’s $20bn in Saudi investment in artificial intelligence data centres around the US.
A commitment from US technology firms to invest $80bn in “cutting-edge transformative technologies in both countries.”
President Donald Trump and Saudi Crown Prince Mohammed bin Salman also signed a strategic economic partnership agreement between the two countries in a ceremony at the Royal Palace in Riyadh.
During the exchange of a memorandum of understanding between the two countries, it was announced that the energy aspect relates to cooperation in the field of energy and the mining aspect relates to “cooperation in the field of mining and mineral resources.”
The defense aspect relates to “the modernization and development of the capabilities of the Saudi armed forces through future defense capabilities.”
A letter of intent was also announced to complete work and enhance joint cooperation on ammunition, training, support services, maintenance, system upgrades, spare parts and education for land and air systems of the National Guard and one regarding “the development of the health capabilities of the Saudi armed forces.”
There was also reference to working with the FBI and the Ministry of the Interior.
It also included an agreement between the Saudi space agency and NASA related to a space weathering project, mutual assistance between the customs authorities of the two countries, amending the air transport agreement, cooperation on health research and infectious diseases, and cooperation on conservation.
It is believed that Trump wants to focus on striking financial deals during his Middle East trip, rather than trying to negotiate any major diplomatic agreements.
That’s why he has brought many of America’s top business leaders with him as well as some cabinet members.
However, he will not be able to avoid some of the most difficult global problems as the war in Gaza will inevitably arise in discussions.
Trump To Speak At Saudi-US Investment Forum
Meanwhile, US President is due to speak at the Saudi-US Investment Forum.
The forum is taking place in a conference centre in Riyadh, hosting major Saudi and American investors for talks and meetings.
On the event programme, Donald Trump is listed as giving a “leadership address” alongside Saudi Crown Prince Mohammad bin Salman.
It was said that more signings of agreements and memoranda of understanding will continue later at the US-Saudi Investment Forum.
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