In a landmark agreement, the United States and Saudi Arabia have finalize and signed a defense deal valued at nearly $142 billion, marking one of the largest arms sales in history. The accord was finalized during former U.S. President Donald Trump’s official visit to Riyadh, underscoring the deepening strategic and economic ties between the two nations.
The White House described the deal as a significant milestone, stating, “The United States and Saudi Arabia signed the largest defense sales agreement in history—nearly $142 billion, providing Saudi Arabia with state-of-the-art warfighting equipment.” The comprehensive package includes advanced military systems, arms, and services, aiming to bolster Saudi Arabia’s defense capabilities amid regional tensions.
This agreement is part of a broader $600 billion investment initiative between the U.S. and Saudi Arabia, encompassing sectors such as defense, artificial intelligence, and economic cooperation. Notably, Saudi Arabia’s state-owned AI company, Humain, plans substantial investments in AI infrastructure, including significant purchases of Nvidia AI chips, with additional commitments from AMD and Amazon.
The defense component of the deal that was finalize includes the provision of advanced weaponry and training services. In early May, the U.S. approved the potential sale of $3.3 billion worth of air-to-air missiles to Saudi Arabia, comprising 1,000 AIM-120C-8 advanced medium-range missiles, guidance systems, and technical support, manufactured by RTX Corp of Tucson, Arizona.
President Trump’s visit to the Middle East, which includes planned stops in Qatar and the UAE, is primarily focused on economic issues. He aims to secure additional major deals to increase investment from wealthy Gulf countries into the American economy. Saudi Arabia has already announced plans to invest $600 billion in the U.S. over the next four years, with Trump expressing hopes that this figure could rise to $1 trillion.
The arms deal is also seen as a strategic move to counterbalance Iran’s influence in the region. Analysts suggest that the agreement will enhance Saudi Arabia’s military capabilities, thereby contributing to regional stability and reducing the burden on U.S. military operations in the Gulf.
While the deal has been lauded for its potential to strengthen U.S.-Saudi relations and stimulate economic growth, it has also faced criticism. Concerns have been raised regarding the human rights record of Saudi Arabia and the potential implications of increased arms sales in a volatile region. Nevertheless, the agreement signifies a pivotal moment in U.S. foreign policy and defense strategy in the Middle East.
