In a significant move aimed at bolstering bilateral ties, the United States and Saudi Arabia on Tuesday signed a defence agreement valued at nearly $142 billion, the White House confirmed. The signing took place during President Donald Trump’s official visit to Saudi Arabia, at a ceremony held at the Royal Palace, where Trump and Saudi Crown Prince Mohammed bin Salman exchanged documents in a formal signing event.
Key Components of the Agreement:
- Defence Package:
The deal allows Riyadh to purchase advanced American arms, military systems, and defence services, reflecting deepened defence cooperation. - Commercial Deals:
The broader economic engagement totals $600 billion in Saudi investments in the US, according to a White House fact sheet cited by Reuters. Major highlights include:- General Electric (GE): $14.2 billion in gas turbines and energy solutions.
- Boeing: $4.8 billion deal for 737-8 passenger aircraft.
Strategic Significance:
- The agreements are part of a wider effort to modernize Saudi Arabia’s military and diversify its economic partnerships under the Vision 2030 initiative.
- For the US, it represents a substantial boost to American defence and aerospace industries, creating jobs and expanding exports.
Official Statement:
“The agreements reflect a deepening of our commercial and defence cooperation with Saudi Arabia,” the White House stated.
President Trump’s visit underscores Washington’s commitment to Gulf allies and marks one of the largest single defence deals in recent years, reaffirming the longstanding strategic relationship between the two countries.
