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In a landmark move, the United States has agreed to sell Saudi Arabia an arms package valued at nearly $142 billion — the largest “defence cooperation agreement” in U.S. history, according to the White House.
President Donald Trump announced the deal as he began his visit to the Gulf on Tuesday. He also revealed a surprise $600 billion investment commitment from Saudi Arabia to the U.S. economy. The agreement, signed by Trump and Saudi Crown Prince Mohammed bin Salman, spans multiple sectors, including defence, energy, mining, and infrastructure.
The arms deal encompasses contracts with more than a dozen American defence firms. It includes capabilities in air and missile defence, aerospace and space systems, maritime security, and advanced communications, a White House fact sheet said. It was not immediately clear whether Lockheed Martin’s F-35 fighter jets were part of the package, though sources suggest they have been under discussion.
Crown Prince Mohammed indicated the total value of the agreements could eventually reach $1 trillion, as further deals are expected in the coming months.
Saudi Arabia has long been one of the largest buyers of U.S. military equipment. The relationship is underpinned by an informal arrangement in which the kingdom ensures oil stability in exchange for American security guarantees.
Following his visit to Riyadh, Trump is scheduled to travel to Qatar on Wednesday and the United Arab Emirates on Thursday. While security remains a backdrop, the focus of the trip is heavily tilted toward boosting economic ties and investment across the region.
The announcement was made at a high-profile investor event attended by leading American business figures, including Tesla CEO Elon Musk, OpenAI CEO Sam Altman, BlackRock CEO Larry Fink, and Blackstone CEO Stephen Schwarzman.
Trump was seen engaging with key Saudi officials, including sovereign wealth fund governor Yasir Al-Rumayyan, Aramco CEO Amin Nasser, and Investment Minister Khalid Al-Falih, as he viewed detailed models of the kingdom’s ambitious development initiatives.
The Saudi leadership has been spearheading a sweeping economic reform agenda known as Vision 2030, aimed at reducing the country’s dependence on oil. Signature “Giga-projects” such as NEOM — a planned futuristic city roughly the size of Belgium — are central to the vision. Despite its ambitions, the kingdom has been forced to scale back some projects in the face of rising costs and fluctuating oil revenues. Oil still accounted for 62% of Saudi government revenue last year.
Team BharatShakti
