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Home Foreign News

Trump, Saudi Crown Prince seal landmark $142bn Defense and Investment Pact

Sheila Satori Mensa by Sheila Satori Mensa
May 15, 2025
in Foreign News, General, Lead story, News, Top Stories
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Trump, Saudi Crown Prince seal landmark $142bn Defense and Investment Pact
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U.S. President Donald Trump and Saudi Arabia’s Crown Prince Mohammed bin Salman have finalized a sweeping $142 billion defense and investment agreement aimed at deepening strategic ties between Washington and Riyadh.

The deal, announced during Trump’s diplomatic visit to the Middle East, includes what the White House has described as the “largest defense sales agreement in history.” Under the agreement, the U.S. will supply Saudi Arabia with cutting-edge military equipment and support services, while the Kingdom will inject billions into the American economy through investments in artificial intelligence and infrastructure.

According to a statement released by the White House, the defense portion of the agreement spans five key areas: air force modernization and space operations, air and missile defense systems, coastal and maritime security, land border enforcement and modernization of ground forces, as well as advanced information and communication systems.

In addition to military hardware, the agreement includes robust training programs and logistical support designed to bolster the capabilities of the Saudi armed forces. These will include upgrades to military medical services and service academies across the Kingdom.

During a high-profile luncheon in Riyadh attended by tech magnate Elon Musk and other top business executives, further economic arrangements were unveiled.

Saudi Arabia committed to a $600 billion long-term investment plan in the United States, which includes a $20 billion injection into artificial intelligence infrastructure—specifically, the construction of data centers across the U.S.

U.S. companies, in turn, pledged $80 billion in investments aimed at fostering transformative technologies in both countries. Additional commercial agreements include $14.2 billion worth of U.S. exports in gas turbines and energy solutions, as well as $4.8 billion in Boeing 737-8 aircraft sales to Saudi carriers.

The diplomatic mission—Trump’s first stop on a broader four-day tour of Saudi Arabia, Qatar, and the United Arab Emirates—marks a renewed era of cooperation between the U.S. and Gulf states. It also comes amid growing global interest in artificial intelligence and strategic energy partnerships.

This visit also signals the continuation of U.S. arms exports to Saudi Arabia, following the reversal of a temporary freeze on offensive weapon sales in the previous administration. Observers note that the scale of this agreement positions the U.S.-Saudi relationship as one of the most consequential defense partnerships globally.

Live coverage of Trump’s Middle East tour is ongoing, with further announcements expected during stops in Doha and Abu Dhabi.

 

Sources: White House Press Release, Associated Press, Reuters

Tags: armsArtificial Intelligence (AI)Middle EastQatarRiyadhSaudi ArabiaSaudi Arabia Crown Prince Mohammed bin SalmanU.S. President Donald TrumpUnited Arab EmirateWashington




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