Riyadh: In a major step toward deepening economic and strategic ties, the United States and Saudi Arabia have signed a wide-ranging economic agreement, including a landmark $142 billion defence deal, as part of a broader investment commitment worth $600 billion from the Kingdom into the American economy.
The announcement was made during US President Donald Trump’s visit to Riyadh, which marks the beginning of his tour of Gulf nations.
President Trump, greeted on arrival by Saudi Crown Prince Mohammed bin Salman (MbS), celebrated the occasion as a major milestone in bilateral relations.
State media reported that the agreement covers several critical sectors, including energy, defence, and mining, among others.
“I really believe we like each other a lot,” President Trump said during his meeting with the Crown Prince, referring to the cordial and cooperative atmosphere between both leaders.
Trump also referenced his previous visit to Saudi Arabia in 2017, emphasizing the importance of ongoing investment from Riyadh, which he said would help create thousands of jobs in the United States.
He humorously suggested the $600 billion figure could eventually reach $1 trillion.
Trump’s delegation includes high-profile American business leaders, such as Elon Musk, BlackRock CEO Larry Fink, Blackstone CEO Stephen A. Schwarzman, Treasury Secretary Scott Bessent, and OpenAI CEO Sam Altman.
They joined the president at a Saudi-US investment forum and attended a palace luncheon hosted by MbS. Musk was seen conversing with both Trump and the Crown Prince during a reception held at the Royal Court.
Saudi Investment
The investment forum also featured remarks from Saudi Investment Minister Khalid Al-Falih, who stated that while energy remains a vital aspect of the US-Saudi relationship, the scope of investment opportunities has significantly expanded.
“When Saudis and Americans collaborate, good things happen—more often than not, great things,” he noted.
As part of its Vision 2030 economic diversification plan, Saudi Arabia is aggressively investing in high-tech sectors, with approximately $1 billion already funneled into cutting-edge technologies—most of which have benefited US-based companies, according to NEOM Deputy CEO Rayan Fayez.
Neom City
The futuristic mega-city NEOM is one of the Kingdom’s most ambitious “giga-projects,” aimed at reducing reliance on oil, which still accounted for 62% of government revenue last year.
The economic engagement between the two countries continues despite lingering political tensions.
The relationship between MbS and Trump has been notably smoother than that with former President Joe Biden, particularly in the aftermath of the 2018 killing of journalist Jamal Khashoggi.
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While US intelligence implicated MbS in the murder, he has consistently denied involvement.
During his trip, President Trump will not be visiting Israel, raising speculation about its current standing in Washington’s strategic focus.
Although Israeli officials have downplayed the omission, concerns persist over the Biden-Trump transition and the perceived deprioritization of Israeli interests, especially amid ongoing military actions in Gaza.
Meanwhile, US and Iranian representatives held indirect talks in Oman over the weekend regarding Iran’s nuclear program, with President Trump warning of potential military action if diplomatic efforts fail.
In a related development, Trump is expected to offer Saudi Arabia a new arms package exceeding $100 billion, which could include a range of advanced weapons systems.
Efforts to revive the Abraham Accords, initially brokered by Trump during his first term, are also reportedly underway.
However, sources suggest that Israel’s reluctance to agree to a Gaza ceasefire or support a two-state solution has stalled progress on extending those normalization agreements to include Saudi Arabia.
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Nonetheless, Riyadh’s deepening economic engagement with Washington and continued alignment on regional defence matters underscores the enduring strength of the US-Saudi alliance, especially at a time of geopolitical realignment and economic transformation in the Middle East.
