Trump Approves Historic Defense Sales in Saudi Arabia

RIYADH, Saudi Arabia – On his first day in Saudi Arabia, President Trump approved a monumental defense sales contract worth $142 billion, marking the largest deal of its kind in history.

During a talk with business leaders, the president presented Saudi Arabia as a pivotal player for fostering peace and prosperity in the Middle East, especially in light of the ongoing nuclear tensions with Iran.

“I recall standing in this room eight years ago, hopeful about how nations in this region would tackle terrorism and extremism, aiming to position themselves among the world’s most esteemed and thriving countries,” Trump stated.

Saudi Crown Prince Mohammed bin Salman, often referred to as MBS, assured Trump that the kingdom would underpin $600 billion worth of future deals if Saudi Arabia was prioritized in his second presidential term.

“Have we done a good job in America so far? They’ve invested trillions,” Trump remarked to reporters ahead of his speech while exploring the Investment Forum.

A White House release stated that the $142 billion defense contract involves the U.S. providing Saudi Arabia with advanced combat equipment and various services from American defense firms.

The agreement will enhance Air Force capabilities and develop space technology, as well as address air and missile defense, maritime security, border security, and upgrades to army communications systems.

Trump emphasized, “We have the best military equipment, the best missiles, everything.” He has historically portrayed Saudi arms sales as beneficial for the U.S. economy, although this perspective has stirred controversy in the past.

In 2019, Congress voted with bipartisan support to block $8 billion in arms sales due to concerns over Saudi actions in Yemen’s ongoing conflict. The support for Saudi Arabia has since been complicated by the 2018 murder of journalist Jamal Khashoggi in the Saudi consulate, which U.S. intelligence linked to MBS.

Trump had previously resisted such restrictions, arguing that halting arms transfers would undermine vital U.S. security partnerships.

The $600 billion investment commitment also includes plans for collaboration on sectors like energy, defense innovation, mineral resources, space exploration, and addressing infectious diseases.

As part of this initiative, Saudi firm DataVolt plans a $20 billion investment in a U.S. AI Center, while tech giants like Google and Oracle are committing $80 billion towards technology projects in both nations.

Moreover, U.S. firms such as Hill International and AECOM are involved in $2 billion infrastructure projects, which include expanding King Salman International Airport in Riyadh. Additionally, Ge Vernova will supply $14.2 billion worth of gas turbines, and Boeing has a deal to sell $4.8 billion worth of aircraft to Saudi rental service Avilase.

Another notable investment comes from Kingdom-based Samekh IV Solutions, pledging $5.8 billion to establish facilities in Michigan.

Trump highlighted the need for global acknowledgment of this transformation, stating, “These advancements aren’t the result of Western interventionists dictating how to govern or live.” He pointed out that the evolution of the modern Middle East stems from local efforts and sovereign aspirations.

Addressing Iran, Trump criticized its leadership but also expressed a desire not to deprive them of hopeful prospects for the future.

The investment conference aimed to bolster economic ties between the U.S. and Saudi Arabia, supporting the country’s Vision 2030 plan for diversification.

This vision includes the ambitious New Murabba project, touted as the world’s largest downtown initiative, featuring futuristic cube skyscrapers set to complete in the coming decade.

In a surprise move, Elon Musk took the stage at the forum, discussing his vision of integrating “millions of humanoid robots” into daily life, along with insights on how his technology could align with Saudi Arabia’s economic objectives.

After Trump’s discussions with two leaders from the Royal Court, sources observed Palantir CEO Alex Karp navigating the conference venue.

Other prominent business figures who met with Trump and MBS included CEOs from BlackRock, Boeing, Google, and Coca-Cola, among others.