US President Donald Trump and Saudi Arabia signed a strategic economic agreement on Tuesday, with the Gulf nation committing to significant investments in the United States, including substantial defence and technology deals. The agreements were formalised as Trump began a tour of Gulf states.
The White House announced that Saudi Arabia has pledged to invest $600bn in the US This includes a nearly $142bn agreement for US defence firms to supply Saudi Arabia with “with state-of-the-art warfighting equipment and services.”
“The package also includes extensive training and support to build the capacity of the Saudi armed forces, including enhancement of Saudi service academies and military medical services,” a White House press release stated.
Other deals detailed under the new agreement include plans by DataVolt, a Saudi data centre operator, to invest $20bn in US AI and energy infrastructure. A group of companies, including Google, DataVolt, and Oracle, have committed to investing $80bn in technology across both countries. Additionally, healthcare group Shamekh IV Solution has committed to a $5.8bn investment, “including a plant in Michigan to launch a high-capacity IV fluid facility,” according to the press release.
At a formal signing ceremony in Riyadh’s Royal Court, US President Trump and Crown Prince Mohammed bin Salman signed memoranda of understanding, letters of intent, and other executive agreements spanning various government agencies.
Several agreements focused on military cooperation, including the “modernization and development of the capabilities of the Saudi armed forces through future defense capabilities.” Other military-related understandings aim for enhanced cooperation on “ammunition training, support services, maintenance system upgrades, spare parts and education for land and air systems of the National Guard,” and the “development of the health capabilities of the Saudi armed forces.”
The signing ceremony highlighted the deepening cooperation between the two nations, as the Crown Prince has sought to position Saudi Arabia as a key US ally.
Further agreements were inked, encompassing cooperation between the nations’ customs authorities, collaboration on “medical research related to infectious diseases,” enhanced “judicial cooperation,” and a partnership between the Saudi Ministry of Interior and the US Federal Bureau of Investigation, among others.
