U.S.-Saudi Pact Delivers Record $142 Billion in Defense Sales, $600 Billion in Investment Commitments
In Riyadh, the United States and Saudi Arabia finalized what is being described as the largest defense sales agreement in U.S. history—valued at nearly $142 billion—as part of a broader $600 billion i
U.S.-Saudi Pact Delivers Record $142 Billion in Defense Sales, $600 Billion in Investment Commitments
In Riyadh, the United States and Saudi Arabia finalized what is being described as the largest defense sales agreement in U.S. history—valued at nearly $142 billion—as part of a broader $600 billion investment package. The deal, signed by President Donald J. Trump and Saudi Crown Prince Mohammed bin Salman, marks a significant capital infusion into U.S. strategic sectors.
A White House correspondent summarized the agreement, stating:
“U.S. and Saudi Arabia sign largest defense sales agreement in history—nearly $142 billion, part of $600 billion investment package… bringing an infusion of cash to the United States.”
A new White House fact sheet framed the deal as generational in scope:
“Today in Saudi Arabia, President Donald J. Trump announced Saudi Arabia’s $600-billion commitment to invest in the United States, building economic ties that will endure for generations to come.”
Strategic Sectors Targeted
Initial projects tied to the agreement span several high-priority areas, including defense, energy, artificial intelligence, infrastructure, healthcare, and technology. According to the fact sheet, the first tranche of deals “strengthen our energy security, defense industry, technology leadership, and access to global infrastructure and critical minerals.”
Notable transactions include:
Data Infrastructure and AI: Saudi Arabia’s DataVolt to invest $20 billion in U.S.-based AI data centers and supporting energy infrastructure.
Tech Collaborations: A group of U.S. and Saudi firms—Google, DataVolt, Oracle, Salesforce, AMD, and Uber—will commit $80 billion in investments for emerging technology development across both nations.
U.S. Engineering and Exports: American firms including Hill International, Jacobs, Parsons, and AECOM will contribute to infrastructure projects such as King Salman International Airport and Qiddiya City, totaling $2 billion in U.S. services exports.
Energy Equipment: GE Vernova to export gas turbines and energy solutions valued at $14.2 billion.
Aviation: Boeing will deliver 737-8 passenger aircraft to AviLease, amounting to $4.8 billion in export revenue.
Healthcare Manufacturing: Shamekh IV Solutions, LLC will invest $5.8 billion, including a facility in Michigan to produce IV fluid at scale.
Sector-Specific Investment Funds:
$5B Energy Investment Fund
$5B New Era Aerospace and Defense Technology Fund
$4B Enfield Sports Global Sports Fund
These funds are focused on U.S.-based deployment, supporting domestic innovation and job creation.
Diplomatic Signaling
The visit also carried diplomatic significance. Upon landing at the Royal Terminal in Riyadh, President Trump was personally greeted by Crown Prince Mohammed bin Salman—an unusual gesture that broke with standard protocol. The act was widely viewed as a symbolic display of the Crown Prince’s personal alignment with the Trump administration.
“If there's one thing that's clear by now, it's that Saudi Arabia and the royal family loves President Donald J. Trump.”
This looks like a major shift in favour of the US. Middle East now fully aligned with the US, and with Russia out of Syria, capital will flow in from the GCC. Geopolitically it's US territory, but does it follow that commerically, China gets squeezed out of the region?