US, Saudi Arabia sign record $600b deal covering arms, tech, energy

The administration of US President Donald Trump has announced a $600 billion investment agreement with Saudi Arabia, including a $142 billion weapons sales deal and significant collaboration in energy, technology, and infrastructure.

The agreement was formalised during Trump's visit to Riyadh on Tuesday, part of his Middle East tour that includes stops in Qatar and the United Arab Emirates. According to a White House fact sheet, the deal represents the largest arms sale ever between the two countries and marks a "new golden era" in US-Saudi relations.

The agreement includes plans to modernize Saudi Arabia’s defense capabilities with advanced military equipment and services from over a dozen American defense companies.

It also outlines Saudi investments in artificial intelligence infrastructure and US energy sectors, including $20 billion earmarked for energy infrastructure and AI data centers.

“These deals are historic and transformative for both countries,” the fact sheet stated, highlighting efforts to deepen economic and strategic ties between the long-time allies.

Trump’s trip and the announcement have reignited criticism from ethics watchdogs and political observers. Some have raised concerns over potential conflicts of interest, especially after reports emerged about a proposed $400 million luxury jet transfer from Qatar to the US Department of Defense.

This marks the second time Trump has prioritised Saudi Arabia for his first international visit as president, mirroring his 2017 trip that also resulted in major arms agreements.

The US-Saudi relationship was tested following the 2018 killing of journalist Jamal Khashoggi, for which US intelligence linked Saudi Crown Prince Mohammed bin Salman. However, strategic interests have kept bilateral cooperation intact.

In addition to defense, the new agreement includes vague commitments to cooperate on energy infrastructure and mineral development, areas closely tied to sectors where US firms may benefit from the infusion of Saudi capital.

US administrations have historically used arms sales and economic partnerships as leverage to encourage Saudi Arabia to normalize ties with Israel. However, efforts have stalled amid the ongoing conflict in Gaza and Riyadh’s insistence on a peace deal that includes the recognition of a Palestinian state — a condition Israel currently rejects.