US President Donald Trump received a major boost in U.S.-Saudi relations. He secured a $600 billion investment commitment from Saudi Arabia. In addition, he signed a $142 billion arms deal, which the White House called the largest defense agreement in U.S. history.
Trump Begins Key Gulf Tour
Trump began his three-nation tour in Saudi Arabia on Wednesday. He will also visit the United Arab Emirates and Qatar. This marks his first major foreign trip during his second term.
As he stepped off Air Force One, Trump raised his fist in the air. Saudi Crown Prince Mohammed bin Salman warmly welcomed him. Shortly after, they signed major agreements in Riyadh covering energy, defense, mining, and more.
Record-Breaking Arms Deal Finalized
During the visit, Trump completed a $142 billion arms deal. According to the White House, it is the biggest defense cooperation agreement ever signed by the U.S. The deal includes contracts with more than a dozen American defense companies. These contracts focus on air and missile defense, aerospace, naval protection, and secure communications.
Massive Investment Announcement
Meanwhile, at the U.S.-Saudi Investment Forum, Crown Prince Mohammed shared big news. “Today we hope for investment opportunities worth $600 billion, including deals worth $300 billion that were signed during this forum,” he said. He also added, “We will work in the coming months on the second phase to complete deals and raise it to $1 trillion.”
Saudi Arabia Among Top U.S. Defense Buyers
Notably, Saudi Arabia is already one of the top buyers of U.S. weapons. In April, Reuters reported that Washington was preparing an arms package worth over $100 billion for the kingdom. During the meeting, Trump told the crown prince, “I really believe we like each other a lot.”
Discussions Continue Over F-35 Fighter Jets
Furthermore, Reuters sources said that U.S. and Saudi officials discussed the kingdom’s long-standing interest in buying F-35 fighter jets from Lockheed Martin. However, it is still unclear whether these jets are included in the current deal.
High-Profile Business Delegation Joins Trump
In addition, several top U.S. business leaders are part of Trump’s Gulf trip. He will visit Qatar on Wednesday and the UAE on Thursday. Interestingly, Israel is not part of the travel plan, which raised questions about its current status in U.S. foreign policy.
Saudi Officials Emphasize Economic Expansion
Saudi Investment Minister Khalid al-Falih addressed the investment forum. He said, “While energy remains a cornerstone of our relationship, the investments and business opportunities in the kingdom have expanded and multiplied many, many times over.” He added, “As a result … when Saudis and Americans join forces very good things happen, more often than not great things happen when those joint ventures happen.”
Trump Highlights U.S.-Saudi Cooperation
Later, Trump toured an exhibition hall that showcased Saudi Arabia’s massive development plans. He spoke with key Saudi officials including Yaser al-Rumayyan (head of the sovereign wealth fund), Aramco CEO Amin Nasser, and Minister al-Falih. According to a Wall Street Journal pool report, Trump called the crown prince a friend and said they had a good relationship. He added that Saudi investments would help create jobs in the U.S.
Prominent CEOs Attend the Forum
Also present at the forum were major U.S. business figures like Larry Fink (CEO of BlackRock), Stephen Schwarzman (CEO of Blackstone), and Treasury Secretary Scott Bessent. Elon Musk joined Trump for a lunch meeting with MbS, along with OpenAI CEO Sam Altman. Musk also briefly chatted with both Trump and the crown prince at a palace reception.
Saudi Vision 2030 Pushes Reform
Crown Prince Mohammed continues to push for economic reform through his Vision 2030 plan. This includes massive “Giga-projects” such as NEOM, a high-tech city planned to be the size of Belgium. Last year, oil made up 62% of the Saudi government’s revenue. However, falling oil prices and rising costs have forced the kingdom to slow some of its ambitions.
Longstanding U.S.-Saudi Alliance Continues
For decades, the U.S. and Saudi Arabia have maintained a strong partnership. The kingdom supplies oil, and the U.S. provides security in return. This mutual arrangement remains firm.
Israel Left Out, But Gaza War Talks Continue
Although Trump left Israel out of his schedule, he wants Israeli Prime Minister Benjamin Netanyahu to agree to a new ceasefire in Gaza. The conflict there has lasted for 19 months. Meanwhile, Israel continues operations against Hamas in Gaza and Hezbollah in Lebanon. These actions have weakened Iran’s regional allies and given Trump more leverage in Middle East talks.
U.S. and Iran Resume Nuclear Talks
Over the weekend, U.S. and Iranian negotiators met in Oman. They discussed ways to limit Iran’s nuclear program. Trump warned that if diplomacy fails, military action remains on the table. At the forum, Trump said he wants to offer Iran “a new and better path toward a more helpful future.” He also warned, “If no new nuclear deal is reached, Tehran will face maximum pressure.”
Hope for Saudi-Israel Normalization
Trump’s Middle East envoy, Steve Witkoff, recently said progress is expected soon on expanding the normalization deals. These began during Trump’s first term, when countries like the UAE, Bahrain, and Morocco recognized Israel.
Trump told the forum, “It is my fervent hope” that Saudi Arabia will also recognize Israel. He added, “But you’ll do it in your own time.” However, sources told Reuters that Netanyahu’s opposition to a permanent Gaza ceasefire or a Palestinian state makes progress unlikely for now.
