Trump signs strategic partnership deal in Saudi Arabia
U.S. President Donald J. Trump announced a landmark $600 billion investment commitment from Saudi Arabia into the United States, during the second day of his Middle East tour on Tuesday.
Trump signs strategic partnership deal in Saudi Arabia
The Economics of Geography

Trump signs strategic partnership deal in Saudi Arabia

Photo: Brendan Smialowski/AFP
Eurasia 13/05/2025 21:15

U.S. President Donald J. Trump announced a landmark $600 billion investment commitment from Saudi Arabia into the United States, during the second day of his Middle East tour on Tuesday. The deal, described by the White House as “historic and transformative,” marks a significant milestone in U.S.–Saudi economic and defense cooperation.

The investment package includes a wide range of agreements across key sectors including defense, energy, infrastructure, healthcare, and advanced technologies. According to the White House, the initial deals signed in Riyadh will enhance American energy security, defense industry capabilities, access to critical minerals, and global technology leadership.

Among the largest commitments:

  • DataVolt, a Saudi firm, will invest $20 billion in AI data centers and energy infrastructure in the U.S.

  • Tech giants such as Google, Oracle, Salesforce, AMD, and Uber—alongside DataVolt—will jointly invest $80 billion in cross-border transformative technologies.

  • U.S. firms Hill International, Jacobs, Parsons, and AECOM will contribute $2 billion in services exports by participating in Saudi infrastructure megaprojects such as King Salman International Airport and Qiddiya City.

  • GE Vernova will export $14.2 billion worth of gas turbines and energy solutions, and Boeing will supply $4.8 billion in 737-8 aircraft to AviLease.

Healthcare investment includes Shamekh IV Solutions, LLC launching a $5.8 billion IV fluid facility in Michigan. Sector-specific investment funds include a $5 billion Energy Investment Fund, a $5 billion Aerospace and Defense Technology Fund, and a $4 billion Sports Fund, each targeting job creation and innovation in the U.S.

In defense, the U.S. and Saudi Arabia signed the largest defense sales agreement in history, valued at nearly $142 billion. The package includes air force and space capabilities, missile defense systems, maritime and border security assets, and communication systems, along with extensive training and institutional support for Saudi armed forces.

The visit also highlighted long-term strategic cooperation. President Trump referenced the 80th anniversary of the historic 1945 meeting between President Franklin D. Roosevelt and King Abdulaziz aboard the USS Quincy, emphasizing a growing eight-decade partnership.

Recent figures underscore the strength of this relationship:

  • In 2023, Saudi direct investment in the U.S. totaled $9.5 billion.

  • In 2024, bilateral trade in goods reached $25.9 billion, with the U.S. holding a trade surplus of $443 million.

The two nations signed further agreements including:

  • A U.S.-Saudi energy cooperation agreement, focusing on infrastructure development and innovation.

  • A Memorandum of Cooperation on mining and mineral resources.

  • A NASA–Saudi Space Agency agreement for a CubeSat deployment on the Artemis II mission.

  • A modernized air transport agreement, enabling expanded cargo services for U.S. and Saudi carriers.

  • Cultural and scientific partnerships between the Smithsonian and the Royal Commission for AlUla, including research and conservation initiatives.

Saudi Arabia remains the largest U.S. Foreign Military Sales partner, with active cases valued over $129 billion.

Today’s announcement builds on President Trump’s earlier 2017 agreements with Saudi Arabia and follows last week’s U.S.–UK trade deal. According to the administration, the investment package reflects President Trump’s ongoing strategy to strengthen American industry and job creation through high-level international negotiations.

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