US President Donald Trump’s recent visit to Saudi Arabia marked a significant milestone in US-Saudi relations, resulting in a substantial $600 billion investment pledge from the kingdom. This commitment, announced during a meeting with Crown Prince Mohammed bin Salman (MBS), signifies a strengthening of economic ties between the two nations. The agreement covers a broad spectrum of sectors, including energy, defence, mining, and other key areas of economic cooperation. A notable component of the agreement is a defence sales agreement valued at approximately $142 billion, representing the largest such agreement between the United States and Saudi Arabia to date.
Trump’s visit to Riyadh, the first leg of his official overseas trip since his return to office, was designed to attract substantial investment from Gulf states. He was accompanied by a delegation of prominent US business and technology leaders, including billionaire Elon Musk and Sam Altman, CEO of OpenAI. This inclusion underscores the growing importance of technological collaboration and investment in the relationship. Saudi Arabia, seeking to diversify its economy away from its reliance on oil revenue, aims to become a global hub for artificial intelligence.
Historically, the US and Saudi Arabia have enjoyed a strong strategic relationship, with the kingdom supplying oil and the US providing security guarantees. However, the relationship experienced a period of strain under the Biden administration, largely stemming from the 2018 killing of journalist Jamal Khashoggi in Istanbul’s Saudi consulate. US intelligence assessed that MBS likely ordered the killing, a claim he has consistently denied. In contrast, Trump’s relationship with MBS appears significantly warmer, facilitating this substantial investment agreement.
Trump’s Gulf tour will continue with visits to Qatar and the United Arab Emirates. Notably, Israel was not included in his itinerary, raising concerns in Israel about its standing in US foreign policy priorities. While Israeli officials have attempted to downplay the omission, the decision has fuelled frustration in Washington concerning the ongoing conflict in Gaza. The $600 billion Saudi investment pledge, therefore, stands as a key event within a complex and evolving geopolitical landscape.
