Saudi Crown Prince Mohammed bin Salman has announced that the kingdom has signed agreements with the U.S. worth more than $300 billion during US President Donald Trump’s current visit.
The two leaders also inked a series of bilateral agreements covering various fields, including energy and defence, on the sidelines of a Saudi-U.S. summit in the presence of Trump and bin Salman at Al-Yamamah Palace in Riyadh.
The two sides signed additional agreements in the fields of energy and defence, most notably a letter of intent between the Saudi and U.S. defence ministries regarding the development and modernisation of the Saudi Armed Forces through future defence capabilities, the Saudi Al Ekhbariya channel reported.
They also signed a memorandum of cooperation in the field of mining and mineral resources and a memorandum of understanding for cooperation in the energy sector.
Additionally, a letter of intent was signed to enhance joint cooperation and develop requirements related to ammunition, training, support services, maintenance, and modernisation of systems and spare parts for land and air systems of the Ministry of National Guard.
“Our countries share a deep economic relationship that began 92 years ago,” the Crown Prince said, emphasising that joint investments are one of the key pillars of Saudi economic ties with the U.S.
He added that Saudi Arabia currently has the largest economy in the region, adding that his country “is working on partnership opportunities with the U.S. valued at $600 billion.”
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The Crown Prince also noted that trade volume between the two nations from 2013 to 2024 reached $500 billion.
The U.S. companies account for nearly a quarter of all foreign investment in Saudi Arabia, he said.
The White House said the U.S. and Saudi Arabia have signed the “largest defence sales agreement in history” worth nearly $142 billion, providing Saudi Arabia with state-of-the-art warfighting equipment and services from over a dozen US defense firms.”
Trump arrived in Riyadh early on Tuesday, marking his first overseas trip since he took office in January. His itinerary also includes visits to Qatar and the United Arab Emirates (UAE).
The Saudi-U.S. alliance, rooted in mutual strategic interests, has evolved over nearly a century through economic, military, and geopolitical developments.
The alliance began with the discovery of oil in Saudi Arabia. In 1933, the U.S. company Standard Oil of California (SoCal) secured a concession to explore for oil, forming the Arabian American Oil Company (Aramco) in 1938. This marked the start of economic ties, as Saudi Arabia became a key oil supplier.
In 1943, President Franklin D. Roosevelt extended Lend-Lease aid to Saudi Arabia, recognising its strategic importance. The 1945 meeting between Roosevelt and King Abdulaziz Al Saud aboard the USS Quincy solidified the partnership, with the U.S. pledging military support in exchange for access to Saudi oil and influence in the region.
During the Cold War, the U.S. saw Saudi Arabia as a bulwark against Soviet influence in the Middle East. The 1951 Mutual Defense Assistance Agreement formalised military cooperation, with the U.S. providing training and equipment to Saudi forces.
The alliance faced a major test during the 1973 Arab-Israeli War when Saudi Arabia led an OPEC oil embargo against the U.S. for supporting Israel. The embargo caused an energy crisis, but diplomatic efforts preserved the alliance, with the U.S. increasing arms sales and Saudi Arabia investing petrodollars in U.S. markets.
By the 1980s, the U.S. and Saudi Arabia deepened cooperation. The 1981 AWACS aircraft sale to Saudi Arabia, despite Israeli objections, underscored U.S. commitment. Saudi Arabia also funded anti-Soviet efforts, including support for the Afghan mujahideen, aligning with U.S. interests.
Iraq’s invasion of Kuwait prompted Saudi Arabia to host U.S. troops, leading to Operation Desert Storm. This showcased the alliance’s military dimension but stirred domestic Saudi discontent over foreign presence.
The September 11, 2001, attacks, carried out by 15 Saudi nationals among others, strained relations. Public and congressional scrutiny of Saudi Arabia’s role in “funding extremism” led to tensions, though official ties remained intact. The U.S. pushed for Saudi reforms, and Saudi Arabia cooperated in counterterrorism efforts.
Post-9/11, Saudi Arabia became a key partner in the U.S.-led War on Terror, sharing intelligence and cracking down on al-Qaeda within its borders.
The 2011 Arab Spring tested the alliance, as the U.S. supported opposition movements while Saudi Arabia prioritised stability. Diverging views on Iran, especially after the 2015 Iran nuclear deal, caused friction, with Saudi Arabia feeling the U.S. was too conciliatory toward Tehran.
President Donald Trump revitalised the alliance, emphasising arms sales and economic deals. His 2017 Riyadh visit, the first foreign trip of his presidency, resulted in a $110 billion arms deal. Saudi Arabia appreciated Trump’s hardline stance on Iran.
The Biden administration took a cooler approach, criticising Saudi Arabia’s human rights record, particularly over the 2018 killing of journalist Jamal Khashoggi. The U.S. briefly paused some arms sales and removed the Houthis from the terrorist list, frustrating Riyadh. However, energy security and countering Iran kept the alliance intact.
By 2025, the alliance remains strong but complex. Saudi Arabia’s Vision 2030, aimed at economic diversification, aligns with U.S. investment interests.
However, Saudi Arabia’s growing ties with China and Russia, including OPEC+ cooperation, and its cautious approach to normalising ties with Israel, reflect a more independent foreign policy.
The U.S. continues to provide military support, with ongoing arms deals and joint exercises, while navigating Saudi Arabia’s balancing act in a multipolar world.
