RIYADH, MAY 13: US President Donald Trump secured a $600 billion commitment from Saudi Arabia on Tuesday to invest in the United States after the oil power rolled out the red carpet for him at the start of a tour of Gulf states.
Trump punched the air as he emerged from Air Force One to be greeted by Prince Mohammed bin Salman, who later signed an agreement with the president in Riyadh on energy, defence, mining and other areas.
Saudi Arabia’s investment commitment includes what the US described as the largest defence sales agreement between the allies, worth nearly $142 billion.
Reuters reported in April that the US was poised to offer the kingdom an arms package worth well over $100 billion.
“I really believe we like each other a lot,” Trump said during a meeting with the crown prince, Saudi Arabia’s de facto ruler.
The US and Saudi Arabia had discussed Riyadh’s potential purchase of Lockheed F-35 jets, two sources briefed on discussions told Reuters, referring to a military aircraft that the kingdom is long thought to have been interested in.
It was not immediately clear whether those aircraft were covered in the deal announced on Tuesday.
Trump, who is accompanied by US business leaders including billionaire Elon Musk, will go on from Riyadh to Qatar on Wednesday and the United Arab Emirates on Thursday.
He has not scheduled a stop in Israel, a decision that has raised questions about where the close ally stands in Washington’s priorities, and the focus of the trip is on investment rather than security matters in the Middle East.
“While energy remains a cornerstone of our relationship, the investments and business opportunities in the kingdom have expanded and multiplied many, many times over,” Saudi Investment Minister Khalid al-Falih told a US-Saudi investment forum.
“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,” he said before Trump’s arrival.
Trump called the Saudi crown prince a friend and said they have a good relationship, according to a pool report from the Wall Street Journal, adding that Saudi investment would help create jobs in the US.
Big investments
Business leaders at the investment forum included Larry Fink, the CEO of asset management firm BlackRock, Stephen A Schwartzman, CEO of asset manager Blackstone, and Treasury Secretary Scott Bessent.
Musk chatted briefly with both Trump and the crown prince, who is otherwise known as MbS, during a palace reception for the US president. And joining Trump for a lunch with MbS were top US businessmen, including Musk, the Tesla and SpaceX chief, and OpenAI CEO Sam Altman.
MbS has focused on diversifying the kingdom’s economy in a major reform programme dubbed Vision 2030 that includes “Giga-projects” such as NEOM, a futuristic city the size of Belgium. Oil generated 62% of Saudi government revenue last year.
The kingdom has scaled back some of its ambitions as rising costs and falling oil prices weigh.
Saudi Arabia and the US have maintained strong ties for decades based on an ironclad arrangement in which the kingdom delivers oil and the superpower provides security in exchange.
Trump has not included Israel on his schedule, although he wants Israeli Prime Minister Benjamin Netanyahu to agree to a new ceasefire deal in the Gaza war.
Israeli officials have put a brave face on Trump’s decision, but there are growing doubts in Israel about its position in his priorities as frustration mounts in Washington over the failure to end the war.
Israel’s military operations against Hamas in Gaza and Hezbollah in Lebanon, and its assassinations of the two Iran-allied groups’ leaders, have at the same time given Trump more leverage by weakening Tehran and its regional allies.
US and Iranian negotiators met in Oman over the weekend to discuss a potential deal to curb Tehran’s nuclear programme. Trump has threatened military action against Iran if diplomacy fails.
Trump is expected to offer Saudi Arabia, Iran’s regional rival, an arms package worth more than $100 billion, sources told Reuters. This could include a range of advanced weapons.
Trump’s Middle East envoy, Steve Witkoff, said last week he expected progress imminently on expanding accords brokered by Trump in his first term, under which Arab states, including the UAE, Bahrain and Morocco, recognised Israel.
But opposition by Netanyahu to a permanent stop to the war in Gaza or to the creation of a Palestinian state makes progress on similar talks with Riyadh unlikely, sources told Reuters.
