On Trump's initial day of regional tour, United States and Saudi Arabia conclude a mammoth €127 billion arms agreement.
Tech Tit for Tat: US-Saudi Arabia Strike Gold in AI-Driven Defense Deal
In an unprecedented exchange, the US is poised to supply Saudi Arabia with top-notch warfighting hardware in exchange for the Kingdom's massive investment in American AI sector. The jaw-dropping deal was unveiled during US President Donald Trump's recent visit to Saudi Arabia.
Trump's sojourn in the oil-rich kingdom was all about deal-making, and he has already clinched a mind-boggling $142 billion defense pact with the de facto ruler, Crown Prince Mohammed bin Salman. This agreement marks a new milestone as the largest defense sales agreement in history.
The deal grants Riyadh access to cutting-edge warfighting equipment, while Saudi Arabia pledges a whopping $20 billion (€17 billion) investment in the US' burgeoning AI sector.
Beyond defense, the two nations have inked more than a dozen agreements aimed at bolstering their militaries, justice departments, and cultural institutions, reinforcing cooperation between both nations' governments.
To further strengthen their economic ties, more agreements are expected to be signed at a US-Saudi investment conference later in the day. The event has been meticulously planned to coincide with Trump's visit.
The Crown Prince has already committed to approximately $600 billion (€537 billion) in new Saudi investments in the US, with Trump hinting that $1 trillion would be even sweeter.
During their bilateral meeting, Trump lavished praise on the Crown Prince, stating, "I really believe we like each other a lot."
bounds broken: the tour's next stops
The tour's itinerary is not limited to Saudi Arabia; Qatar and the United Arab Emirates (UAE) are also on the agenda. Over the weekend, the media was awash with reports that Trump was open to receiving a luxury Boeing 747-8 jumbo jet as a gift from the wealthy ruling family of Qatar.
In addition to AI and energy-related investments, the US president is expected to negotiate new arms sales to Saudi Arabia during this leg of the tour.
It's worth mentioning that the Trump administration recently granted initial approval to sell $3.5 billion (€3.1bn) worth of air-to-air missiles to Saudi Arabia's fighter jets.
trade magic: trump's sleight of hand
As Trump faces criticism from Democrats who argue that his global tariff war and approach to Russia's full-scale invasion of Ukraine are isolating the US from its allies, he is determined to demonstrate the viability of his transactional diplomacy strategy.
Saudi Arabia and fellow OPEC+ nations have already played their part by boosting oil production, helping to lower prices and curb inflation in the US.
a question mark: Israel excluded?
The Trump administration's deliberate omission of a visit to Israel has raised eyebrows among political analysts, who suggest that the US' priorities may lie more in economic benefits for the US rather than broader diplomacy or security concerns.
William Wechsler, a senior director at the Atlantic Council, a US think tank, commented, "The main message coming out of this, at least as the itinerary stands today, is that the governments of the Gulf...are in fact stronger friends to Trump than the current government of Israel at this moment."
Before the Middle East tour, Trump temporarily halted the US airstrike campaign against Yemen's Houthis, citing a pledge from the Iran-backed rebels to cease attacks on ships along a vital global trade route. However, the US did not notify Israel, one of the Houthis' consistent targets, before making the announcement public.
This marks yet another example of the Trump administration leaving Israel in the dark regarding negotiations with common adversaries. In March, Israeli Prime Minister Benjamin Netanyahu was not informed by the US about US talks with Hamas over the Gaza conflict until after the negotiations had commenced.
show must go on: Abraham Accords expansion on the horizon?
According to US Middle East envoy Steve Witkoff, progress is imminent on expanding the Abraham Accords, a set of deals brokered by Trump in his first term in which Arab states including the UAE, Bahrain, Sudan, and Morocco recognized Israel. However, achieving Saudi-Israel normalization remains a long shot, as Riyadh has stated that it seeks US security guarantees, assistance with the kingdom's nuclear program, and progress on a path to Palestinian statehood in exchange.
With the Israel-Hamas conflict raging and recent Israeli threats to seize control of all of Gaza, there appears to be no prospect of making headway on a Palestinian state in the near future.
- The US-Saudi Arabia deal covers not only defense but also a $20 billion investment in American AI sector by the Kingdom.
- The Saudi Crown Prince has pledged approximately $600 billion in new investments in the US, suggesting a potential $1 trillion may be even more appealing.
- Beyond AI and defense, multiple agreements have been signed to bolster cooperation between the US and Saudi Arabia's justice departments, cultural institutions, and militaries.
- The tour's itinerary encompasses not only Saudi Arabia but also Qatar and the United Arab Emirates (UAE), with reports suggesting a possible luxury Boeing 747-8 jumbo jet gift from Qatar's wealthy ruling family.
- During the tour, the US President is expected to negotiate new arms sales to Saudi Arabia, as well as AI and energy-related investments.
- Trump's administration recently granted initial approval to sell $3.5 billion worth of air-to-air missiles to Saudi Arabia's fighter jets.
- Despite criticism from Democrats, Trump is demonstrating his transactional diplomacy strategy through deals like the US-Saudi defense pact, worth $142 billion.
- Saudi Arabia and fellow OPEC+ nations have already helped lower oil prices and curb inflation in the US by boosting oil production.
- The US administration's omission of a visit to Israel and its handling of negotiations with common adversaries have raised eyebrows among political analysts.
- Progress is expected on expanding the Abraham Accords, a set of deals brokered by Trump that saw Arab states recognize Israel, but achieving Saudi-Israel normalization remains difficult.
- Recent Israeli threats to seize control of all of Gaza and the ongoing Israel-Hamas conflict do not bode well for making progress on a Palestinian state in the near future.
- US Middle East envoy Steve Witkoff has stated that the expansion of the Abraham Accords is imminent, but achieving Saudi-Israel normalization requires US security guarantees, assistance with Saudi Arabia's nuclear program, and progress on a path to Palestinian statehood.
