Prepared from the perspective of a Global economist
Executive Summary
On May 13, 2025, President Donald Trump visited Riyadh, Saudi Arabia, marking his first major overseas trip in his second term. The visit focused on deepening U.S.–Saudi economic and strategic ties, highlighted by a landmark investment and defense agreement. Trump’s speech and the signed deals signal a new phase in bilateral cooperation, with significant implications for both economies and regional stability.
Speech Highlights
President Trump’s address in Riyadh emphasized the following key points:
- Strategic Partnership: Trump described Saudi Arabia as “the strongest partner” for the United States, underlining the depth of the bilateral relationship and mutual trust.
- Economic Growth and Stability: He stressed that enhanced economic cooperation would benefit both countries, create jobs, and contribute to Middle Eastern stability.
- Regional Diplomacy: Trump expressed hope that Saudi Arabia would soon join the Abraham Accords, normalizing relations with Israel, and highlighted the importance of regional peace.
- Policy Shift: He criticized previous U.S. administrations’ interventionist approaches in the Middle East, advocating for a new strategy based on partnership and mutual benefit.
Investment and Defense Agreements
During the visit, the following major agreements were announced:
- $600 Billion U.S. Investment Commitment: Saudi Arabia pledged to invest $600 billion in the United States over several years, spanning sectors such as energy, mining, defense, artificial intelligence, and digital infrastructure.
- $142 Billion Arms Deal: The two countries agreed on a record $142 billion purchase of U.S. military equipment, including missile defense systems, air force, navy, and cybersecurity assets.
- Technology and Innovation: The agreements include cooperation in AI, data centers, and high-tech sectors, with participation from leading U.S. technology firms.
- Future Expansion: Saudi Crown Prince Mohammed bin Salman indicated the potential for the total partnership to reach $1 trillion as cooperation deepens.
Economic and Strategic Implications
- For the U.S.: The agreements are expected to boost American exports, create jobs, and strengthen the U.S. position as a key economic and security partner in the Middle East.
- For Saudi Arabia: The deals accelerate economic diversification under Vision 2030, reduce reliance on oil, and position the Kingdom as a regional innovation hub.
- Regional Impact: The partnership aims to foster stability and modernization in the Middle East, while countering the influence of rival powers.
Sources
- 1 Reuters: “Trump to visit Saudi Arabia, Qatar, UAE May 13–16”
- 3 BBC Japanese: “Trump visits Saudi Arabia, announces $142 billion arms deal, lifts Syria sanctions”
- 4 Reuters: “Saudi Arabia pledges $600 billion U.S. investment during Trump visit, strategic economic agreement”
- 5 JETRO: “President Trump to visit three Middle Eastern countries in May”
- 6 BBC Japanese: “Trump begins Middle East tour, announces major U.S. investments and Syria sanctions relief”
- CNBC Television
- Saudi-US Investment Forum
This report is based on information from the above news sources and official statements as of May 2025.
