Saudi Arabia rolls out red carpet for Trump’s return, pledging a staggering $20 billion investment in US defense and artificial intelligence projects while inking what’s described as the largest weapons deal in history.
At a Glance
- Saudi Arabia committed to a $20 billion investment in US artificial intelligence through DataVolt company
- The White House announced a record-breaking $142 billion weapons deal with Saudi Arabia
- President Trump received an elaborate welcome during his first state visit of his second term
- Crown Prince Mohammed bin Salman promised $600 billion in investment, with Trump suggesting it should reach $1 trillion
- Trump will also visit Qatar and the UAE, bypassing traditional Western allies
Historic Economic Partnership
President Donald Trump’s state visit to Saudi Arabia has yielded unprecedented economic commitments between the two nations. Saudi Arabia has pledged billions in new deals spanning defense and technology sectors, with a particular focus on artificial intelligence. The Saudi company DataVolt will invest $20 billion specifically in AI-related sites across the United States, marking a significant boost to America’s technology sector. This move comes as major tech firms like Google are simultaneously investing in both countries, creating a reciprocal economic relationship.
The scope of these investments extends far beyond technology. During a US-Saudi investment forum, Saudi Arabia’s Crown Prince Mohammed bin Salman promised $600 billion in total investments in the United States. President Trump, ever the negotiator, suggested the figure should be increased to $1 trillion. These investments are projected to create substantial employment opportunities in America, with Trump stating confidently that the deals would generate approximately two million American jobs.
Record-Breaking Defense Deal
The White House announced what it describes as the largest weapons deal in history – a nearly $142 billion agreement with Saudi Arabia. This massive defense package strengthens the military alliance between the two nations while bolstering America’s defense industry. The deal represents a stark contrast to the more reserved approach taken by former President Joe Biden’s administration, which had maintained a cautious stance toward Saudi Arabia following the 2018 murder of journalist Jamal Khashoggi.
“We have the biggest business leaders in the world here today and they’re going to walk away with a lot of cheques”, said President Trump.
Saudi Arabia has been actively working to rehabilitate its international image in recent years. The kingdom has eased certain restrictions on women and embarked on ambitious economic diversification initiatives as part of Crown Prince Mohammed bin Salman’s Vision 2030 plan. The substantial investments in American technology and defense align with this broader strategy of modernizing the Saudi economy while strengthening ties with key international partners.
Royal Welcome and Regional Tour
President Trump received an elaborate welcome upon arriving in Saudi Arabia, including fighter jet escorts for Air Force One and other ceremonial honors – signaling the importance Saudi leaders place on their relationship with Trump. This warm reception stands in stark contrast to the more distant relationship under the Biden administration. Middle East experts note that Trump appears particularly comfortable in the Gulf region, with Jon Alterman describing it as Trump’s “happy place.”
Following his Saudi visit, Trump’s itinerary includes stops in Qatar and the United Arab Emirates, notably bypassing traditional Western allies. Qatar has offered a luxury Boeing aircraft to refurbish as Air Force One, further demonstrating the high value Gulf states place on their relationship with Trump. Discussions during these visits are expected to focus heavily on regional security concerns, particularly tensions with Iran, as well as ongoing efforts to stabilize the Middle East, including the prospects for Saudi recognition of Israel – a goal both Trump and Biden administrations have pursued.