U.S. and Saudi Arabia Sign Landmark Economic and Defence Agreements

World 11:10 PM - 2025-05-13
Donald Trump and Mohammed Bin Salman. Munsif News

Donald Trump and Mohammed Bin Salman.

The US Saudi Arabia

In a major development for international relations and economic cooperation, the United States and Saudi Arabia have today signed a series of landmark agreements, signalling a deepening of their strategic partnership. The memoranda of understanding (MOUs) cover key areas such as energy, defence, space exploration, and advanced technology.

At the heart of the agreements is a £113 billion ($142 billion) defence deal—the largest in U.S. history—which will see Saudi Arabia acquire state-of-the-art military equipment and systems from over a dozen American defence companies. The deal is part of wider efforts to enhance regional security and defence collaboration.

In addition, Saudi Arabia has pledged to invest £478 billion ($600 billion) into the United States, with funding directed toward infrastructure, artificial intelligence, technology, and energy. Leading American firms such as Google, Oracle, and AMD are expected to play central roles in these initiatives, in line with Saudi Arabia’s Vision 2030 plan to modernise its economy and reduce reliance on oil.

U.S. President Donald Trump, currently visiting Riyadh, described the agreements as marking “a new era” in U.S.-Saudi relations, underpinned by mutual economic growth and shared strategic goals.

These agreements represent a significant step forward in strengthening bilateral ties, with both nations reaffirming their commitment to long-term cooperation and regional stability.



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