The US and Saudi Arabia have entered into a package of agreements where Riyadh will invest $600 billion in the US economy and business. This was announced by the White House when President Donald Trump visited Saudi Arabia.
The key element of the agreements was the ‘largest in history’ agreement on the supply of US defence products for $142 billion. According to the US administration, the agreement provides for the transfer to Saudi Arabia of the latest military equipment, including air and missile defence systems, as well as air force and space technology. More than ten leading American defence companies are involved in the implementation of the project.
In the meantime, the Saudi company DataVolt indicated it would invest approximately $20 billion in constructing data centers and energy infrastructure in America. The complexes will be part of a next-generation digital and technological ecosystem with energy independence and resilience of essential digital infrastructure.
US technology giants Google, Oracle, Salesforce and Uber, in turn, signed agreements totalling $80 billion for bilateral investments in digital solutions, artificial intelligence and cloud technologies in both the US and the Middle East.
Another strategic area of co-operation is energy. GE Vernova will give Saudi Arabia energy solutions and gas turbines worth $14.2 billion. Saudi Arabia’s state-run aviation network also had AviLease sign a $4.8 billion agreement with Boeing for delivering aircraft.
These are not just agreements, but a signal to the world that the U.S. and Saudi Arabia are serious about forging a long-term, mutually advantageous relationship. Such a relationship of investment, especially in high-technology industries, would have a profound effect on rearranging the balance of power in the Middle East and increasing U.S. leverage in the region.
President Trump, whose first overseas trip since returning to the White House was this one, also will visit Qatar and the United Arab Emirates.
