U.S. Signs US$142bn Arms Deal with Saudi Arabia; Largest in History

TEMPO.CO, Jakarta - The United States and Saudi Arabia have formally signed a US$142 billion arms deal, equivalent to approximately Rp2,350 billion. The deal was signed during President Donald Trump's visit to the kingdom starting last Tuesday.

"The United States and Saudi Arabia signed the largest defense sector sales agreement in history, worth nearly US$142 billion, providing Saudi Arabia access to the most advanced defense equipment and services from dozens of U.S. defense firms," according to a White House statement on Tuesday, as reported by Antara.

The agreement will allow the U.S. to supply equipment to strengthen Saudi Arabia's air and space forces, as well as its air and missile defense capabilities.

In addition, Saudi Arabia will benefit from strengthened maritime and coastal security, border security, and updates to its information and communication systems, according to the White House.

Crown Prince Mohammed bin Salman stated at the Saudi-U.S. Investment Forum in Riyadh on Tuesday that the US is one of the largest partners in Saudi Arabia's Vision 2030 reform agenda, adding that joint investments are one of the most important pillars of the economic relationship between the two countries.

"The U.S. is a major destination for the Public Investment Fund, accounting for approximately 40 percent of the fund's global investments," he said, as Arab News reported.

He also stated that cooperation with Washington is not limited to economic matters but also includes "establishing peace in the region and the world."

At the event, Trump praised the ongoing transformation in Saudi Arabia, attributing it to the leadership of King Salman and the crown prince. Trump described the crown prince as a "very great man like no other" and "the greatest representative of his people," highlighting the role of Saudi citizens in advancing development in their country and the region as a whole.

Trump pointed to Riyadh's emergence as a global business hub and noted that the kingdom's non-oil sector revenue has now surpassed its oil sector income. He said Saudi Arabia deserves praise for preserving its culture and traditions while pursuing the modern, forward-thinking Vision 2030 reform agenda.

In his speech, Trump also criticized the Biden administration for removing the Houthis from the U.S. terrorist list, calling it a serious mistake.

Trump arrived in Riyadh and announced Saudi Arabia's commitment to invest up to US$600 billion, or Rp9,960 billion, in the United States.

According to the White House statement, the agreements signed during the bilateral meeting are designed to strengthen U.S. energy security and defense industries. U.S. access to global infrastructure and critical minerals is also expected to advance as a result of the agreement with Saudi Arabia.

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