A Monumental Agreement in Riyadh
On May 13, 2025, U.S. President Donald Trump and Saudi Crown Prince Mohammed bin Salman met at the Royal Court in Riyadh to sign a sweeping agreement called the Strategic Economic Partnership. The partnership, worth up to $600 billion, includes dozens of memorandums of understanding and letters of intent across several sectors such as defense, energy, space, mining, health, and culture. The White House described it as “a new golden era of partnership between the United States and Saudi Arabia” and noted that it builds “economic ties that will endure for generations to come.”
President Trump called the agreements “historic and transformative,” stating they would “help create up to 2 million U.S. jobs.” Crown Prince Mohammed echoed the sentiment, saying during a joint forum in Riyadh, “Today we hope for investment opportunities worth $600 billion, including deals worth $300 billion that were signed during this forum. We will work in the coming months on the second phase to complete deals and raise it to $1 trillion.”
Major Benefits to the United States
1. A Surge in U.S. Job Creation
The White House estimated the potential creation of up to 2 million American jobs. These would come through manufacturing, construction, high-tech sectors, and new infrastructure linked to the partnership. Many of the new positions are expected to be connected to the defense, energy, and AI industries.
2. Groundbreaking Technology Investments
Saudi Arabia’s DataVolt announced a $20 billion plan to build artificial intelligence data centers and energy infrastructure across the United States. Additional agreements with major American companies like Google, Oracle, Salesforce, AMD, and Uber are projected to result in $80 billion in investments for “cutting-edge transformative technologies in both countries,” according to White House officials.
3. The Largest U.S. Defense Deal in History
The two nations signed what Trump’s administration called “the largest defense sales agreement in history.” The nearly $142 billion package includes air and missile defense systems, upgrades to the Saudi Air Force and space capabilities, maritime and border security tools, and advanced communication systems. The deal involves over a dozen American defense contractors and will take several months to complete.
4. Boost in American Manufacturing and Exports
Several major American firms are directly benefiting from the agreement. GE Vernova is exporting $14.2 billion worth of gas turbines and energy solutions. Boeing secured a deal to supply $4.8 billion in 737-8 aircraft to AviLease, a Saudi aviation leasing firm. Hill International, Jacobs, Parsons, and AECOM will provide $2 billion in U.S. consulting services for projects in Saudi Arabia such as King Salman International Airport and Qiddiya City.
5. Strengthening U.S. Medical and Cultural Influence
A $5.8 billion investment by Saudi company Shamekh IV Solutions includes a new IV fluid production plant in Michigan. Meanwhile, the Smithsonian Institution signed new collaboration agreements with Saudi Arabia through its National Zoo and the National Museum of Asian Art, creating opportunities for cultural and scientific exchange.
6. Expanded Bilateral Cooperation
The agreement also included a memorandum of understanding between the Saudi Ministry of Energy and the U.S. Department of Energy. This pact aims to increase cooperation on sustainable energy technologies. In addition, the two countries agreed to work together on mineral resource development, infectious disease research, and judicial modernization, including a cooperation agreement between the FBI and the Saudi Ministry of Interior.
What Saudi Arabia Gains from the Deal
1. Advanced Military Capabilities
The $142 billion arms agreement will modernize Saudi Arabia’s armed forces with U.S.-made equipment. This includes air and missile defense systems, maritime defense, land forces upgrades, and communication networks. According to the White House, this provides the kingdom with “state-of-the-art warfighting equipment and services.”
2. AI and Space Technology
Saudi Arabia will receive access to American advancements in artificial intelligence, AI infrastructure, and space exploration. The Saudi Space Agency signed an agreement with NASA to collaborate on missions including the Artemis II project. The cooperation also involves building and deploying CubeSats and sharing research related to space weather.
3. Diversification of the Economy
The kingdom’s focus on diversifying away from oil is supported by several deals. A planned $5 billion “AI Zone” will be built with help from U.S. companies including Amazon Web Services and AMD. Saudi Arabia is also forming partnerships with American LNG firms like NextDecade and Sempra through its state oil company, Aramco.
4. Cultural and Educational Exchange
Through the Smithsonian agreements and other joint projects, Saudi Arabia is investing in educational and cultural development. These efforts are part of the Vision 2030 initiative, which aims to modernize Saudi society and improve global perceptions of the kingdom.
5. Private Investment and Financial Access
Saudi investment fund Hassana signed a $150 million memorandum with Franklin Templeton to explore U.S. private credit opportunities. Other agreements totaling $15 billion were signed with U.S.-based investment platform Burkhan World Investments, opening more financial cooperation between the two countries.
Supporters Applaud a Bold Strategy
Supporters of the agreement praised the scale and scope of the investment. The White House said, “Saudi Arabia’s $600-billion commitment to invest in the United States will build economic ties that will endure for generations to come.” Trump stated during the signing, “This is a once-in-a-lifetime opportunity to bring jobs back to the U.S. and forge a powerful friendship that will benefit both our people.”
Many business leaders, including Elon Musk, Sam Altman, and Larry Fink, attended the Riyadh signing events and applauded the alignment between American innovation and Saudi capital. Trump added during one event, “I really believe we like each other a lot,” referring to his rapport with Crown Prince Mohammed bin Salman.
Critics Raise Caution Flags
Despite the economic excitement, some critics expressed concern over the implications of the deal. Human rights groups warned that closer U.S.-Saudi relations may send the wrong message about democratic values, especially given the kingdom’s record on civil liberties. Lawmakers from both parties also questioned the wisdom of selling large amounts of advanced weaponry to a government with a history of controversial military interventions.
There are also concerns about transparency. Many of the memorandums signed were not immediately released in full detail, leaving open questions about the execution and oversight of the agreements.
A Global Power Shift?
With this $600 billion agreement, Trump has deepened one of the most consequential economic and strategic alliances in modern geopolitics. For Saudi Arabia, it marks a major leap in its push to become a hub for energy, technology, and defense leadership. For the United States, it is a shot in the arm for job creation, manufacturing, and global influence.
Whether the full $600 billion is ultimately invested remains to be seen. But as Crown Prince Mohammed bin Salman put it, “This is only the beginning.”
