President Donald Trump and Crown Prince Mohammed bin Salman signed the US–Saudi Strategic Defense Agreement (SDA) on Tuesday and the American leader formally designated the Kingdom as a major non-NATO ally.
Trump also approved a major defense sale package, including future F-35 deliveries, according to the White House. As part of the arms package, Saudi Arabia will also buy nearly 300 American tanks.
The White House said the deals would make it easier for US defense firms to operate in the Kingdom, secure new “burden-sharing funds from Saudi Arabia to defray US costs,” and affirm that Riyadh views the US as its primary strategic partner.
Saudi Defense Minister Prince Khalid bin Salman said the SDA “underscores both nations’ firm commitment to deepening their strategic partnership, enhancing regional security, and advancing global peace and stability.”
Separately, a Joint Declaration on the Completion of Negotiations on Civil Nuclear Energy Cooperation was signed, which, according to the White House, confirms that the US and American companies will be the Kingdom’s civil nuclear cooperation partners of choice. The agreement also ensures that all cooperation will be done in a manner consistent with “strong nonproliferation standards.”
The Critical Minerals Framework will deepen collaboration to diversify critical mineral supply chains. And the AI Memorandum of Understanding gives Saudi Arabia access to world-leading American systems “while protecting US technology from foreign influence, ensuring that American innovators will shape the future of global AI.”
Both sides agreed to pick up negotiations in the coming weeks on trade issues, including reducing non-tariff barriers and improving the investment environment.
Meanwhile, the Treasury Department and the Saudi Ministry of Finance signed agreements to enhance collaboration on capital markets technology, standards, and regulations, and deepen their partnership in international financial institutions.
During their Oval Office meeting, MBS said his country would increase investments in the United States to $1 trillion from $600 billion. “I believe, Mr. President, today and tomorrow, we’re going to announce that we are going to increase that 600 billion to almost $1 trillion investment, real investment and real opportunity by details in many areas,” the Crown Prince told the US president.
On Wednesday, Trump, MBS and over 400 CEOs from Saudi and US companies will attend the US-Saudi Investment Forum. Trump will deliver remarks, the White House announced late Tuesday.
