Trump, Saudis Sign Major $600 Billion Military & Trade Agreements/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump signed a series of agreements with Saudi Arabia, focusing on military modernization, energy cooperation, and major U.S. investments. The deal highlights closer ties between Washington and Riyadh, with Crown Prince Mohammed bin Salman hosting Trump at the Royal Court. Business leaders, including Elon Musk and Sam Altman, joined the high-profile visit amid Trump’s broader push for international investment.
Trump Saudi Agreements Quick Looks
- Defense Cooperation: U.S. and Saudi Arabia signed agreements to upgrade military capabilities, training, and maintenance for Saudi armed forces.
- Economic Investment: Saudi Arabia reaffirmed $600 billion in U.S. investment commitments, with Trump suggesting that figure could rise to $1 trillion.
- Energy & Nuclear Talks: Discussions included civil nuclear energy development and expanding fossil fuel cooperation.
- Security Ties: The FBI signed a cooperation deal with the Saudi Ministry of Interior.
- Cultural and Research Initiatives: New partnerships were announced in medical research and museum collaborations.
- AI & Business Leaders Present: Executives from OpenAI, Tesla, Google, and others attended the Riyadh investment forum.
Trump, Saudis Sign Major $600 Billion Military & Trade Agreements
Deep Look
Riyadh, Saudi Arabia — May 13, 2025
President Donald Trump deepened U.S.-Saudi relations Tuesday by signing a wide array of military and economic agreements during a high-profile visit to Riyadh. In a ceremony at the Royal Court, Trump and Crown Prince Mohammed bin Salman formalized deals aimed at expanding defense cooperation, economic investments, and bilateral institutional partnerships.
High-Profile Reception and Symbolism
Even before Trump’s plane touched down, Saudi Arabia orchestrated a rare show of military honor, with Royal Air Force F-15s escorting Air Force One into Riyadh. The grandeur continued at the Royal Court’s Al Yamamah Palace, where an elaborate lunch was held in a gold-and-blue adorned reception hall under towering chandeliers.
The crown prince appeared confident and enthusiastic as he greeted elite U.S. business leaders including Stephen Schwarzman (Blackstone), Larry Fink (BlackRock), and Elon Musk (Tesla/SpaceX). In contrast to his cool reception of President Joe Biden in 2022, Prince Mohammed used Trump’s visit to reaffirm close ties and boost Saudi Arabia’s investment profile.
Energy Diplomacy and Oil Price Pressures
The visit came amid rising expectations that Saudi Arabia and OPEC+ allies will continue elevated oil production — a move that aligns with Trump’s strategy to curb inflation and stabilize global markets. Trump views affordable energy as a key to reducing American cost-of-living pressures and even accelerating the resolution of the Russia-Ukraine conflict.
However, questions remain about how long Saudi Arabia can sustain high production levels. The kingdom reportedly needs oil prices around $96–$98 per barrel to maintain fiscal balance, but Brent crude had recently fallen to $64.77 per barrel, raising concerns about long-term viability.
Real Estate and Personal Interests
Trump’s itinerary in the Gulf underscores both political and personal stakes. The Trump Organization is actively developing luxury projects in the region — a high-rise in Jeddah, a hotel in Dubai, and a villa/golf resort in Qatar. While officially separated from these ventures, the overlap between diplomatic engagements and business interests continues to draw scrutiny.
Among the most significant agreements were those focused on upgrading Saudi Arabia’s armed forces, including new contracts on equipment maintenance, ammunition training, and logistics support for both land and air systems. An additional agreement focused on strengthening healthcare services for Saudi military personnel.
The deals are a cornerstone of Trump’s broader strategy to showcase his foreign policy accomplishments and emphasize job creation through foreign investment. During the ceremony, Trump said Saudi Arabia had already pledged $600 billion in U.S. investments, joking it might rise to $1 trillion.
“We have a tremendous relationship,” Trump said of the crown prince. “I really believe we like each other a lot.”
The gathering was as much business summit as state visit. Executives from Tesla, OpenAI, NVIDIA, Amazon, Google, Boeing, and other global firms joined Trump for a luncheon at the royal court. Notably present were Elon Musk and Sam Altman, who are scheduled to speak at the U.S.-Saudi Investment Forum later in the week.
Musk, one of Trump’s closest advisers and CEO of Tesla and X, is also expanding business ties in the region. Saudi Arabia, under Crown Prince Mohammed’s leadership, has embraced a new AI venture called “Humain,” which will reportedly collaborate with NVIDIA on a landmark 500-gigawatt deployment.
Beyond economics, Trump and bin Salman also discussed potential civil nuclear cooperation, a longstanding Saudi goal. Trump signaled support, though no final deal was announced.
Other memoranda signed Tuesday included cooperation between the FBI and Saudi Arabia’s Ministry of Interior, judicial partnerships, customs coordination, and joint medical research on infectious diseases. These initiatives suggest a broader strategic alliance beyond mere trade.
Pageantry was in full display. Trump’s arrival featured a cavalry escort on horseback and a purple ceremonial carpet, symbolizing Saudi heritage and hospitality. Inside, a coffee and tea ceremony preceded the formal agreements, with both leaders exchanging warm remarks.
Observers noted the sharp contrast between Trump’s embrace of bin Salman and the more cautious 2022 visit by President Biden. Trump praised MBS’s leadership as “wise beyond his years” and steered clear of controversy over the 2018 killing of journalist Jamal Khashoggi, which had strained U.S.-Saudi relations.
Critics, including government ethics watchdogs, continue to raise concerns over the Trump family’s expanding business interests in the Gulf. Since his return to office, the Trump Organization has announced new projects in Qatar, the UAE, and Saudi Arabia — from skyscrapers to cryptocurrency ventures.
Trump’s close alignment with Gulf business elites has prompted fears of blurred lines between public office and private profit. “The public expects a president to serve the national interest, not their own portfolio,” said Robert Weissman of Public Citizen.
Nonetheless, Saudi leaders see Trump as a reliable partner. During the investment forum, Saudi energy tycoon Mohammad Abunayyan praised Trump for embracing the reality of global energy needs:
“We are happy with the Trump administration because they understand that fossil fuels are still essential.”
Skipping Israel Sends a Strong Message
One of the most notable features of Trump’s itinerary was his decision to bypass Israel — a move seen by some analysts as symbolizing shifting alliances. While Trump’s Gulf relationships appear stronger than ever, Israeli leaders expressed frustration at being sidelined on key security matters.
Notably, Trump’s administration did not inform Israel before publicly announcing a pause in U.S. airstrikes against Yemen’s Houthi rebels. The Houthis remain hostile toward Israel and have continued maritime attacks despite the truce. Earlier lapses in communication included secret nuclear discussions with Iran and backchannel talks with Hamas — all of which left Israeli Prime Minister Benjamin Netanyahu in the dark.
“Israel will defend itself by itself,” Netanyahu declared in response, adding that American support is welcome but not essential.
Limited Progress on Israel-Saudi Normalization
Trump also sought to revive his Abraham Accords-era ambitions to normalize relations between Israel and Saudi Arabia. Yet, the path forward remains murky. Riyadh has stated that normalization hinges on a threefold U.S. commitment: robust defense guarantees, help with a Saudi nuclear energy program, and credible progress toward a Palestinian state.
With the war in Gaza intensifying and no apparent breakthrough on Palestinian statehood, movement on these fronts seems unlikely. Still, Prince Mohammed recently hosted Palestinian Vice President Hussein al-Sheikh in Jeddah, offering a symbolic gesture toward diplomacy.
As Trump continues his tour with stops in Qatar and the UAE, the spotlight remains on how his blend of business-minded diplomacy and personal rapport with Gulf rulers will shape U.S. influence in the region.
The president will next travel to Doha for talks with Emir Tamim bin Hamad Al Thani and visit U.S. troops stationed at Al Udeid Air Base. He concludes his trip in Abu Dhabi on Thursday with a meeting with UAE President Sheikh Mohammed bin Zayed Al Nahyan.
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