Saudi-US strike $142bn (198bn CAD) arms deal amid $600bn (837bn CAD) plan
On Tuesday, Saudi Arabia signed a deal with the U.S. to purchase weaponry worth nearly 142 billion (198 billion CAD), the White House reported. The transaction is part of a larger plan where the Saudis intend to invest $600 billion (837 billion CAD) in the United States economy.
What do you need to know?
- Saudi Arabia signed an arms purchase agreement with the U.S. worth $142 billion (198 billion CAD). The deal was made during President Donald Trump's visit to Riyadh.
- The Saudi investment plan totals $600 billion (837 billion CAD). Part of this amount will be used to purchase gas turbines and equipment from General Electric and Boeing 737-8 passenger airplanes.
- The economic strategic partnership agreement was signed with Mohammed bin Salman. This is a key element of cooperation between Saudi Arabia and the U.S.
Donald Trump began his Middle East trip with a visit to Saudi Arabia, where he signed an economic strategic partnership agreement with the de facto ruler of Saudi Arabia, Mohammed bin Salman.
Saudi investment plan
As part of the approved contracts, as reported by the White House, Saudi Arabia will purchase gas turbines and other equipment from General Electric for $14.2 billion (19.8 billion CAD). Additionally, the deal includes the purchase of Boeing 737-8 passenger airplanes valued at $4.8 billion (6.7 billion CAD).
The contracts between the U.S. and Saudi Arabia are part of a broader defence cooperation agreement between the two countries. As early as January, Mohammed bin Salman announced that Saudi Arabia plans to invest $600 billion (837 billion CAD) in the American economy over the next four years. Trump hopes to increase this amount to a $1 trillion (1.4 trillion CAD).
During his stay in Riyadh, Saudi authorities organized a mobile McDonald's for the U.S. president, which attracted media attention.
Trump is also considering participation in Ukrainian-Russian peace negotiations in Istanbul. Ukrainian President Volodymyr Zelensky has announced his presence, but there is no certainty about Vladimir Putin's participation.
