Ahead Of Donald Trump's Visit, US Plans $100 Billion Arms Deal With Saudi Arabia: All You Need To Know About The Pact

(MENAFN- Live Mint) The United States is preparing to offer Saudi Arabia an arms deal exceeding $100 billion, according to six sources familiar with the matter, as reported by Reuters.

The report said the announcement is expected to coincide with US President Donald Trump's visit to the kingdom in May.

It is to be further noted that this proposed package follows the unsuccessful efforts of former President Joe Biden's administration to secure a defence agreement with Riyadh. That earlier initiative was part of a wider strategy to normalise relations between Saudi Arabia and Israel, Reuters reported.

Also Read: US President Donald Trump to visit Saudi Arabia, Qatar, and UAE from May 13-16

Under the Biden administration's proposal, Saudi Arabia was offered access to more advanced US weaponry in exchange for stopping arms purchases from China and limiting Chinese investments within the kingdom, Reuters reported.

Under the Biden administration's proposal, Saudi Arabia was offered access to more advanced US weaponry in exchange for stopping arms purchases from China and limiting Chinese investments within the kingdom.

However, Reuters could not confirm whether the Trump administration's proposed arms deal includes similar conditions or restrictions.

Here's what US Defense official said

A U.S. Defense official told Reuters:“Our defence relationship with the Kingdom of Saudi Arabia is stronger than ever under President Trump's leadership. Maintaining our security cooperation remains an important component of this partnership and we will continue to work with Saudi Arabia to address their defense needs.”

Trump on weapon sale during his first term

In his first term, Trump celebrated weapons sales to Saudi Arabia as good for US jobs. Lockheed Martin Corp could supply a range of advanced weapons systems including C-130 transport aircraft, two of the sources told Reuters.

Reuters reported citing sources that Lockheed would also supply missiles and radars.

Also Read: India to collaborate with Saudi Arabia for setting up two refinerie

RTX Corp, previously known as Raytheon Technologies, is anticipated to be a key player in the arms package, according to four sources. The deal is also expected to involve contributions from other major U.S. defense contractors, including Boeing Co, Northrop Grumman Corp, and General Atomics.

All sources requested anonymity due to the sensitive nature of the negotiations.

RTX, Northrop and General Atomics declined to comment. Boeing did not immediately respond to a request for comment. A Lockheed Martin spokesperson said foreign military sales are government-to-government transactions. Questions about sales to foreign governments are best addressed by the U.S. government.

Also Read: Saudi Foreign Minister in Washington to plan Donald Trump's visit

Reuters could not immediately establish how many of the deals on offer were new. Many have been in the works for some time, two of the sources said. For example, the kingdom first requested information about General Atomics' drones in 2018, they said. Over the past 12 months, a deal for $20 billion of General Atomics' MQ-9B SeaGuardian-style drones and other aircraft came into focus, according to one of the sources, Reuters reported.

Several executives from defence companies are considering traveling to the region as a part of the delegation, three of the sources told Reuters.

A look at US-Saudi defence deals

The United States has maintained a longstanding arms supply relationship with Saudi Arabia. In 2017, then-President Donald Trump proposed an arms deal valued at roughly $110 billion. However, by 2018, only $14.5 billion worth of those sales had been initiated, prompting growing scrutiny from Congress-particularly after the assassination of Saudi journalist Jamal Khashoggi.

Also Read: Zelensky says US, Ukraine officials to meet in Saudi Arabia: What to expect? Ceasefire, peace deal talks likely

In response to the Khashoggi killing and mounting concerns over Saudi Arabia's role in the Yemen conflict, the Biden administration, backed by Congress, imposed a ban in 2021 on the sale of offensive weapons to the kingdom. The move aimed to pressure Riyadh to scale back its military operations, which had led to widespread civilian suffering.

Under U.S. law, large-scale international arms deals require Congressional review before they can be finalised.

However, following Russia's invasion of Ukraine in 2022-which disrupted global oil markets-the Biden administration began to ease its position on Saudi Arabia.

Our defense relationship with the Kingdom of Saudi Arabia is stronger than ever under President Trump's leadership.

The ban on offensive weapons sales was officially lifted in 2024, as the US and Riyadh strengthened cooperation in the wake of Hamas' October 7 attack, particularly in developing a strategy for post-war Gaza.

(With inputs from Reuters)

Key Takeaways

• The proposed arms deal signifies a shift in US defense policy under the Trump administration.
• Saudi Arabia's defense needs are central to US-Saudi relations amidst regional security challenges.
• The deal reflects the competitive dynamics between US and China in the arms market.

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