US signs $600bn deal with Saudi Arabia as Donald Trump hails 'largest arms agreement in history'
13 May 2025, 16:24 | Updated: 13 May 2025, 17:55
Donald Trump and Saudi Crown Prince Mohammed bin Salman struck a deal on Tuesday during the US President's tour of the Gulf region.
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Energy, mining, and defence are all included as part of the landmark agreement.
The White House said in a statement: "Today in Saudi Arabia, President Donald J. Trump announced Saudi Arabia’s $600-billion commitment to invest in the United States, building economic ties that will endure for generations to come.
"The first deals under the announcement strengthen our energy security, defense industry, technology leadership, and access to global infrastructure and critical minerals."
An arms deal worth $142bn was also struck between the two leaders.
The White House hailed the arms deal as "the largest defence sales agreement in history",
It adds that the agreement is worth nearly $142bn (£107bn) and will see Saudi Arabia provided with "state-of-the-art warfighting equipment and services from over a dozen US defence firms".
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The pair could be seen shaking hands after the signing to applause from their delegations after signing the deal.
White House reporters could hear Trump referring to the Saudi crown prince a friend, and saying he thinks they share a good relationship.
"I really believe we like each other a lot," the US president was heard saying.
Speaking following the deal in Riyadh, Trump hailed the transformation of major cities in the Middle East.
“A new generation of leaders is transcending the ancient conflicts of tired divisions of the past and forging a future where the Middle East is defined by commerce, not chaos,” he said.
He added: “Where it exports technology, not terrorism, and where people of different nations, religions and creeds are building cities together, not bombing each other out of existence.”
Trump also heaped praise on his flurry of economic deals, claiming: "The days of economic misery under the last administration are rapidly giving way to the greatest economy in the history of the world.
"We are rocking. The United States is the hottest country... with the exception of your country, I have to say, right."
The Saudi agreement marks one of several US-Gulf business deals seemingly coming to fruition during Trump’s tour of the region.
Meanwhile, Trump also struck a deal with China on Monday to cut tariffs by 115% over the next 90 days in what could spell the end of his administration's global trade war.
Just days before this, the US announced a “historic” deal with the UK.
Trump said it was a 'great honour' to do a 'historic' trade deal with the United Kingdom, after he teased late on Wednesday that he would be making a major announcement in Washington.