U.S. President Donald Trump said Saudi Arabia will invest $600 billion in the United States, including through technical partnerships and a $14.2 billion arms sales agreement.
A fact sheet shared by the White House on Tuesday explained that the agreement also includes cooperation in areas such as energy and mineral development, and is the largest weapon sales ever made between the two countries.
"The deals celebrated today are historic and transformative for both countries, representing a new golden age of partnership between the United States and Saudi Arabia," the situation statement reads.
The agreement represents a deepening of economic and military relations between the two countries, a trend that has continued for decades under Republican and Democratic presidents.
Trump competed in the Saudi capital Riyadh on Tuesday as part of the Middle East Tour, his second president’s first international trip. Later this week, he is expected to stay in Qatar and the United Arab Emirates.
But the trip has re-proposed criticism of Trump’s possible use of diplomatic outings to promote personal gain.
For example, a proposed $400 million luxury aircraft from Qatar to the U.S. Department of Defense raised questions about the morality and constitutionality of receiving gifts from foreign governments.
Trump's first term as president in 2017 also included Saudi Arabia on his first big trip, the voyage peaked as a multi-billion dollar arms deal.
But the murder of Saudi journalist Jamal Khashoggi at a consulate in Istanbul briefly threatened to subvert the relationship. The U.S. government claims that troops linked to Saudi Crown Prince Mohammad bin Salman are responsible for the killing.
Tuesday's agreement is intended to help modernize the Saudi military through "state-of-the-art combat equipment and services from multiple U.S. defense companies," according to the White House fact sheet.
"The first key component is upgrading Saudi Arabia's defense capabilities," Al Jazeera correspondent Hashem Ahelbarra reported.
"This is a country that has been trying to invest a lot of money over the past few years," he added.
However, the newly minted deals are not limited to security cooperation. The agreement also sets out a plan in which Saudi Arabia will invest $20 billion in U.S. energy infrastructure and data centers, and invest in U.S. artificial intelligence, and inject cash into industries closely linked to the Trump administration.
In both regions, U.S. companies will gain potential surprises.
“Saudi Arabia wants to be one of the top global investors in AI, which is why you see a lot of tech CEOs in Riyadh who want to get some of these contracts,” Ahelbarra said.
The deal also includes references on collaborations in energy infrastructure and mineral investment without providing many details.
Various U.S. governments, including Trump’s term, have used greater incentives to cooperate in security and arms sales to normalize Saudi Arabia’s diplomatic relations with Israel.
The two countries have never had formal diplomatic ties. But during Trump's first term, Republican leaders launched a series of agreements called the Abraham Agreement to increase ties between Israel and the states in the Middle East.
Countries like the United Arab Emirates, Bahrain and Sudan have agreed to make Israel part of the agreement. But Saudi Arabia has always been a perseverance and can be seen as a contribution of the second Trump administration.
However, Israel’s war in Gaza complicated these efforts. UN experts warn that Israel's actions in Gaza are consistent with genocide, and South Africa charged Israel's crimes in the International Court of Justice.
Meanwhile, the International Criminal Court has issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant to charge war crimes.
The booming death toll in Gaza and allegations of human rights violations have caused anger in the region and insisted that Riyadh insisted that normalization should be only part of a broader agreement on the Palestinian state, which Israel would not want to consider.