Kathmandu: U.S. President Donald Trump and Saudi Crown Prince Mohammed bin Salman have signed a $142 billion (£107 billion) defense agreement, marking a major geopolitical development as Trump begins a high-stakes four-day diplomatic tour of the Gulf.
The deal will see the U.S. provide Saudi Arabia with “state-of-the-art warfighting equipment,” according to officials, while the kingdom has pledged to invest $20 billion (£15 billion) in artificial intelligence ventures within the United States.
The agreement was signed in Riyadh, where Trump is on the first leg of his tour, which also includes planned visits to Qatar and the United Arab Emirates. Notably, the itinerary excludes Israel, as pointed out by BBC North America correspondent Anthony Zurcher.
Earlier in the day, Trump attended a lavish business lunch in the Saudi capital alongside tech entrepreneur Elon Musk and other global business leaders, underscoring the tour’s focus on defense, technology, and economic partnerships.
The deal and Trump’s presence in the region come amid shifting global alliances and increased investment interest in emerging technologies such as AI. Analysts say the partnership could deepen U.S.-Saudi economic and military ties at a time when both nations are positioning themselves in an increasingly multipolar world order.
Live images from the tour continue to be broadcast, offering a rare window into the high-level diplomatic and business engagements unfolding in the Gulf.