Declaring it as the pillar of America first trade and investment agenda US President Donald Trump announced a historic 600 billion dollar commercial relationship with Saudi Arabia from Riyadh. The agreement which the White House has called “transformative” ushers in a new era of strategy collaboration between Riyadh and Washington in vital areas like healthcare, energy, defence, artificial intelligence, and infrastructure.
Although Trump has hinted at this worldview during his first term. He outlined his mission in the most expensive terms yet, following his pledges to put an end to “forever wars” such as the wars in Iraq and Afghanistan.
US & Saudi Arabia Deal: Important Aspects
The $600 Billion Deal included various fields of development:
Focus on AI technology and energy
The centrepiece of the agreement is the 20 billion dollars pledge made by Saudi data infrastructure behemoth DataVold. Deal to construct energy facilities and AI data centres throughout the US. Major US tech companies like Google, Oracle, Salesforce, AMD, and Uber will jointly invest an additional 80 billion dollars to advance next-generation technology in both Nations.
Manufacturing and healthcare
Shamelh IV Solutions is to invest $5.8 billion, including a new facility in Michigan to manufacture high capacity IV fluids, to support domestic manufacturing in the United States.
Significant victories for US businesses
With projects like King Salman International Airport, Qiddiya City, and the Vault under the direction of American engineering firms Jacobs, Parsons, AECOM, and Hill International, US services exports are expected to increase by more than 2 billion dollars. In the meantime, Boeing will supply 737-8 aircraft valued at $ 4.8 billion to Saudi leasing company AviLease. And GE Vernkva has signed agreements for 14.2 billion in gas turbines and energy systems.
$142 billion arms deal between the US and Saudi Arabia
The White House has referred to the arms deal between the US and Saudi Arabia as the biggest in history. “United States and Saudi Arabia science the largest defence sales agreement in history. Nearly $142 billion. Providing Saudi Arabia with state-of-the-art warfighting equipment,” the White House said in a statement.
The agreement happened while Donald Trump was in Saudi Arabia on their bilateral visit. The defence agreement covers military equipment, weapons, and other services. Other business agreements and gas turbine exports are also covered under the agreement. Trump is scheduled to make stops in Qatar and the United Arab Emirates during his Middle East tour. Economic concerns will be the primary focus. The US President will also be looking to close further significant agreements to boost investment into the US economy from affluent Gulf Nations.
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