IRIA News

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U.S. President Donald Trump kicked off his Middle East tour in Riyadh on May 12, 2025. Trump touched down in the Middle East for the first time in his second term, where Saudi Crown Prince Mohammed bin Salman personally welcomed him.

Trump started his tour by securing a monumental $600 billion investment commitment from Saudi Arabia, marking a significant deepening of the strategic and economic partnership between Washington and Riyadh.

The high-stakes U.S.-Saudi Investment Forum, held in the Saudi capital, brought together top business leaders, tech executives, and policymakers from both countries, culminating in a series of major agreements spanning defense, infrastructure, energy, and technology.

While the official commitment stands at $600 billion for the next four years, Crown Prince Mohammed bin Salman, widely known as MBS, stated during the forum that ongoing negotiations could elevate the total figure to nearly $1 trillion.

“Today we hope for investment opportunities worth $600 billion, including deals worth $300 billion that were signed during this forum,” MBS said. “We will work in the coming months on the second phase to complete deals and raise it to $1 trillion.”

President Donald J. Trump with His Royal Highness Crown Prince Mohammed bin Salman of the Kingdom of Saudi Arabia 🇺🇸🇸🇦 pic.twitter.com/vR7U45DXP3

— The White House (@WhiteHouse) May 13, 2025

Record-breaking arms deal

A highlight of the forum was the signing of a $142 billion arms agreement, the largest defense cooperation package ever struck between the United States and another country.

The deal spans a broad array of military services and technologies, including missile defense systems, advanced fighter aircraft, maritime defense capabilities, space collaboration, and secure communications systems. The agreement encompasses over a dozen U.S. defense contractors, with Lockheed Martin, Boeing, and Northrop Grumman among the principal beneficiaries.

Although the long-speculated sale of F-35 stealth fighter jets to Saudi Arabia remains under discussion, it was not confirmed as part of the current deal. Nevertheless, the inclusion of high-grade defense systems underscores the enduring security-for-oil framework that has defined U.S.-Saudi ties for decades.

In addition to defense, Saudi Arabia pledged substantial investments in U.S. technology infrastructure. This includes a $20 billion injection into American artificial intelligence centers and another $80 billion earmarked for joint tech ventures with leading companies like Google and Oracle.

The kingdom also signaled strong interest in developing semiconductor production lines, cloud computing hubs, and renewable energy research facilities on U.S. soil.

The partnership extends beyond defense and technology. Major American firms are set to be involved in flagship Saudi infrastructure initiatives, including the expansion of King Salman International Airport and urban development projects under the ambitious Vision 2030 program, a wide-ranging economic diversification plan championed by MBS.

Vision 2030 aims to reduce Saudi Arabia’s dependence on oil, which still accounts for over 60% of government revenues. The strategy includes the construction of futuristic “giga-projects” such as NEOM, a smart mega-city the size of Belgium that will rely on renewable energy and AI-driven governance.

High-profile attendees and strategic meetings

The event was attended by some of the world’s most influential business figures from Saudi Arabia and the U.S. Elon Musk, CEO of Tesla and SpaceX, was seen exchanging views with both Trump and MBS.

Also present were Sam Altman, CEO of OpenAI; Larry Fink, chairman of BlackRock; Stephen A. Schwarzman of Blackstone; and Andy Jassy, CEO of Amazon. U.S. Treasury Secretary Scott Bessent, State Secretary Marco Rubio, Defense Secretary Peter Heseth, and other high-profile U.S. officials also joined the delegation.

Trump was shown touring models of NEOM and other grand Saudi projects alongside Riyadh’s sovereign wealth fund governor Yaser Al-Rumayyan, Aramco CEO Amin Nasser, and Investment Minister Khalid Al-Falih. “When Saudis and Americans join forces, very good things happen, more often than not, great things happen,” Al-Falih said during the forum.

During the luncheon, Trump referred to Crown Prince Mohammed bin Salman as “a friend,” adding, “I really believe we like each other a lot.” He emphasized that Saudi investments would help create jobs in the U.S. and reaffirmed that the bilateral relationship remains one of the strongest the U.S. maintains in the region.

The symbolic weight of the visit was not lost either. The 92-year-old partnership between the two nations, built on energy cooperation and security guarantees, has now expanded into new strategic domains such as space exploration, artificial intelligence, and green technologies.

Syria sanctions lifted

In a move that stunned observers, President Trump announced the immediate lifting of U.S. sanctions on Syria during his keynote speech at the investment forum. The decision comes in response to recent developments in Syria, where Ahmad al-Sharaa, a former Islamist insurgent, has taken control of the government after leading a successful coalition to oust long-time dictator Bashar al-Assad.

“There is a new government that will hopefully succeed in stabilizing the country and keeping peace,” Trump said. “I will be ordering the cessation of sanctions against Syria in order to give them a chance at greatness.”

This move marks a dramatic policy reversal. Until recently, the U.S. government had refused to engage directly with Sharaa, citing his previous leadership role in Hayat Tahrir Al Sham, a group still designated as a terrorist organization by the U.S. due to its historical ties to Al Qaeda. However, White House officials noted that the administration sees the transition in Damascus as an opportunity to reset relations and support Syria’s reconstruction.

Secretary of State Marco Rubio is set to meet with Syria’s new Foreign Minister Asaad Al Shaibani later this week on the sidelines of a NATO summit in Turkey. Trump also agreed to “say hello” to President Sharaa in Riyadh during private discussions, according to White House sources.

The lifting of sanctions has drawn mixed reactions globally. Gulf countries such as the UAE and Qatar have reportedly welcomed the move, hoping it will clear the way for them to assist Syria’s rebuilding process. However, critics in Washington and Europe have warned against prematurely legitimizing a regime that still lacks broad international recognition and whose internal cohesion remains uncertain.

Regional implications

Trump’s Middle East tour will continue with stops in Qatar and the United Arab Emirates. However, notably absent from his itinerary is Israel. This exclusion has raised eyebrows, particularly as Israel continues its military campaign in Gaza and southern Lebanon.

Although Trump has pushed for a new ceasefire and has encouraged Israeli Prime Minister Benjamin Netanyahu to explore a two-state solution, little progress has been made. Sources suggest that Netanyahu’s reluctance to commit to ending the Gaza war or accepting a Palestinian state has become a roadblock to broader regional normalization.

Nevertheless, Trump expressed optimism that Saudi Arabia might soon join the Abraham Accords, normalization agreements signed during his first term with countries such as the UAE, Bahrain, and Morocco. “It is my fervent hope that Saudi Arabia will sign its peace agreement with Israel,” he said. “But you’ll do it in your own time.”

At the same time, U.S. negotiators recently met with Iranian officials in Oman to resume stalled talks on Iran’s nuclear program. Trump reiterated that while diplomacy remains the preferred path, “maximum pressure” will continue if Iran fails to comply with international expectations.

Despite the complexities of the regional landscape, Trump’s visit has signaled a renewed American commitment to economic engagement, military cooperation, and strategic realignment in the Gulf.

Trump’s visit to Riyadh has reignited a multifaceted U.S.-Saudi partnership at a critical juncture for both nations. While traditional defense and energy agreements remain core components of the relationship, the evolving focus on AI, green technology, infrastructure, and diplomacy marks a broader transformation in how the two powers engage.

As Trump continues his regional tour, the outcomes from this landmark visit will shape not only bilateral relations but also the balance of influence across the Middle East in the years to come. The scale of the agreements signed and the personalities involved underline the significance of what may prove to be a defining moment in U.S.-Gulf relations in the 21st century.