$100 Billion Contracts: The US to Offer Large-Scale Defense Deal to Saudi Arabia

The US is preparing a large-scale defense contracts package for Saudi Arabia, intending to possibly push Chinese defense companies out of the local market.

Reuters reported on this, citing six sources directly involved in the negotiations.

Donald Trump intends to sign a new $100 billion defense deal with the Saudi Kingdom after the previous administration failed to secure a defense pact that included the normalization of relations between Saudi Arabia and Israel.

The proposal from the former president granted Saudis access to more advanced American weapons in exchange for limiting Chinese investments in the country and the purchase of Chinese arms. However, it is currently unclear whether the new proposal from the Trump administration includes such conditions regarding cooperation with Beijing.

Two sources informed the media that key players in the new deal will include defense giants such as Lockheed Martin and RTX (Raytheon).
Specifically, Lockheed plans to supply C-130 transport aircraft, as well as missiles and radar systems. The deal will also involve companies such as Boeing, Northrop Grumman, and General Atomics.

General Atomics is considering supplying MQ-9B SeaGuardian drones. Negotiations regarding these drones have been ongoing for several years—Saudi Arabia first expressed interest in them in 2018. Recently, discussions have centered on a deal valued at around $20 billion.

Saudi Arabia also continues to show interest in American fifth-generation fighter jets, the F-35, produced by Lockheed Martin. However, according to sources, it is unlikely that this deal will be signed during Trump’s visit. The main obstacle in these negotiations remains the US commitment to guarantee “qualitative military superiority” for Israel over its neighboring states. This means that any weapons provided to Saudi Arabia should not exceed the technical specifications of those provided to Israel.

An official announcement is expected during the planned visit of the US president to Riyadh in May.

During his first term as president in 2017, Donald Trump also offered a defense contract package for Saudi Arabia worth $110 billion. However, as a result of the negotiations, the Saudis only contracted weapons worth $14.5 billion.

After the torture and murder of journalist Jamal Khashoggi at the Saudi Arabian consulate in Turkey, military cooperation with the country sharply ceased. This was also used as leverage to pressure the Saudi government to end its military operation in Yemen. During this period, the country’s cooperation with China significantly increased.

Washington’s position started to shift in 2022 amid the global energy crisis caused by the Russian-Ukrainian war. In 2024, restrictions on the supply of offensive weapons were officially lifted.