On May 13, 2025, during President Trump's visit to Saudi Arabia, the two countries signed a nearly $142 billion arms sale agreement, which the White House referred to as the 'largest arms sale agreement in history.' This agreement is part of a broader $600 billion investment package that Saudi Arabia agreed to make in the U.S. The relevant introduction is as follows:
Agreement details: Air force upgrades and space capability development: Saudi Arabia will upgrade its F-15SA fighter jets, potentially bringing them close to the F-15EX standard. Transport aircraft such as the C-130J-30 'Hercules' and C-17 'Globemaster III' may also be reconfigured for special missions and upgrade navigation, electronic warfare, and communication systems.
Missile defense: The agreement includes expanding and enhancing the Patriot PAC-3 MSE system, which may increase the active electronically scanned array (AESA) radar, advanced fire control software, and integration with other layered defense systems. It may also involve the development of integrated command systems and networked sensor platforms to support Saudi Arabia's space surveillance ambitions.
Maritime and coastal security: The Royal Saudi Navy may enhance its coastal surveillance and energy infrastructure protection capabilities through the procurement of sensors, unmanned surface systems, and advanced monitoring technologies.
Land and border security: The agreement involves the modernization of armored forces, border protection, and the defense of strategic infrastructure, which may include armored vehicles, ground surveillance radar, anti-tank missile systems, and short-range defense solutions against emerging threats such as armed drones and unconventional incursions.
Information and communication systems: This covers encrypted communication networks, battlefield data links, and cybersecurity technologies to ensure information security and efficient communication in multi-service joint operations.
Support measures: The U.S. will provide comprehensive support to Saudi Arabia, including advanced personnel training, development of military academies, long-term maintenance of delivery systems, and enhancement of military medical services.
Involved companies: More than a dozen U.S. defense giants, such as Lockheed Martin, Raytheon, Boeing, Northrop Grumman, and Palantir, are involved.
Agreement impact: On U.S.-Saudi relations: This marks a new phase of deep binding in the U.S.-Saudi 'oil-security' alliance, further consolidating the two countries' strategic partnership that has lasted for over eighty years. Saudi Arabia has committed to invest over $1 trillion in the U.S., covering areas such as AI infrastructure and clean energy, achieving a deep bundling of security and economic interests.
Impact on the Middle East landscape: This agreement may reshape the geopolitical landscape of the Middle East. Against the backdrop of regional tensions, Saudi Arabia's enhanced military capabilities could affect the regional military balance, impacting neighboring countries like Iran and triggering a series of changes in regional security dynamics.
Impact on U.S. defense companies: Companies such as Raytheon and Lockheed Martin will benefit directly. According to data from the U.S. Defense Industry Association, every $1 billion in arms sales can create 15,000 jobs, and this agreement is expected to generate 2.1 million jobs in the U.S.
Previous arms sales situations and issues
In the $110 billion arms sale agreement signed between the U.S. and Saudi Arabia in 2017, about $95 billion was merely a letter of intent and not a binding purchase commitment. Most of these transactions, such as the $13.5 billion purchase of the THAAD missile defense system from Lockheed Martin, ultimately came to nothing. The weapons provided by the U.S. to Middle Eastern countries are not only expensive but also come with numerous political stipulations, and delivery speeds are often delayed.
U.S.-Saudi arms sales are influenced by various factors, including regional security situations, U.S. domestic politics, and the strategic interests of both countries. Additionally, the implementation of arms sale agreements faces uncertainties due to negotiation progress and changes in the international situation.
