Last Saturday, US Pres. Donald Trump made his debut to the world stage as he ushered the start of a new era regarding the relations of Saudi Arabia with the US. The US President signed a “strategic vision.” This joint agreement included an astounding $110 billion arms deal for US, as well as other new investments the administration claims to bring thousands of jobs to the American people.
“It sure was a great day,” said Pres. Trump. He also cited that there will be tremendous investments within the country. “Jobs, jobs, jobs for the US.”
The initial details that were released are minimal. However, we know that the agreements that were signed by both parties included a letter of intent by the United States to support the defense needs of Saudi Arabia, with sales of tanks, naval ships, and other vehicles. Earlier administrations had the same subject of agreements. Pres. Trump, however, added a couple of new items that hardly passed the stage of discussion including the THAAD missile defense system.
Other things that were guaranteed by the signed agreements were the airborne intelligence-gathering modernization and cyber defense of Saudi Arabia. The agreements also intended to secure the borders.
Saudi Arabia is the first stop of Trump’s first trip abroad. It’s also the busiest as he’s due to appear on at least three summits within two days.
According to an expert in US-Saudi relations, Ahmed Alibrahim, there is an economic depth with Trump’s visit to Saudi Arabia.
The deals are sure to cut both ways for the two countries as they will provide good business to American firms and investment to Saudi Arabia. Saudi Arabia sees these agreements as urgent as it plans to break the country’s addiction to oil in 10 to 13 years from now.
According to the Finance Minister of the Kingdom, Mohammed Al-Jadaan, there’ll be investments and employments in both countries.
“Everyone will see it as soon as the deals and agreements are announced,” said Al-Jadaan.
Saudi Arabia is US’s largest trading partner in the Middle East as both exchange goods that were worth $35 billion in 2016 alone.
A large quantity of the exchange is oil as Saudi Arabia is among the biggest exporters of oil to America. Military equipment also accounts for a huge chunk of trade for both countries. Because of the recent deals made by Pres. Trump and Saudi Arabia, it’s expected to grow even more in the following years.
The kingdom is among the biggest spenders on defense as it allocates $51 billion to military spending. As for the US, it’s the biggest arms exporter in the world. Almost half of the exports go to the United Arab Emirates and Saudi Arabia.
CEO of a security consultancy, Riad Kahwaji, said that the visit of Trump to the kingdom will ensure the missile defense of Saudi Arabia and bolster its naval and air capabilities.
Trump’s summit with King Salman of Saudi Arabia is also a business forum with senior executives from 45 US companies.