US President Donald Trump received a royal welcome in Riyadh on Tuesday as he launched a high-profile tour of the Gulf aimed at cementing multi-billion-dollar economic partnerships with key regional allies.
The visit, part of a three-nation swing through Saudi Arabia, Qatar, and the United Arab Emirates, marks Trump’s latest push to prioritise business ties and investment over diplomatic overtures to resolve long-standing regional conflicts.
During a ceremonial signing with Saudi Crown Prince Mohammed bin Salman, President Trump formalised a strategic economic partnership that spans the energy, mining, and defence sectors. The leaders inked the deal in an opulent setting, with senior officials and business executives looking on and applauding.
Donald Trump and Saudi Crown Prince Mohammed bin Salman have signed a $142bn (£107bn) defence agreement, under which the United States will supply Saudi Arabia with state-of-the-art warfighting equipment. In return, Saudi Arabia has pledged to invest $20bn (£15bn) in artificial intelligence initiatives in the US as part of the wider deal.
“We like each other a lot,” President Trump remarked during the bilateral meeting, signalling a close rapport with the Crown Prince. Trump is reportedly seeking up to $1 trillion in investment from Gulf sovereign wealth funds into US industries ranging from manufacturing to technology.
Emerging from Air Force One to an elaborate welcome, Trump was joined by a delegation of prominent US business leaders, including Tesla and SpaceX CEO Elon Musk and OpenAI CEO Sam Altman.
According to The Washington Post, key business agreements are being finalised during the trip. Among them is a $9 billion deal involving US firms and Saudi partners to extract and process critical minerals essential for advanced manufacturing and defence applications.
Another expected agreement will see UAE-based AI firm G42 and Saudi startup Humain gain access to cutting-edge American AI chip technology.
Trump’s Gulf tour continues with stops in Doha and Abu Dhabi, where further commercial partnerships are expected to be announced.
