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As countries worldwide scramble to understand how to work with President Donald Trump, Saudi Arabia has set an example with its $1.3 trillion investment plans.
Trump announced the Gulf kingdom's spending plans on Thursday and they include purchases of American military equipment. Trump said he plans to head to the world's top oil exporter on the first foreign tour of his second term.
Why it Matters
The Saudi investment, to be made over four years, is a sign of the deepening relationship between the two countries and of Saudi Arabia's importance not only as a pivotal regional player in the Middle East but globally.
The relationship is also personal given the ties between Saudi Crown Prince Mohamed bin Salman, known as MbS, and Trump, which developed during the U.S. president's first term.
"Crown Prince MBS is Trump's king of deal makers," Fawaz Gerges, professor of international relations at the London School of Economics and Political Science, told Newsweek. "There is no one else in the world now who could compete for Trump's attention as MBS does."
What to Know
Saudi Arabia has long been a major player in U.S. defense contracts, with the kingdom depending heavily on American-made weapons and military systems. This reliance on U.S. defense technology could influence the scope of the planned investments.
The United States offers Sunni Saudi Arabia protection against Shiite adversary Iran, particularly at a time both countries are wary of Tehran potentially acquiring nuclear weapons.
Despite criticism of Saudi Arabia and MBS over the killing of journalist Jamal Khashoggi at the Saudi consulate in Istanbul in 2018, the relationship between Trump and MBS remained strong.
Global Stage
Saudi Arabia is now an ever more important diplomatic force on the global stage - in Europe as well as the Middle East.
It was the venue for the first talks between Trump's officials and Russian counterparts last month. The kingdom is hosting a round of U.S.-Ukraine talks next week in Jeddah.
"By maintaining strategic neutrality, Saudi Arabia has positioned itself as a trusted mediator between Russia, Ukraine, and the U.S.," Saudi political analyst Mubarak al-Atee told Newsweek.
The crown prince's relationship with Trump plays a critical role in this dynamic.
Their bond is built on mutual respect and shared interests, especially in terms of business and security. Saudi Arabia continues to seek investment opportunities in U.S. tech sectors, such as Silicon Valley.
Gaza Conflict
A key upcoming test of Saudi influence will be the conflict over Gaza between Israel and Hamas.
Saudi Arabia has held out the prospect of establishing diplomatic ties with Israel under the Abraham Accords that Trump achieved in his first term, but only if there is a clear path to Palestinian statehood — something that remains off the cards more than 500 days after Hamas launched an attack from Gaza into Israel that sparked the bloodiest round of conflict in decades.
"Saudi Arabia views the Israeli occupation as the root cause of regional instability," Atee said.
What People Are Saying
President Donald Trump: "I'm going to Saudi Arabia. I made a deal with Saudi Arabia. I'd usually go to the U.K. first. Last time I went to Saudi Arabia they put up $450 billion. I said well, this time they've gotten richer, we've all gotten older so I said I'll go if you pay $1 trillion to American companies, meaning the purchase over a four-year period of $ 1 trillion and they've agreed to do that. So, I'm going to be going there. I have a great relationship with them, and they've been very nice but they're going to be spending a lot of money to American companies for buying military equipment and a lot of other things."
Fawaz Gerges of the London School of Economics and Political Science: "Saudi Arabia will exercise considerable foreign policy with Trump when it comes to the Middle East."
Saudi political analyst Mubarak al-Atee: "The size of economic transactions, trade and investments between the two countries exceeds $1 trillion by far. The number reflects the trust Saudi Arabia has in the U.S. economy."
What Happens Next
The relationship between the United States and Saudi Arabia only looks to become more important, but key will be progress on the troubles in the Middle East.
About the writer
Amira El-Fekki is a Newsweek reporter based in Dubai. Her focus is reporting on politics and society in the Middle ... Read more