During U.S. President Donald Trump’s recent visit to Saudi Arabia, Washington and Riyadh inked a landmark $142 billion defense agreement, heralded by the White House as the largest of its kind in history. The agreement forms part of Saudi Arabia’s $600 billion investment pledge for the U.S. economy and represents a considerable deepening of Saudi-U.S security relations. The expansive deal primarily aims to strengthen Saudi Arabia’s defense capabilities, including upgrading air and missile defense capacity along with modernizing land, maritime and overall security infrastructure. While the deal yields sizable financial returns for Washington, it underscores Riyadh’s push to build up its own domestic military-industrial base—a pillar of its National Vision 2030, which seeks to localize over 50 percent of its defense industry.
Although the two countries’ strategic ties span many decades, the parameters of their security relationship are gradually shifting. Riyadh is moving beyond simple acquisition and towards leveraging its key defense partners’ capabilities to enhance its own. In recent years, Washington has also shown a relative openness to gradually incorporating technology transfer in its strategic agreements. This can arguably be attributed to U.S. efforts to counter the nascent expansion of China’s security footprint in the Middle East and attempts to reassure Saudi Arabia of Washington’s commitments to regional security. As such, the latest deal should be situated against the backdrop of evolving regional and global power dynamics.
Saudi Expands Domestic Defense Capabilities
In 2017, Saudi Arabia established the General Authority for Military Industries (GAMI). Its creation represented an effort to consolidate the kingdom’s defense ecosystem and expand local production. The authority’s mandate extends to the development, regulation and monitoring of Saudi Arabia’s military industries. Among its key partners is the King Abdulaziz Center for Science and Technology, which in 2017 unveiled “Saqr 1,” the first line of Saudi-produced unmanned aerial vehicles (UAVs).
In the same year, Saudi Arabia’s Public Investment Fund (PIF) established the Saudi Arabian Military Industries (SAMI), a state-owned arms manufacturer at the forefront of upscaling the production of Saudi military equipment. Increasing cooperation between SAMI and major regional and global defense players has been instrumental to achieving GAMI’s targets. In 2023, SAMI and Turkish defense company Baykar agreed to locally produce over 70 percent of the Bayraktar Akinci drones supplied to the Saudi military. In 2022, Saudi Arabia’s Advanced Communications and Electronics Systems and China’s China Electronics Technology Group set up a joint venture specialized in the research, development and manufacturing of UAV systems.
Riyadh is also seeking integration in multilateral defense arrangements including the Global Combat Air Program (GCAP) alongside Italy, Japan and the United Kingdom. Discussions remain ongoing for potential Saudi participation in the joint development of sixth-generation fighter jets. Although Saudi Arabia has sought access to Lockheed Martin’s F-35, the U.S. continues to maintain tight restrictions on the export of the fifth-generation fighter jet. Participation in the GCAP, however, could provide Riyadh with the opportunity to co-develop and acquire advanced fighter jets, filling a critical gap in Saudi Arabia’s aerial capabilities.
The kingdom’s multi-pronged approach to diversify and expand its security capacities underscores the evolving nature of Saudi Arabia’s partnerships. Riyadh is diversifying its defense ties, expanding technology transfer from its partners, and leveraging its financial capital to attract the expertise of key global and regional security players.
Washington’s Role in Enhancing Riyadh’s Security Capacities
In recent years, the U.S. has demonstrably contributed to the development of Saudi Arabia’s domestic defense industry. Earlier this month, officials from Lockheed Martin, GAMI and the Arabian International Company for Steel Structures met in Jeddah to mark the completion of the first locally made components of the Terminal High Altitude Air Defense (THAAD) system. This builds on a 2018 U.S.-Saudi agreement for the sale of 44 THAAD launchers to the kingdom. In the Middle East, THAAD systems have only been deployed in two countries—the United Arab Emirates and Israel—making Washington’s agreement for Saudi deployment of the missile defense system notable.
Under Trump, the U.S. has appeared willing to supply regional states with advanced systems and technology. During his first term, for instance, the Trump administration approved the sale of F-35s to the UAE; however, Biden’s administration halted the deal, citing concerns over Abu Dhabi’s security cooperation with Beijing. Requests for access to the F-35 Lightning II have reportedly been key in Saudi-U.S. negotiations; however, neither have confirmed requesting the stealth jets as part of the most recent deal. Saudi’s acquisition of the F-35 is primarily challenged by Israel’s concerns of gradually losing its qualitative military edge (QME) in the region. Despite these tensions, Washington is noticeably extending support to bolster Saudi defense capabilities.
Last year, U.S. defense conglomerate RTX Corporation, formerly known as Raytheon, and GAMI agreed to expand strategic cooperation through a series of initiatives. These included supporting the production, assembly and testing of Patriot defense system parts in Saudi Arabia. Raytheon will also train Saudi talent to manage, repair and operate Patriot defense systems. As part of the 2025 U.S.-Saudi defense agreement, Riyadh is in discussions with General Atomics to purchase 200 MQ-9B drones that would make Saudi one of only two Middle Eastern countries, alongside Qatar, to gain initial approval to operate the drone. These wide-reaching efforts reinforce Washington’s growing openness to support the integration of Saudi Arabia into global defense markets, upskilling Saudi talent to operate key U.S. defense systems and technologies and aid the kingdom’s economic diversification ambitions.
Despite shared interests between Riyadh and Washington, there are financial challenges to implementing the full scale of the 2025 defense agreement. The committed $142 billion represents 176 percent of Saudi’s 2024 defense budget.
Washington’s expanded role in supporting the development of a domestic Saudi defense industry may also be used to offset U.S. reluctance to commit to a mutual defense pact, which the Saudis have sought. After the Yemen-based Houthis attacked critical Aramco oil facilities inside Saudi Arabia in 2019, Riyadh was dismayed by the lukewarm response from its key defense partner in Washington. Although the U.S. wants to re-channel resources to its interests in the Asia-Pacific, it is keen not to lose its influence in the Gulf. By aiding the development of local capacity, Washington can uphold its commitment to regional security.
A New Era of U.S.-Saudi Defense Cooperation?
Washington has long served as Saudi’s primary defense partner, and recent developments further highlight the strength and comprehensiveness of Saudi-U.S. security ties. Between 2020 and 2024, the Stockholm International Peace and Research Institute (SIPRI) reported that the U.S. accounted for over 75 percent of Saudi Arabia’s arms imports, and the Gulf country is also the largest customer for U.S. arms. However, today’s highly competitive defense landscape and Riyadh’s accelerating efforts to enhance its strategic autonomy are gradually reshaping the role of the U.S. in regional security, shifting from mere provision to supporting the development of local technology, talent and supplies.
