A series of ripples has been generated through the stream of global politics with Donald Trump’s recent visit to Saudi Arabia now marking a decisive turning point in Middle Eastern geopolitics and, in dramatic fashion, promising to renew the U.S.-Saudi alliance. The trip that ended on May 12, 2025, thus resulted in a number of game-changing agreements – a prominent one being the $142 billion arms deal and another broader $600 billion economic and defense investment package of sorts.

The $142 billion arms deal… is the largest bilateral military cooperation in the history of the U.S.

Capitalizing on the potential of $1 trillion Saudi investment in the next 4 years, this diplomatic occurrence can change the complexion of regional dynamics, defense postures, and global strategic positions for decades. The $142 billion arms deal between Washington and Riyadh is the largest bilateral military cooperation in the history of the U. S. It includes the whole spectrum of defense mechanisms, ranging from state-of-the-art missile defense platforms, transfers of air and space technologies, to maritime security upgrades and intelligence infrastructure.

Even though it has long been speculated that Saudi Arabia would purchase the U.S. F-35 stealth fighter jets, the same deal is stunted by a short hair from confirming that transfer. However, this mammoth military package is stark evidence of the level of strategic trust as well as interoperability these two nations can draw from.

For Saudi Arabia this is not only a considerable reinforcement for its military modernization, but it is also a security reassurance in the increasing threats from Iran and the deteriorating situation in Yemen. Besides defense, the bigger $600 billion investment deal goes into the civilian and high-tech domain, where the U.S. and Saudi Arabia will cooperate in energy, aviation, artificial intelligence, and advanced semiconductor production.

The Saudi investment in U.S. semiconductors is especially impressive considering Crown Prince Mohammed bin Salman’s ambition to point the Kingdom in a post-oil direction towards AI and next-generation technology. This will fall in line with Saudi Arabia’s Vision 2030 plan that focuses on diversifying the country’s economic base, cutting the amount of oil revenues. President Trump’s focus on the above deals being “America First but not America Alone” emphasizes the pursuit of transactional diplomacy on the part of his administration, wherein strategic partnerships are put in terms of economic incentives and security guarantees.

In his press conference in Riyadh, Trump said that Saudi Arabia has promised to invest anything between 0.5 to 1 trillion dollars into the United States over the next four years especially the industries that are related to producing defense items and those that are related to critical infrastructure. This large scale does not only serve to reinforce Trump’s domestic political story of jobs and industrial resuscitation but also aids to boost the soft power and economic clout the U.S has across the region. The timing and symbolics of the visit are also of utmost importance.

Saudi Arabia is crafting a new identity for itself, culturally grounded yet globally connected.

The Middle East undergoes many drastic changes – from changing alliances and Abraham Accords to increasing confrontations between Iran and the ongoing humanitarian crisis in Gaza. Trump’s visit- and the sheer number of deals signed – sends a clear signal to regional players, and especially Tehran. His sharp statements that “Iran will never have a nuclear weapon” further support the attitude of Washington to oppose Iranian aspirations – both nuclear and geopolitical. In this light therefore, the arms deal can be viewed of beyond being just a defense pact, but as a part of a larger strategy in deterring Iran and re-assuring key Gulf allies.

This is one of the more perceptional but strategically important lessons of this visit, namely the boost to Crown Prince Mohammed bin Salman’s (MBS) regional posture. Marking this hype and economically massive alliance with the US, MBS seems to be trying to elaborate on an offensive, proactive approach towards the rest of the Gulf countries. Through the projection of Saudi Arabia as the main interlocutor with Washington, MBS is boosting the image of Riyadh as a leader in the GCC and as the node of power, influence, and economic strength.

This might make for a more centralized cooperation of the Gulf states under Saudi leadership, but could also increase tensions with the states such as Qatar and UAE, which have become more and more inclined to independently pursue their foreign policies. The size of defense and tech agreements does not only boost the Saudi capacity but also sends a message to the neighboring countries that Riyadh is not only strong on the military grounds but also diplomatically while shifting the balance of power in the Gulf internally to MBS’s side. Nevertheless, the ramifications go further than the mere issue of security concerns.

The agreements also play a part on the existing debate on Israel-Saudi normalization. Although the administration of Trump was eager to promote more Arab-Israeli rapprochement after the Abraham Accords, Saudi Arabia holds her ground. Saudi officials have further restated that normalization with Israel will not be made without a sovereign Palestinian state with East Jerusalem as its capital. This conditionality speaks volumes of Riyadh’s struggle to reconcile its blooming strategic reckoning with the historic status of leadership within the Muslim world. Saudi leaders’ diplomatic rhetoric on this visit implies that there was an intentional attempt to keep up regional face while using U.S. prominence to further long-term strategic interests.

The other important aspect of Trump’s voyage is Saudi Arabia’s becoming a regional power broker and global investor. The Kingdom is increasingly becoming not only a receiver of the Western assistance, but an active player that can determine the course of international negotiations. From its mediation activities in Gaza to its forays in to the world of mineral and rare earth investments, this is Saudi Arabia crafting a new identity for itself  that of a modern state that is culturally grounded yet globally connected.

This is not merely economic investment… they are geostrategic assets.

Trump’s enthusiastic welcome, and a size, however, of the accords signed, reflect the recognition of this changing Saudi role. In addition, this visit exposes the conflation between global supply chains and geopolitical power.

In drawing Saudi investment in rare earth minerals and semiconductors, U.S. is aiming at decreasing its reliance on China and establishing dominance in AI and defense sphere through technology. These are not merely economic investments in a world that is becoming more and more characterized by the struggle for strategic resources and digital infrastructure. they are geostrategic assets. Summing up, Donald Trump’s visit to Saudi Arabia in 2025 is not only the high-profile diplomatic action, but also much more.

It reminds the world that the American-Saudi relations are strong and that both allies and rivals should know that Washington is still interested in advancing its interests in the Middle East. With huge economic packages, defense commitments and strategic dialogues the visit has paved the way for the bilateral engagements imbued in the mutual interests and shared regional vision. Since the Middle East is at a crossroads, these agreements might very well define the next chapter of the regional order (where security, economy, diplomacy, leadership competition between Gulf states are all closely knit up).

Disclaimer: The opinions expressed in this article are solely those of the author. They do not represent the views, beliefs, or policies of the Stratheia.