US finalizes $142 billion arms deal with Saudi Arabia, marking historic defense agreement

In a landmark move, the United States has agreed to sell nearly $142 billion worth of arms to Saudi Arabia, marking the largest defense cooperation package in U.S. history. The deal was finalized during President Donald Trump’s visit to Riyadh, underscoring deepening military ties between Washington and the kingdom.

According to a White House fact sheet, the expansive agreement spans multiple domains of defense—air and missile systems, aerospace advancements, maritime security, and military communications. Over a dozen major U.S. defense contractors are expected to benefit from the deal, reflecting Washington’s strategic push to solidify its defense industry footprint in the Gulf.

While the full list of equipment has not been disclosed, prior reports indicated that Lockheed Martin may provide C-130 transport aircraft, missiles, and radar systems. Executives from other defense giants such as RTX (formerly Raytheon), Boeing, and Northrop Grumman were also reportedly in Saudi Arabia around the time of the signing, although the White House did not confirm specific company involvement.

This agreement revives interest in a broader U.S.-Saudi military partnership that has seen fluctuations in recent years. Back in 2017, Trump proposed an estimated $110 billion in arms sales to Riyadh. Yet by 2018, only a fraction—around $14.5 billion—had materialized, with congressional skepticism mounting in the wake of the Jamal Khashoggi killing and growing concerns over human rights.

This new arms deal signals a shift, potentially restoring momentum to U.S. defense exports in the Middle East. Saudi Arabia remains America’s single largest arms customer, and this agreement could unlock additional contracts across multiple military sectors.

One unresolved element is the kingdom’s long-standing interest in Lockheed’s F-35 stealth fighter jets. While discussions between U.S. and Saudi officials have included this advanced aircraft, Washington has not approved its sale. U.S. policy has historically upheld Israel’s qualitative military edge, a commitment that limits the transfer of high-end American military technology to other regional players. Israel has operated the F-35 since 2016 and continues to expand its fleet.

If Saudi Arabia were to eventually gain access to the F-35, it would become only the second Middle Eastern nation to operate the platform—a move that could significantly reshape regional military dynamics. However, for now, that remains speculative.

For U.S. defense contractors, the deal could bring long-term financial upside and reinforce America's role as the region’s primary arms supplier. It also comes at a time when global defense spending is accelerating, offering both strategic and economic leverage for U.S. policymakers.

Summary:

The U.S. has agreed to a historic $142 billion arms deal with Saudi Arabia, encompassing a wide range of defense technologies. The agreement, signed during a high-profile visit by President Trump to Riyadh, cements Saudi Arabia’s status as the top buyer of American military equipment. While the inclusion of F-35 jets remains uncertain, the deal strengthens U.S. defense industry prospects in the Gulf and signals a renewed chapter in U.S.-Saudi military cooperation.