United States Announces Nearly $142 Billion Defense Sales Package For Saudi Arabia
The United States announced Tuesday that it had signed an agreement for a defense sales package worth nearly $142 billion with Saudi Arabia, with the deal struck alongside a “commitment” by Saudi Arabia to invest $600 billion in the US.
A fact sheet issued by the White House says the “largest defense sales agreement in history” covers “air force advancement and space capabilities, air and missile defense, maritime and coastal security, border security and land forces modernization, and information and communication systems upgrades”.
Also included in the package is “extensive training and support to build the capacity of the Saudi armed forces”, including enhancement of Saudi service academies and military medical services. The White House adds that the agreement would “open the door” for expanded U.S. defense industry participation and long-term sustainment partnerships with Saudi industry.
In a television interview on the Saudi state-run Al Ekhbariya television channel broadcast earlier on Tuesday, Boeing Defense, Space & Security director of operations Michael Strosneider said the company had a “world class, compliant and compelling” localization package offered to Ridayh if it purchased the F-15EX. “We’re looking at this from not such a transactional lens, we’re looking at bringing the Kingdom of Saudi Arabia into the global supply chain for the F-15EX so that we can look at ways to transfer technology so that they become specialists in the production and manufacturing environment, and they become part of the global supply chain and the F-15EX global force demand.”
Boeing’s airliner business closed a sale for 20 Boeing 737-8 passenger airliners for AviLease totaling $4.8 billion under the $600 billion investment deal, with an option for 10 more. The Ridayh-based aircraft lessor is owned by Saudi Arabia’s Public Investment Fund, and currently leases 200 aircraft to 48 airlines around the world as of writing.
As part of the $600 billion investment package, Saudi Arabia will form a $5 billion New Era Aerospace and Defense Technology Fund in partnership with American investors, with the White House saying it and other sector-specific funds will invest “substantial capital into American industries, driving innovation, and creating high-quality jobs across the United States”.