The United States is preparing to offer Saudi Arabia an arms package valued at over $100 billion, Reuters reported citing several sources. This significant military proposal is expected to be announced during President Donald Trump’s visit to the kingdom in May. The arms deal surfaces after President Joe Biden’s administration was unable to conclude a defense agreement with Riyadh. The Biden administration had aimed to forge a comprehensive deal that would have included Saudi Arabia establishing diplomatic relations with Israel.
The proposed arms package under the Trump administration follows previous attempts to secure a defense pact with Saudi Arabia. The Biden administration’s proposal included conditions such as halting Chinese arms purchases and limiting Beijing’s investments in Saudi Arabia. It also promised access to more advanced U.S. weaponry. It remains unclear whether the current offer from the Trump administration carries similar stipulations.
The potential deal could bolster U.S. defense contractors, with Lockheed Martin Corp (NYSE:LMT) poised to provide an array of advanced weapons systems, including C-130 transport aircraft, missiles, and radars. RTX Corp is also anticipated to play a significant role in the arms deal, which is expected to involve contributions from other major U.S. defense firms such as Boeing Co (NYSE:BA), Northrop Grumman Corp (NYSE:NOC), and General Atomics.
This arms package could signify a continuation of the Trump administration’s approach to arms sales with Saudi Arabia, which the president has lauded as beneficial for U.S. employment. However, the White House, Pentagon, and the Saudi government’s communications office have not yet issued any comments regarding the pending announcement.
The defense companies involved in the potential deal, including Lockheed Martin, RTX, Northrop Grumman, and General Atomics, have declined to comment on the matter. Boeing has also not responded to inquiries regarding their involvement in the arms package. The sources who disclosed this information have requested anonymity, citing the sensitive nature of the discussions.
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