By Mike Stone and Pesha Magid
WASHINGTON/RIYADH (Reuters) -The United States is poised to offer Saudi Arabia an arms package worth well over $100 billion, six sources with direct knowledge of the issue told Reuters, saying the proposal was being lined up for announcement during U.S. President Donald Trump’s visit to the kingdom in May.
The offered package comes after the administration of former President Joe Biden unsuccessfully tried to finalize a defense pact with Riyadh as part of a broad deal that envisioned Saudi Arabia normalizing ties with Israel.
The Biden proposal offered access to more advanced U.S. weaponry in return for halting Chinese arms purchases and restricting Beijing’s investment in the country. Reuters could not establish if the Trump administration’s proposal includes similar requirements.
The White House and Saudi government communications office did not immediately respond to requests for comment.
A U.S. Defense official said: "Our defense relationship with the Kingdom of Saudi Arabia is stronger than ever under President Trump’s leadership. Maintaining our security cooperation remains an important component of this partnership and we will continue to work with Saudi Arabia to address their defense needs."
In his first term, Trump celebrated weapons sales to Saudi Arabia as good for U.S. jobs.
Lockheed Martin Corp (NYSE:LMT) could supply a range of advanced weapons systems including C-130 transport aircraft, two of the sources said. One source said Lockheed would also supply missiles and radars.
RTX Corp, formerly known as Raytheon Technologies (NYSE:RTX), is also expected to play a significant role in the package, which will include supplies from other major U.S. defense contractors such as Boeing Co (NYSE:BA), Northrop Grumman Corp (NYSE:NOC) and General Atomics, said four of the sources.
All the sources declined to be named due to the sensitivity of the matter.
RTX, Northrop and General Atomics declined to comment. Boeing did not immediately respond to a request for comment. A Lockheed Martin spokesperson said foreign military sales are government-to-government transactions. Questions about sales to foreign governments are best addressed by the U.S. government.
Reuters could not immediately establish how many of the deals on offer were new. Many have been in the works for some time, two of the sources said. For example, the kingdom first requested information about General Atomics’ drones in 2018, they said. Over the past 12 months, a deal for $20 billion of General Atomics’ MQ-9B SeaGuardian-style drones and other aircraft came into focus, according to one of the sources.
Several executives from defense companies are considering traveling to the region as a part of the delegation, three of the sources said.
The U.S. has long supplied Saudi Arabia with weapons. In 2017, Trump proposed approximately $110 billion of sales to the kingdom.
As of 2018, only $14.5 billion of sales had been initiated and Congress began to question the deals in light of the murder of Saudi journalist Jamal Khashoggi.
In 2021, under Biden, Congress imposed a ban on sales of offensive weapons to Saudi Arabia over the Khashoggi killing and to pressure the kingdom to wind down its Yemen war, which had inflicted heavy civilian casualties.
Under U.S. law, major international weapons deals must be reviewed by members of Congress before they are finalised.
The Biden administration began to soften its stance on Saudi Arabia in 2022 after Russia’s invasion of Ukraine impacted global oil supplies. The ban on offensive weapons sales was lifted in 2024, as Washington worked more closely with Riyadh in the aftermath of Hamas’ Oct. 7 attack to devise a plan for post-war Gaza.
A potential deal for Lockheed’s F-35 jets, which the kingdom has been reportedly interested in for years, is expected to be discussed, three of the sources said, while downplaying the chances for an F-35 deal being signed during the trip.
The United States guarantees that its close ally Israel receives more advanced American weapons than Arab states, giving it what is labeled a "Qualitative Military Edge" (QME) over its neighbors.
Israel has now owned F-35s for nine years, building multiple squadrons.