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Trump and Saudi Prince Sign Strategic Economic Partnership

On May 13, 2025, President Trump and Crown Prince Mohammed bin Salman signed a wide-ranging economic partnership that spans energy, defense, mining, and AI technology.

Claire Monroe

Published May 13, 2025

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President Donald Trump speaking in front of an American flag
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In a significant diplomatic move, President Donald Trump and Saudi Crown Prince Mohammed bin Salman (MBS) signed a $600 billion strategic economic partnership agreement during Trump’s visit to Riyadh.

The ceremony, marked by handshakes and applause from both delegations, represents what Saudi officials are calling a turning point in bilateral relations.

Personal diplomacy drives business relations

The meeting highlighted the personal rapport between Trump and MBS, with observers noting their positive body language. This aligns with Trump’s diplomatic approach, which often emphasizes personal relationships and transactional business dealings.

“We like each other a lot,” Trump reportedly said during the visit, as stated by Al Jazeera, underscoring his preference for building diplomatic ties through personal connections.

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Historic agreement spans multiple sectors

The newly signed partnership covers several key areas, including energy, defense, mining and mineral resources, judicial and law enforcement cooperation, and space monitoring.

During the ceremony at the Royal Court in Riyadh, the countries also inked letters of intent focused on National Guard training and modernizing the Saudi armed forces’ capabilities.

The partnership extends into emerging fields, with artificial intelligence being a notable area of cooperation.

Saudi Arabia has become one of the world’s largest investors in AI technology, and several prominent US AI figures, including OpenAI CEO Sam Altman, were present in Riyadh during Trump’s visit.

According to reports, deals being negotiated include a $9 billion partnership between US and Saudi firms to mine and process critical minerals used in advanced manufacturing, energy, and defense sectors for export to the United States.

Saudi Arabia positioning as regional powerhouse

For Saudi Arabia, Trump’s visit represents a unique opportunity to cement its position as a key regional player.

The kingdom is leveraging its status as a leading oil exporter with significant influence over global supply and prices — a factor of particular importance to the Trump administration, which has expressed interest in lower oil prices.

By hosting Trump and inviting Gulf Cooperation Council leaders to join discussions, Riyadh is signaling its ambition to become the primary diplomatic address for regional problem-solving.

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A changing Saudi Arabia welcomes Trump

This visit takes place in a markedly different Riyadh than during Trump’s 2017 trip. The kingdom has implemented social reforms and made substantial investments in various sectors, creating a more open atmosphere for international partnerships.

“Saudi Arabia still sees the US as their main security partner and trading partner,” noted Abdulaziz Alghashian, director of research at the Riyadh-based Observer Research Foundation Middle East, as stated by Al Jazeera.

Regional implications of strengthened ties

While focused primarily on economic cooperation, the partnership naturally carries significant geopolitical implications.

Discussions between the leaders also addressed regional issues, including the need for a permanent ceasefire in Gaza and the situation in Syria.

Trump’s Middle East tour, with expected visits to Qatar and the United Arab Emirates following his stop in Saudi Arabia, appears poised to reshape US relations in the Gulf region while advancing economic interests for both sides.

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