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TWTW Note
US-Saudi Arabia Reset: Crown Prince meets the American President and sign key agreements on Defense, AI, Critical Minerals

  R Preetha
24 November 2025

What happened? 
On 18 November, President Trump hosted Saudi Crown Prince Mohammed bin Salman (MBS) in Washington, marking the Crown Prince’s first visit to the capital in more than seven years. President Trump announced Saudi Arabia's designation as a “major non-NATO ally.” He also approved the future sale of up to 48 F-35 stealth fighter jets to Riyadh, and a purchase of 300 US-made tanks. MBS pledged to increase Saudi investment in the US from previously announced USD 600 billion to nearly USD 1 trillion.

According to a White House fact sheet, the US and Saudi Arabia signed a “Joint Declaration on the Completion of Negotiations on Civil Nuclear Energy Cooperation.” Both sides also agreed on a Critical Minerals Framework, and an AI Memorandum of Understanding. President Trump and the Crown Prince also signed the “U.S.-Saudi Strategic Defense Agreement (SDA).” This will secure “new burden-sharing funds from the Saudi Arabia to defray U.S. costs, and affirming that the Kingdom views the United States as its primary strategic partner.”

On 19 November, the two sides formalized several pacts during the US-Saudi Investment Forum attended by key business leaders. Saudi Aramco (the Saudi Arabian Oil Company) signed 17 deals worth over USD 30 billion. President Trump said USD 270 billion in deals are being signed at the Forum.  

What is the background? 
First, a note on recent US-Saudi Arabia relations and tensions. In recent times, the US-Saudi relations oscillated between convergence and strain. Under President Trump, the relationship was well prioritized, he chose Riyadh for his first foreign trips in both terms (2017 and 2025), securing major arms and investment deals. In 2018, relations were challenged over the murder of Jamal Khashoggi, killed by Saudi agents in Istanbul. This along with Saudi conduct in Yemen, led to US criticism over human rights. Former President Joe Biden guaranteed to make Saudi Arabia a "pariah” over these issues, however, energy and security needs led to his 2022 Jeddah visit and gradual re-engagement. Trump’s return further reset the partnership, with a USD 600 billion Saudi investment pledge in May. This week’s visit by MBS, his first since 2018, adds to this arc, with Trump’s statements such as the Crown Prince "knew nothing about” the Khashoggi murder, aiming to rehabilitate MBS in the backdrop of mutual strategic and economic interests. 

Second, the economic, political and technological collaboration. During the meeting, Saudi Arabia was designated “a major non-NATO ally.” This means expedited access to US military hardware and cooperation, with fewer licensing requirements for advanced American weapons systems. Further, under Vision 2030, Riyadh seeks to diversify away from oil, attract high-tech investment, and position itself as a logistics, AI and green-transition hub. For the US, Saudi capital and critical minerals cooperation support supply-chain resilience and its broader competition with China. 

Third, the Abraham Accords, Gaza, US interests, and Saudi Arabia’s leverage. President Trump has repeatedly shown his interest for Saudi Arabia to join the Abraham Accords. During the meeting, Trump and MBS hinted at potential movement on this front, although no specifications or timelines were defined. The Kingdom has consistently linked normalisation with Israel to the Arab Peace Initiative framework. In recent years, Riyadh has increasingly used its role in Gaza and Iran to project regional leadership, while Washington has sought to anchor Saudi Arabia more firmly within a US-led regional security and diplomatic architecture.

What does it mean? 
First, a strategic reset in US–Saudi relations. Security, investment, technology and diplomacy are bundled into a transactional framework: advanced defence systems, AI agreements and civil nuclear cooperation in return for substantial Saudi capital, critical minerals partnerships and alignment on regional issues such as Iran and Gaza. This meeting shows that Washington seeks Riyadh backing for energy stability, supply-chain resilience and leverage over China and regional issues. For Saudi Arabia, close ties with the US is important for its security and Vision 2030 objectives, even as it cultivates relations with other major powers.

Second, a shift in the Middle East military balance. The decision to sell stealth F-35 fighter jets to Saudi Arabia, marking the first such US sale to the kingdom, shows a significant policy shift. This shift also echoed in Trump’s statement: “They’ve been a great ally. Israel has been a great ally, and we’re looking at that exactly right now. But as far as I’m concerned, I think they are both at a level where they should get top of the line.” 


About the author
Preetha R is a postgraduate student at Stella Maris College, Chennai.

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