Saudi Arabia has announced a massive $600 billion investment plan targeting the US defense, energy, and technology sectors.
The initiative, revealed during Saudi Crown Prince Mohammed bin Salman’s visit to Washington, aims to bolster the Kingdom’s military capabilities, enhance technological infrastructure, and expand energy projects in line with its Vision 2030 economic diversification strategy.
Defense $142 Billion Arms Deal
A significant portion of the investment will fund a record-breaking $142 billion arms deal, marking the largest military purchase in US history.
The agreement includes advanced military equipment and defense systems aimed at modernizing Saudi Arabia’s armed forces.
Key beneficiaries of the deal are expected to be US defense giants like Lockheed Martin, Raytheon, and Boeing.
Energy Strategic Investments in Clean Tech
Saudi Arabia plans to ramp up investments in the US energy sector, focusing on renewable projects such as solar and wind farms, as well as LNG and hydrogen technologies.
The Kingdom also seeks to strengthen strategic partnerships in oil reserves and clean energy infrastructure, aligning with global decarbonization efforts.
Technology AI and Data Infrastructure Expansion
In the tech sector, the focus will be on AI and data infrastructure, with several major partnerships announced:
- Nvidia: Will supply 18,000 Blackwell GPUs to Saudi sovereign wealth fund-backed Humain, aimed at accelerating AI research and data processing capabilities.
- Amazon Web Services (AWS): AWS will establish a $5 billion “AI Hub” in Saudi Arabia, positioning the Kingdom as a regional AI powerhouse.
- Google: Google is launching a $100 million fund to support AI startups in the MENA region, including Saudi Arabia, to foster innovation in emerging technologies.
Strategic Objectives and Impact
The massive investment is part of Saudi Arabia’s strategic push to reduce its dependency on oil and become a global player in defense, technology, and clean energy.
It also seeks to deepen economic ties with the US while positioning itself as a regional tech and defense hub.
Challenges and Risks
While the White House has framed the move as a strategic economic partnership, analysts warn that geopolitical tensions, regulatory hurdles, and financial risks could impact the scale and speed of the investment.
Additionally, the focus on sensitive sectors like AI and defense could draw scrutiny from US lawmakers and international watchdogs.
