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The Print
18-05-2025
- Politics
- The Print
US, Saudi Arabia have discussed Riyadh's potential purchase of F-35 jets
'(Qualitative Military Edge) with Israel has come up,' the second source said, referring to U.S. guarantees that Israel receives more advanced American weapons than Arab states. However, it is not clear if Washington would permit the kingdom to move forward with a purchase that would give Saudi Arabia an advanced weapon used by close U.S. ally Israel, one of the sources said. RIYADH (Reuters) – The United States and Saudi Arabia have discussed Riyadh's potential purchase of Lockheed's F-35 jets, two sources briefed on discussions told Reuters, referring to a military aircraft that the kingdom has reportedly been interested in for years. The sources spoke to Reuters on condition of anonymity. Israel has owned F-35s for nine years, building multiple squadrons. Governments in the Gulf have long sought the most advanced fighter jet, built with stealth technology allowing it to evade enemy detection. If the U.S. did approve the transfer, Saudi Arabia would be only the second Middle East state after Israel to operate F-35 fighters. During Tuesday's visit by U.S. President Donald Trump to Riyadh, the U.S. is poised to offer the kingdom an arms package worth well over $100 billion, six sources with direct knowledge of the issue told Reuters previously. (Reporting by Pesha Magid in Riyadh and Mike Stone in Washington. Editing by Mark Potter) Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibility for its content.
Yahoo
16-05-2025
- Business
- Yahoo
Beyond the headlines: explaining Trump's Gulf 'trillions'
By Pesha Magid, Manya Saini, Andrew Mills RIYADH/DOHA (Reuters) -U.S. President Donald Trump was wrapping up his Gulf tour on Friday having secured what the White House says is over $2 trillion for the U.S. economy in combined deals. How that number was calculated is unclear. Based on a Reuters tally of all the specific deals announced, the total value is over $700 billion. But deal inflation is not unusual on any major visit, let alone one by a U.S. president who has long prided himself as an expert dealmaker. The trip included big orders of Boeing planes, deals to buy U.S. defence equipment, data and technology agreements and other contracts. But financial experts and diplomats say the headline figures have been padded out in both sides' desire to showcase the extent of their cooperation. Of the corporate agreements worth up to $549 billion during the Trump's Gulf tour, many were non-binding memorandums of understanding, according to a Reuters analysis. The defence sales agreed with Saudi Arabia and Qatar took the overall tally close to $730 billion, by Reuters' calculations. Reuters could not independently verify whether additional agreements were signed without public disclosure. "The amounts are inflated, possible spending is counted as actual - and most of the solid deals ... would have happened irrespective of who was in the White House," said Justin Alexander, Director of Khalij Economics. During his first term, Trump said Saudi Arabia had agreed to $450 billion in deals with the U.S., but actual trade and investment flows amounted to less than $300 billion between 2017 to 2020, according to data compiled by the Arab Gulf States Institute. "DEALMAKER IN CHIEF" In response to a question about the figures, White House spokeswoman Anna Kelly told Reuters: 'President Trump is the Dealmaker in Chief, and these trillions of dollars in economic agreements are great news for American companies and workers. The President is quickly delivering on his promises to Make America Strong and Wealthy Again." A Qatari official reached by Reuters did not provide comprehensive details about Doha's commitment to Washington, and Saudi and UAE officials did not immediately respond to requests for details. Memorandums of understanding are less formal than contracts and do not always turn into cash transactions. Saudi Aramco, for example, announced it had signed 34 deals with U.S. companies worth up to $90 billion on AI infrastructure and other areas. But most of the tie-ups were non-binding MoUs without a value attached. Aramco's agreement to buy 1.2 million tonnes of LNG per year for a 20-year term from NextDecade had already been announced months earlier, but was still included in Wednesday's tally. The White House said agreements signed with Qatar's Emir Sheikh Tamim bin Hamad Al-Thani would "generate an economic exchange worth at least $1.2 trillion", and included a $96 billion sale to Qatar Airways. But it did not offer a comprehensive breakdown A Qatari official said Qatar's sovereign wealth fund had made an "economic pledge" to invest $500 billion in the U.S. economy over the next 10 years, but that this did not yet include anything concrete. "If the past is precedent, promised deals that have no real return on investment will eventually be shelved after having served their political purpose," said Firas Maksad, managing director at consulting firm Eurasia Group. On the defence side, Washington signed a $142 billion arms package with Saudi Arabia covering purchases from more than a dozen U.S. companies, and what Trump said was a $42 billion defence deal with Qatar. During his first term, Trump celebrated an announcement of approximately $110 billion of arms sales during his visit to Saudi Arabia. But such deals extend over many years and are hard to track closely. 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. BEYOND THE NUMBERS Despite the vagueness of the commitments and timelines, the news has boosted some market stocks. Deutsche Bank attributed a 4.16% rise in Nvidia on Wednesday to the MoU announced by Saudi state oil giant Aramco. And there were concrete new deals for U.S. companies. Qatar Airways' order for 160 Boeing jetliners with GE Aerospace engines is worth $96 billion. And Abu Dhabi's Etihad Airways will spend $14.5 billion to buy 28 Boeing aircraft with GE engines. Boeing shares closed up 0.64% on Wednesday after the Doha reveal. But some of the real gains of Trump's tour lie beyond the raw numbers. Most importantly, the three Gulf countries have secured U.S. support for files they see as key. Saudi Arabia is moving closer to its long-held aspiration to develop a civil nuclear energy industry, which Trump has delinked from normalising relations with Israel, a major win for the kingdom. The UAE has signed a framework that puts it on a pathway to acquiring the advanced semiconductors it wants in order to fulfil its long-held ambition of AI leadership. And Qatar received Trump's assurance that the U.S. would protect it if it ever came under attack. "I think there is a wider symbolic dividend here," said Hasan Alhasan, senior fellow for Middle East policy at the International Institute for Strategic Studies. "While many of the U.S.'s traditional partners and allies have had a particularly tense few months of relations with the U.S., trying to navigate Trump's economic policies and his controversial approach to the Russia-Ukraine war, here are the Gulf States concluding unprecedented business deals and arms sales and taking their bilateral relationship to the next level."
Yahoo
08-05-2025
- Politics
- Yahoo
Exclusive-Under Trump, Saudi civil nuclear talks delinked from Israel recognition, sources say
By Pesha Magid RIYADH (Reuters) - The United States is no longer demanding Saudi Arabia normalise ties with Israel as a condition for progress on civil nuclear cooperation talks, two sources with knowledge of the matter told Reuters ahead of U.S. President Donald Trump's visit next week. Dropping the demand that Saudi Arabia establish diplomatic relations with Israel would be a major concession by Washington. Under former President Joe Biden, nuclear talks were an element of a wider U.S.-Saudi deal tied to normalisation and to Riyadh's goal of a defence treaty with Washington. The kingdom has repeatedly said it would not recognise Israel without a Palestinian state, frustrating Biden administration attempts to expand the Abraham Accords signed during Trump's first term. Under those accords the United Arab Emirates, Bahrain and Morocco normalised relations with Israel. Progress towards Saudi recognition of Israel has been halted by fury in Arab countries over the war raging in Gaza. The nuclear talks had also stumbled over Washington's non-proliferation concerns. In a possible sign of a new approach, U.S. Energy Secretary Chris Wright said that Saudi Arabia and the United States were on a "pathway" to a civil nuclear agreement when he visited the kingdom in April. "When we have something to announce, you will hear it from the President. Any reports on this are speculative,' U.S. National Security Council spokesman James Hewitt told Reuters in response to a request for comment. Saudi Arabia's government media office did not immediately respond to a request for comment. Even without the normalisation requirement for civil nuclear talks to progress, and despite unpacking the issue from a wider defence treaty, a deal is not yet in close reach, one of the sources said. One sticking point is Section 123 of the U.S. Atomic Energy Act that allows cooperation with other countries developing civil nuclear capabilities but specifies nonproliferation criteria including limiting uranium enrichment. Saudi Arabia's energy minister Prince Abdulaziz bin Salman has said that the kingdom would seek to enrich uranium and sell the product. One of the sources said the kingdom was still not willing to sign a so-called 123 agreement, which would prevent enrichment or reprocessing of plutonium made in reactors - two routes that have the potential to culminate in nuclear weapons. Secretary Wright previously told Reuters a 123 agreement would be a prerequisite to any deal. However, there are several ways to structure a deal to achieve both countries' objectives, Wright has said. One solution being discussed is a "black box" arrangement where only U.S. personnel would have access to a uranium enrichment facility on Saudi soil, the same source said. SELL MORE OIL Riyadh wants to build nuclear generation capacity as it seeks to diversify its economy away from oil. Nuclear power could also help free up more crude barrels for export. Arms control advocates have previously expressed concern about a Saudi nuclear programme because de facto ruler Crown Prince Mohammed bin Salman has said the kingdom would seek to quickly develop nuclear weapons should its regional rival Iran do so. The U.S. and Iran are currently holding talks over Tehran's nuclear programme, which Washington and Western allies say is geared towards producing weapons. Iran insists it is purely for civil purposes. U.S. Vice President JD Vance on Wednesday described the talks with Iran as "so far, so good" and said there was a deal to be made that would reintegrate Iran into the global economy while preventing it from getting a nuclear weapon. Saudi Arabia and the United States are set to discuss a number of blockbuster economic deals during Trump's visit next week, with the U.S. poised to offer Saudi Arabia an arms package worth well over $100 billion, sources have told Reuters. Trump has said Riyadh should "round up" a planned investment package in the U.S. to $1 trillion from an initial $600 billion. The trip is Trump's second visit abroad, after a short trip to Rome for the pope's funeral, since he returned to office in January. In his first term a lavish trip to Saudi Arabia marked his first overseas stop. Trump fostered close ties with Gulf states including Saudi Arabia during his first term. The country invested $2 billion in a firm formed by Jared Kushner, Trump's son-in-law and former aide, after Trump left office, and there are plans to build two Trump towers in Jeddah and Riyadh.
Yahoo
08-05-2025
- Business
- Yahoo
Saudi Arabia sits on fence over BRICS with eye on vital ties with US
By Pesha Magid, Maha El Dahan and Manya Saini RIYADH/DUBAI (Reuters) - Saudi Arabia has held off formally joining the BRICS bloc of nations despite attending a meeting in Brazil last week, two sources said, finessing an issue that could upset Washington as Riyadh seeks to seal deals with its U.S. ally. The issue of BRICS membership has been diplomatically sensitive for Saudi Arabia since it was first invited to join in 2023, and remains so with President Donald Trump due to visit next week and Riyadh negotiating nuclear and technology deals. BRICS, founded as a grouping of Brazil, Russia, India, China and South Africa to counter Western dominance of the world order, has grown in recent years to include emerging economies such as the United Arab Emirates, Egypt and Indonesia. But while the BRICS website shows Saudi Arabia - the world's largest oil exporter - as a member, it has yet to join, according to the two sources, both with direct knowledge of Saudi policy. Saudi Arabia's government communications office did not immediately respond to a request for comment. Brazil's foreign ministry referred Reuters to the Saudi government when asked about the kingdom's listed status as a member on the website. Brazil is currently presiding over BRICS. Riyadh does not want to risk U.S. anger as negotiations are underway with Washington, one of the sources and a diplomat said. Saudi Arabia sent its deputy foreign minister to the April 29 meeting in Rio de Janeiro, where ministers from the fast-expanding bloc failed to agree a joint communique. The kingdom's ambivalence about BRICS membership lays bare its high-stakes balancing act between China, its biggest oil export customer, and Washington, its indispensable security and technology partner - a tightrope walk made ever more precarious by the deepening U.S.-Chinese divide. "The Saudis still see tons of value in engaging with BRICS and its member states. They will keep double-dipping – or multi-dipping – with global partnerships as long as they can," said Robert Mogielnicki, senior resident scholar at the Arab Gulf States Institute in Washington. "I think the Saudi calculation is that what they may be able to get out of the U.S. outweighs what they could get from BRICS membership, at least over the short term.' In January, Trump demanded that BRICS commit to not creating a new currency or supporting another currency that would replace the U.S. dollar, or face 100% tariffs against BRICS nations. SEEKING ALLIES While the kingdom still favors its historic ally the United States, it is also seeking to nurture trade ties with China, the largest importer of Saudi crude. In February, Saudi Arabia exported goods worth 15.2 billion riyals ($4.05 billion) to China, marking a 20.6% increase from a year earlier, when trade amounted to 12.6 billion riyals, data from the Observatory of Economic Complexity show. Over the past five years, trade has grown at an annualised rate of 50.3%. Total Chinese investment and construction contracts in Saudi Arabia between 2005 and mid-2024 reached nearly $71 billion, according to the China Global Investment Tracker, reflecting Beijing's growing role in the kingdom's economic transformation. The Saudi partnership with the United States remains central to its security, investment and technology ambitions, even as it expands relations with rival powers like China and Russia. The U.S. is poised to offer Saudi Arabia an arms package worth well over $100 billion, sources told Reuters last month, saying the proposal was being lined up for announcement during Trump's visit. BRICS has sought to shift away from the dollar into other currencies. But a study by the Atlantic Council's GeoEconomics Center last year showed the greenback remains the world's primary reserve currency, and neither the euro nor the BRICS countries have managed to reduce global reliance on the dollar. "While BRICS is a useful forum for airing grievances over American behaviour, it is not yet a body coherent enough to provide public goods on key issues like currency cooperation, security, or economic integration," said Steffen Hertog, associate professor in comparative politics at the London School of Economics. "Saudi feels like they have the leverage and they are enjoying the position," said Saudi analyst Aziz Alghashian. "They see it that the United States is still the main actor, but there are others that could also provide utility," he added. ($1 = 3.7509 riyals)
Yahoo
13-04-2025
- Business
- Yahoo
Saudi Arabia, US on 'pathway' to civil nuclear agreement, US Energy Secretary says
By Pesha Magid RIYADH (Reuters) - The United States and Saudi Arabia will sign a preliminary agreement to cooperate over the kingdom's ambitions to develop a civil nuclear industry, U.S. Energy Secretary Chris Wright told reporters in the Saudi capital Riyadh on Sunday. Wright, who had met with Saudi Energy Minister Prince Abdulaziz bin Salman earlier on Sunday, said Riyadh and Washington were on a "a pathway" to reaching an agreement to work together to develop a Saudi civil nuclear programme. Wright, on his first visit to the kingdom as secretary as part of tour of energy-producing Gulf states, said further details over a memorandum detailing the energy cooperation between Riyadh and Washington would come later this year. "For a U.S. partnership and involvement in nuclear here, there will definitely be a 123 agreement ... there's lots of ways to structure a deal that will accomplish both the Saudi objectives and the American objectives," he said. A so-called 123 agreement with Riyadh refers to Section 123 of the U.S. Atomic Energy Act of 1954 and is required to permit the U.S. government and American companies to work with entities in the kingdom to develop a civil nuclear industry. Saudi authorities have not agreed to the requirements under the act, Wright said. It specifies nine non-proliferation criteria a state must meet to keep it from using the technology to develop nuclear arms or transfer sensitive materials to others. Progress on the discussions had previously been difficult because Saudi Arabia did not want to sign a deal that would rule out the possibility of enriching uranium or reprocessing spent fuel - both potential paths to a bomb. Saudi Crown Prince Mohammed bin Salman has long said that if Iran developed a nuclear weapon, Saudi Arabia would follow suit, a stance that has fuelled deep concern among arms control advocates and some U.S. lawmakers over a possible U.S.-Saudi civil nuclear deal. Wright did not mention a wider arrangement with the kingdom, which the previous administration of U.S. president Joe Biden had been seeking and included a civil nuclear agreement and security guarantees in the hopes it would lead to normalisation of relations between Saudi Arabia and Israel. Saudi Arabia, the world's largest oil exporter, is seeking to generate substantial renewable energy and reduce emissions, under the crown prince's Vision 2030 reform plan. At least some of this is expected to come from nuclear energy.
