Saudi Pledges KRW 1,400 Trillion Investment in U.S.…Trump: "Supply of Stealth Aircraft"

Expanded from US$600 billion support to US$1 trillion

Joining the U.S. to accelerate the shift away from an oil-dependent economy

Trump Approves Sale of F-35 Fighter Jets

Civil nuclear energy cooperation also strengthened

The United States has agreed to sell F-35 fighter jets to Saudi Arabia and to strengthen civilian cooperation in the nuclear energy sector. The U.S. envisions forging a strategic relationship with Saudi Arabia to bolster deterrence in the Middle East and to expand its domestic industrial base.

U.S. President Donald Trump on the 18th (local time) met with Saudi Crown Prince Mohammed bin Salman at the White House and concluded a U.S.-Saudi Strategic Defense Agreement (SDA). Crown Prince Mohammed bin Salman pledged to expand Saudi Arabia's previously promised investment in the U.S. from US$600 billion to US$1 trillion (about KRW 1,460 trillion).

On the day, President Trump approved large-scale arms sales including the F-35 fighter jet. This is the first time the U.S. will supply advanced stealth fighters to Saudi Arabia. Reuters described it as "a significant U.S. policy shift." The U.S. had originally been concerned about selling fighters to Saudi Arabia over the potential weakening of Israel's military edge in the Middle East and the transfer of defense technology to China.

The two countries also issued a "joint statement on the completion of negotiations on civil nuclear energy cooperation." This is seen as opening the door for U.S. companies to participate in the construction of Saudi reactors. Bloomberg explained, "If the agreement is finally concluded, it could give a boost to U.S. nuclear power companies such as Westinghouse that seek to build nuclear power plants in Saudi Arabia or sell technology to it."

Under its 'Vision 2030' plan to diversify an economy heavily dependent on oil, Saudi Arabia has been actively pursuing the construction of nuclear power plants. However, negotiations had not progressed because Saudi Arabia had rejected U.S. conditions banning uranium enrichment and reprocessing. The White House did not disclose whether the related provisions are included in this agreement. The U.S. Department of Energy said, "We will provide U.S. nuclear technology to Saudi Arabia while maintaining nonproliferation standards."

Reporter Han Myeong-hyeon wise@hankyung.com