Saudi Arabia’s signing of a strategic economic partnership with the United States marks a major shift in the Kingdom’s economic trajectory and reinforces its ambitions to become a top-12 global economy with a GDP target of $2.6 trillion, economic experts said.
The agreement was signed on Tuesday at the Al-Yamamah Royal Palace in Riyadh in the presence of Crown Prince and Prime Minister Mohammed bin Salman and US President Donald Trump. A series of deals and memoranda of understanding were also inked during the ceremony.
Mohammed Duliem AlQahtany, an economics professor at King Faisal University, told Asharq Al-Awsat the agreement represents a long-term strategic move that will reshape bilateral ties. “This partnership ushers in a new phase of comprehensive cooperation,” he said, citing its focus on security, energy, space, environment, health, and scientific research. “It’s a multi-dimensional framework that positions Saudi Arabia as a credible and capable global partner for the United States.”
AlQahtany added that the agreements support the Kingdom’s drive to diversify its economy away from oil and toward innovation and technology. The move is central to Riyadh’s plans to localize key industries, boost non-oil exports, reduce imports, and strengthen the trade balance.
He said the initiatives are also aligned with Saudi Arabia’s vision of becoming a major logistics hub connecting key global economies and continents.
Newly signed Saudi-US agreements in energy, defense, and mining are expected to accelerate the Kingdom’s transformation into a global industrial and technological power while bolstering environmental protection and national security, the Saudi economist said.
AlQahtany also said the energy sector deals will enhance efficiency and environmental sustainability by deploying advanced technologies for carbon capture and emissions reduction, a major challenge in the global energy transition.
He added that agreements in the mining sector could position Saudi Arabia as a key global player in an industry he described as “the future of industrial development.” The deals aim to localize supply chains, foster innovation, and help Saudi mining companies scale up to compete internationally in the coming years.
On the defense front, Al-Qahtani said the agreements would modernize the Kingdom’s defense systems through advanced US technologies, strengthening regional deterrence and deepening the Saudi-American alliance.
Additional agreements focus on emerging technologies such as artificial intelligence, space exploration, and advanced scientific research, he noted. They also aim to build human capital, improve customs data exchange, and promote collaborative medical research.
AlQahtany said the broader partnership also seeks to showcase Saudi Arabia’s cultural heritage, particularly the historical treasures of AlUla, on the global stage, while promoting biodiversity and environmental protection across the Kingdom.
The recently signed Saudi-US agreements represent a comprehensive model of strategic partnership that spans security, economy, technology, and culture, reflecting a shared vision to deepen cooperation in areas central to Saudi Arabia’s Vision 2030, a senior executive said.
Mohamed Omar, CEO of G.WORLD, told Asharq Al-Awsat that the Trump administration is actively forging new alliances in the region to advance its strategic goals, with Saudi Arabia playing a pivotal role due to its economic strength and growing regional and global influence.
“These agreements go far beyond traditional security and energy ties,” Omar said. “They encompass diverse sectors including conventional and renewable energy, defense, space, health, culture, mining, industry, trade, and transport, forming the foundation of a knowledge-based, diversified economy.”
He noted that the energy deals will enhance sectoral security and support the green transition, while cooperation with NASA and American research institutions will facilitate technology transfer and innovation, boosting local capabilities.
Omar said the defense agreements aim to modernize Saudi Arabia’s military systems and expand domestic manufacturing, reinforcing the Kingdom’s local defense industry.
He also highlighted efforts to develop the tourism and heritage sectors, particularly through AlUla projects, as part of a broader push to establish Saudi Arabia as a global cultural destination.
“These agreements will attract foreign investment in critical sectors such as mining, space, and clean energy, all of which are vital for income diversification,” he said. “They will also create job opportunities in high-tech, military, and research fields, while helping to develop national talent.”
Omar described the partnership as a “transformational leap” in Saudi-US relations - one that moves beyond traditional models to embrace a forward-looking, innovation-driven alliance that strengthens Saudi Arabia’s status as a regional economic and scientific powerhouse.
