WASHINGTON, United States (US): Saudi Arabia’s Crown Prince Mohammed bin Salman and United States (US) President, Donald J. Trump, signed the Strategic Defence Agreement at the White House on Tuesday, Saudi Press Agency (SPA) reported.
The agreement comes within the framework of the long-standing strategic partnership and the deep-rooted historical ties that have united the two countries for more than ninety years.
It also represents a pivotal step that strengthens long-term defence cooperation and reflects the shared commitment of both sides to supporting peace, security, and prosperity in the region.
The defence agreement affirms that Saudi Arabia and the United States (US) are capable security partners able to work together to confront regional and international challenges and threats.
The agreement deepens long-term defence coordination, enhances deterrence capabilities and readiness, and supports the development and integration of defence capacities between the two countries.
It also establishes a solid framework for a sustained and continued defence partnership, contributing to the security and stability of both nations.
Meanwhile, the volume of trade exchange between Saudi Arabia and the US has surpassed USD500 billion (RM2.07 trillion) over the past decade, making the US the Kingdom’s second-largest import partner.
Since 2020, the trade volume has grown by more than 50 per cent, demonstrating the depth and strength of the economic relationship between the two countries.
This strategic partnership enhances the competitiveness of vital sectors, attracts quality investments, and expands trade cooperation, ultimately supporting the economic prosperity of both nations.
In 2024, the trade volume reached approximately USD33 billion (RM136.29 billion).
The most significant Saudi exports were fertilisers and organic chemical products, while the primary US imports included machinery, equipment, mechanical tools, and automobiles, totalling USD9 billion (RM37.17 billion).
Preliminary data indicate that trade between the two countries reached around USD16 billion (RM66.08 billion) by the first half of 2025.
Furthermore, the Saudi-US Trade and Investment Framework Agreement (TIFA) Council, chaired by the General Authority of Foreign Trade (GAFT), plays a crucial role in strengthening trade relations.
Its objectives are to monitor trade and investment ties, identify expansion opportunities, remove obstacles hindering trade and investment flows, enhance the business and investment environment, and facilitate communication among various sectors in both countries.
The council has facilitated the agreement on 27 initiatives across multiple fields, including standards and metrology, food and pharmaceuticals, artificial intelligence, and intellectual property.
Its membership includes 11 Saudi government entities that address trade and investment issues within a defined framework.
The GAFT works to develop bilateral trade relations through coordination councils and joint governmental committees.
It aims to enable Saudi non-oil exports to access foreign markets and assist in overcoming the various challenges they face. – BERNAMA-SPA
