Donald Trump news: US government set to do $100 billion Saudi Arabia arms deal

The United States is poised to offer Saudi Arabia a multi-billion-dollar arms package, sources claim, with the proposal being lined up for announcement during President Donald Trump’s visit to the kingdom in May.

The package is worth well over $US100 billion ($A156 billion).

The offered package comes after the Administration of former President Joe Biden unsuccessfully tried to finalise a defence pact with Riyadh as part of a broad deal that envisioned Saudi Arabia normalising ties with Israel.

The Biden proposal offered access to more advanced US weaponry in return for halting Chinese arms purchases and restricting Beijing’s investment in the country. Reuters could not establish if the Trump Administration’s proposal includes similar requirements.

The White House, Pentagon and Saudi government communications office did not immediately respond to requests for comment. In his first term, Mr Trump celebrated weapons sales to Saudi Arabia as good for US jobs.

Lockheed Martin Corp could supply a range of advanced weapons systems, including C-130 transport aircraft, two of the sources said. One source said Lockheed would also supply missiles and radars.

RTX Corp, formerly known as Raytheon Technologies, is also expected to play a significant role in the package, which will include supplies from other major US defence contractors such as Boeing Co, Northrop Grumman Corp and General Atomics, said four of the sources.

All six sources declined to be named due to the sensitivity of the matter.

Lockheed Martin, RTX, Northrop and General Atomics declined to comment. Boeing did not immediately respond to a request for comment.

Reuters could not immediately establish how many of the deals on offer were new. Many have been in the works for some time, two of the sources said. For example, the kingdom first requested information about General Atomics’ drones in 2018, they said.

Over the past 12 months, a deal for $US20 billion ($A31 billion) of General Atomics’ MQ-9B SeaGuardian-style drones and other aircraft came into focus, according to one of the sources.

Several executives from defence companies are considering travelling to the region as a part of the delegation, three of the sources said.

The US has long supplied Saudi Arabia with weapons. In 2017, Mr Trump proposed approximately $US110 billion ($A172 billion) of sales to the kingdom.

As of 2018, only $US14.5 billion ($A22.7 billion) of sales had been initiated, and Congress began to question the deals in light of the murder of Saudi journalist Jamal Khashoggi.

In 2021, under Biden, Congress imposed a ban on sales of offensive weapons to Saudi Arabia over the Khashoggi killing and to pressure the kingdom to wind down its Yemen war, which had inflicted heavy civilian casualties.

Under US law, major international weapons deals must be reviewed by members of Congress before they are finalised.