Trump's Saudi Arms Deal – A Historical Boost for U.S. Industry

President Trump’s commitment to support Saudi Arabia through arms sales is not only an investment in U.S.-Saudi relations but also in the American defense industrial base. Providing Foreign Military Sales (FMS) to the Kingdom sustains manufacturing jobs in America and promotes American defense technology abroad. This will strengthen the industrial base at home, foster closer relations between Washington and Riyadh, and protect U.S. commercial and security interests in the region.

The biggest winners in the deal are U.S. defense manufacturing companies. These firms include Lockheed Martin, Boeing, Raytheon, General Dynamics, BAE Systems, and Northrop Grumman. The sale is not only an investment in their domestic production facilities but also a promotion of the advanced technology that American companies have to offer. The FMS will create and sustain jobs all over the U.S.

Sikorsky

As part of the arms deal, Lockheed Martin will build around 150 S-70 Black Hawk utility helicopters. The program will create 450 jobs each in both countries. Over the next 30 years, the deal is estimated to produce another 18,000 jobs in the U.S. to support the maintenance and modernization of these platforms. Most of these jobs will be based at the Sikorsky plant in Connecticut.

Saudi Arabia will buy 48 Chinook helicopter packages, as well as P-8 maritime patrol and reconnaissance aircraft, and 16 wide-body planes from Boeing. The Chinook helicopter project alone will sustain around 6,000 jobs in Ridley Park, Pennsylvania in addition to the labor needed to build engines at Honeywell Aerospace’s plant in Phoenix, Arizona.

A U.S. Army M-1 Abrams tank from 3rd Battalion, 69th Armored Regiment, scans a water reservoir for possible weapons caches during Operation Fawat Al Asad, on Nov. 17, 2007, near Lake Thar Thar, Iraq. 

U.S. Marine Corps photo by Cpl. James F. Cline III

The deal also approves the sale of 153 M1A1/A2 Abrams tanks and 20 Heavy Equipment Recovery Combat Utility Lift Evacuation Systems (HERCULES) produced by General Dynamics Land Systems and BAE Systems respectively. This will go a long way towards sustaining jobs at the Lima Army Tank Plant, the only tank production facility in the U.S. 

Trump’s deal is a promotion of the first-class defense technology offered exclusively by American companies. The FMS lays the groundwork for stronger relations between U.S. defense manufacturing companies and Saudi Arabia. For example, the agreement includes a joint venture deal between Boeing, Alsalam Aerospace Industries, and Saudia Aerospace Engineering Industries. The venture will be focused on building both military and commercial helicopters and will be based in Riyadh and Jeddah.

Adding to its presence in 19 countries around the world, Raytheon announced the creation of a new business unit in Saudi Arabia. Based in Riyadh, Raytheon Arabia will be fully owned by the parent company and focus on providing defense, aerospace, and security solutions to Saudi Arabia. Launching this new wing will also create jobs in both the U.S. and the Kingdom. Establishing relationships with and offices in Saudi Arabia allows American defense manufacturing companies to extend the reach and the potential of their operations to new clientele and different security needs.

The FMS is an indicator of warming relations between Washington and Riyadh. Tensions rose between the Kingdom and the Obama administration, leaving the relationship in a rocky place.  Previous administrations from both parties recognized the importance of Saudi Arabia as a regional and global partner. This priority has been recognized and acted upon by Trump since the beginning of his presidency. For example, the president’s visit to the Kingdom was the first foreign trip of his administration. The visit acted as a launching ground for the FMS, and other policies built upon shared security and economic interests.

Assisting Saudi Arabia to secure and modernize its forces goes a long way towards protecting U.S. regional interests. Saudi Arabia is one of the only partners the U.S. has in the region capable of combating Iran’s reach. Aiding Saudi Arabia makes it more capable of preventing the Islamic Republic from becoming the dominant player in Southwest Asia. Saudi Arabia is also well equipped and placed to support the U.S. as it pursues an end to conflicts in Syria, Iraq, and Yemen.

Trump’s budding relationship with Saudi Arabia protects jobs in the U.S. and promotes American companies and technology abroad. Promoting American technology increases demand for these products. Higher demand for first-class systems only produced by American defense companies sustains the manufacturing workforce in the U.S, where most production is based. Giving American companies the chance to build their clientele offers them the opportunity to develop new solutions to different types of security problems. A strong, already trained and equipped workforce will be needed to design and build new systems. The Trump arms package with Saudi Arabia is not only an investment in a long-standing partnership but also in American manufacturing and the U.S. defense industry. 

Rathna K. Muralidharan is a program director at the Lexington Institute focusing on global security and regional politics. You can follow her at @RathnaKM and the Lexington Institute @LextNextDC.