The US State Department has given initial approval to the sale of $3.5 billion worth of missile to Saudi Arabia. The sale primarily comprises AIM-120C-8 Advanced Medium Range Air-to-Air Missiles (AMRAAM). This is the latest proposed arms deal ahead of the first official visit of US President Donald Trump’s second administration.

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The proposed deal was announced by the Pentagon’s Defence Security Cooperation Agency in a statement released on Friday (May 2). As part of the deal, Saudi Arabia had requested 1000 AMRAAMs, 50 AMRAAM guidance sections, missile containers, spares, and a range of logistic and support services.

The deal has been formally notified to Congress; however, the statement also specified that there was no indication of signing a contract. Upon the congressional approval, RTX Corp will be the main contractor responsible for the missile-related support.

Military partnership between the US and Saudi Arabia

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This is the latest in the series of military deals signed between the two nations. According to the US military sales figures between 2022 and 2025, these two nations have signed deals worth approximately  $16.4-$20.4 billion. This includes, 

  • $1.05 billion worth of combined sales of AGM-114R3 Hellfire II missiles and AIM-9X Block II Sidewinder missiles in October 2024

  • $2.8 billion worth of system logistics and sustainment support for various aircraft in July 2024

  • $1 billion worth of a comprehensive military training programme in December 2023

  • $500 million worth of Cooperative and Logistics Supply Support Arrangement Programme in September 2023.

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Strategic and economic significance

With the ongoing tariff war, sectors like automotive and electronics have experienced a decline. The Institute for Supply Management (ISM) reported a Manufacturing PMI of 48.7 for April 2025, down from 49.0 in March 2025. This is the second consecutive month that the PMI has fallen below the neutral threshold. However, companies like RTX Corporation, Lockheed Martin and Boeing have reported 6-10% Y-o-Y revenue growth partly due to foreign sales in 2023-24.

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US defence exports act as a buffer against the backdrop of a broader industrial decline. Between 2022 and 2024, it accounted for $205 billion in sales globally. Among which Saudi Arabia accounts for over 8 per cent of the US foreign military sales.

Saudi Arabia plans to invest $600 billion in the US in the next four years. This is likely to reduce the trade deficit and maintain a trade surplus in Saudi Arabia.

Saudi Arabia already boasts the largest fleet of F-15 fighter jets after the US.

With the ongoing sporadic drone strikes of Yemen-based Houthi rebels and continued expansions of Iran’s missile arsenal, the US feels the need to utilise its defence sales to support the foreign policy goals in the region. It plans to strengthen its allies and contribute to the political stability of the region.

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