Trump Announces Syria Sanctions Lift and $600 Billion Saudi Investment Deal

Wednesday 14 May 2025 - 07:30

By: Zahouani Ilham

Trump Announces Syria Sanctions Lift and $600 Billion Saudi Investment Deal

U.S. President Donald Trump began his visit to the Gulf region with a major announcement: the United States will lift long-standing sanctions on Syria. He also secured a record-breaking $600 billion investment pledge from Saudi Arabia for American ventures.

The White House revealed that part of the agreement includes a $142 billion arms package, described as the largest defense cooperation deal in U.S. history. This comes months after Syrian rebels, led by the current President Ahmed al-Sharaa, overthrew Bashar al-Assad in a civil war that lasted more than a decade.

During an investment summit in Riyadh, Trump stated that the decision to remove sanctions was influenced by a request from Saudi Crown Prince Mohammed bin Salman. Trump, making light of the moment, said, "Oh what I do for the crown prince," drawing laughter from attendees. He acknowledged the past value of the sanctions but insisted it was time for Syria to move forward.

The U.S. had labeled Syria a sponsor of terrorism since 1979 and imposed multiple sanctions, especially after civil conflict erupted in 2011. Now, Syrian Foreign Minister Asaad al-Shibani has welcomed the move, calling it a "new start" for the country’s reconstruction. A White House official confirmed Trump will briefly meet Syrian President Sharaa in Riyadh.

Trump and Prince Mohammed signed multiple agreements covering sectors such as energy, defense, mining, and technology. Trump hopes that closer ties with Saudi Arabia will boost regional stability, strengthen ties with Israel, and counter Iran’s influence.

According to the White House, over a dozen U.S. defense firms are involved in the deals, covering areas like air and missile defense, naval security, communications, and aerospace. While it’s unclear if the agreement includes F-35 fighter jets from Lockheed Martin, Saudi officials indicated the total value of the cooperation could rise to $1 trillion as further deals are negotiated.

The U.S.-Saudi relationship, based on oil-for-security principles, has remained strong for decades. However, tensions flared in 2018 following the murder of journalist Jamal Khashoggi, which U.S. intelligence attributed to Crown Prince Mohammed—an accusation the Saudi government denies.

Trump’s Gulf tour includes stops in Qatar and the UAE, with a focus on economic cooperation rather than military strategy. Business leaders such as Elon Musk, OpenAI’s Sam Altman, BlackRock’s Larry Fink, and Blackstone’s Stephen Schwarzman attended the Riyadh summit.

Trump also met with top Saudi economic figures, including Aramco CEO Amin Nasser and Investment Minister Khalid al-Falih, while touring models of major Saudi development projects. These include Vision 2030 and mega-initiatives like NEOM, a futuristic city aiming to reduce reliance on oil, which currently accounts for 62% of Saudi revenue.

Despite this ambitious vision, rising costs and volatile oil prices have forced Saudi Arabia to temper some of its goals.

Notably, Trump has not scheduled a visit to Israel, raising questions about U.S. priorities in the region. Still, he urged the Saudis to eventually normalize ties with Israel, as other Arab nations did during his first term, while recognizing that such a decision must come at their own pace.

Sources suggest that Israeli Prime Minister Benjamin Netanyahu’s resistance to a Palestinian state continues to complicate Saudi-Israeli normalization efforts.

On regional security, Trump reiterated strong opposition to Iran, calling it the most destructive force in the Middle East.