Boeing and Saudi Arabia Sign New Deals

The sale is expected to include Boeing 777 and or 787 aircraft, Reuters reported, citing a person familiar with the matter.

"We are especially proud of how our broad portfolio of advanced global security products and technologies will enhance national security in Saudi Arabia, strengthen the cause of peace in the region, and provide the foundation for job creation and economic prosperity in the USA and in the Kingdom".

Also included in the agreements is a defense cooperation agreement meant to create "tens of thousands of new jobs in the US defense industry".

Lockheed Martin garnered a substantial portion of the massive deal. The center is a joint venture with Alsalam Aerospace Industries, Saudi Aerospace Engineering Industries and Boeing.

Raytheon and the state-owned Saudi Arabia Military Industries Company have signed a memorandum of understanding to collaborate on defense projects and technology development efforts.

Lockheed Martin has secured a major contract with the Kingdom of Saudi Arabia.

The president began a two-day visit to Jerusalem on Monday after making a direct flight from Riyadh on what was believed to be the first open, direct flight to Israel from Saudi Arabia, The New York Times reported.

- Agreements to purchase Chinook helicopters and associated support services as well as guided weapon systems.

- A joint venture with the Kingdom to provide sustainment services for a wide range of military platforms.

One month after about 40 U.S. -Saudi Arabia arms deals - going back to 2009 - the iShares U.S. Aerospace & Defense ETF (NYSE Arca: ITA) was up 3.3 percent, on average, nearly double the return of the S&P 500 (^GSPC), according to data compiled by Kensho.

Lockheed Martin said in a statement that the deal "will directly contribute to [Saudi Arabia's] Vision 2030 by opening the door for thousands of highly skilled jobs in new economic sectors". We welcome the opportunity to continue that support.

  • Zachary Reyes