• Monday, May 27, 2019

The $400 billion deal between KSA and the US: An expert's clarification

Discussion in 'Arab Defence Forum' started by The SC, Dec 21, 2018.

  1. The SC

    The SC ELITE MEMBER

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    March 2018

    From the economic expert Edward Burton, president of the Saudi-American Economic Council:

    - The commercial and economic strategic relationship between the Kingdom and the United States is distinguished worldwide, as it dates back to the years of discovery of the Kingdom's oil in the 1930s.

    - Saudi Arabia has entered the American business community and has become an important partner in major investment companies in the sectors of engineering, construction, health, health insurance, consumables, services, transportation and other important sectors.

    - The trade exchange between the two countries for the year 2016 reached 34.89 billion dollars, one of the largest trade exchanges in the world.

    - The visit of the Crown Prince, Prince Mohammed Bin Salman, will focus economically on benefiting from the US expertise to localize the Saudi industries, especially the technological sector, and to encourage small Saudi initiatives in the scientific fields to compete globally. The issue of settling the military industries and the health sector is an important part of the agenda. Crown Prince, as well as new sectors such as leisure that attract the most ambitious American companies to win an investment opportunity in Saudi Arabia determined to take advantage of all its potential.

    - The $ 400 billion Saudi-US deal was not easily reached and there are many countries that aim for a similar deal to benefit from the world's most industrialized country, but economic sanctions and related controls prevent it from happening.

    - It is stupid to say about the huge deal money that will change the shape of the Arab region and the world as gifts or gifts that go to Trump or the United States because every dollar of these investments will go to sectors within the Kingdom from infrastructure to the most complex military industries to be manufactured by Saudi hands and in the Kingdom.

    - To date, $ 45 billion of the deal has been spent on the technology and information sector in the Kingdom, $ 2.4 billion for the development of consumer industries, $ 4.2 billion for real estate and construction, and a specific budget for the development of infrastructure, roads and bridges in the kingdom.

    - The figures speak of the Kingdom's gains from these deals, which achieved a significant jump in record time with the increase in the proportion of non-oil exports in one year after the launch of the vision of Prince Mohammed bin Salman by 18%, including exports of metal and plastic as well as paper and food industries and others.

    - We will continue to see an upward movement in Saudi export and industry figures. I recommend focusing attention on the technology sector in the Kingdom to which the Crown Prince pays special attention that will surprise the Saudis and the world with its achievements.
    It is where the largest budgets were allocated. Soon we will see the Kingdom as an important global center of technology.

    http://www.alriyadh.com/1666376

    * Note that the deal is over 10 years and comprises the $110 billion arms deal..


    Other details of the deal:

    - The signing of an agreement with Lockheed Martin to support the assembly of 150 Black Hawk S-70 helicopters in Saudi Arabia, a deal worth $ 6 billion.

    - The signing of an agreement with Raytheon to establish a branch in Saudi Arabia that will focus on implementing programs to create local capabilities in defense, aviation industry and security in the Kingdom.

    - The signing of an agreement with defense contractor General Dynamics to "design, engineer, manufacture and support armored combat vehicles" for current and future programs in the Kingdom, supporting the goal of localising 50 per cent of Saudi military spending in accordance with Vision 2030.

    - The signing of a Memorandum of Understanding (MOU) and major projects with GE with a total value of $ 15 billion in the energy, healthcare, oil and gas, and mining sectors.

    - An agreement with Dow Chemical to invest $ 100 million in the construction of a manufacturing plant for the production of polymers for coating and water treatment and the signing of a memorandum of understanding to study the feasibility of the proposed investments in the concessions owned by the company in the high-performance silicon sector.

    - 16 agreements signed by Aramco with US companies worth 50 billion dollars.

    - A Memorandum of Understanding (MOU) between Blackstone Direct Investment and the Public Investment Fund of Saudi Arabia to launch a $ 40 billion infrastructure investment facility with an initial contribution of $ 20 billion by the Saudi Investment Fund, with the remaining funds being raised from other investors.

    - A memorandum of understanding between ExxonMobil and Saudi Basic Industries Corporation (SABIC) to conduct a detailed study of a potential petrochemical project in Texas and start engineering work and design. The project ensures the establishment of an ethylene production unit with an expected annual production of approximately 1.8 million tons.


    The military side, which amounts to 110 billion dollars:

    https://www.defensenews.com/breakin...mp-s-110-billion-weapons-list-for-the-saudis
     
    Last edited: Dec 21, 2018
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  2. AZADPAKISTAN2009

    AZADPAKISTAN2009 ELITE MEMBER

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    Money grab
     
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  3. Indus Pakistan

    Indus Pakistan BANNED

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    Wow, this amounts to $11 billion per year, every year for ten years amounting to $110 billion. This figure is double the much touted CPEC.


    This is what you call friendship.


    upload_2018-12-20_21-52-25.jpeg
     
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  4. war&peace

    war&peace ELITE MEMBER

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    "KSA cannot exist more than two weeks without our support" Donald Trump PotUS
     
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  5. The SC

    The SC ELITE MEMBER

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    Yes it is true, and the deal is made as to at least halve it by 2030..
     
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  6. Persian Gulf 1906

    Persian Gulf 1906 BANNED

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    Trump's camel producing a lot of milk for their White masters
     
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  7. The SC

    The SC ELITE MEMBER

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    You mean "without" US support?
    That was thwarted by MBS in his interview with Bloomberg..Why do you think all this fuss from congress about MBS, It is because he stood to the US false allegations, then they came with the Kashoggi case.. no one stands to the US big mouth and mischiefs, only KSA can do it (since it is deeply rooted in the US economy and for a long time..)..as with the Chinese DF missiles where it sent the US ambassador home for too much curiosity, and making Obama look like a piece of crap and treating him as such over his policy on the middle east, getting the F-15s and Awacs despite Usrael vehement opposition..and much more.. suffice to know that KSA is behind the US dollar (Petro-dollar) being the reserve currency of the world to understand reality..Still the US-KSA relationship is based on a win/win strategy..
     
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  8. Indus Pakistan

    Indus Pakistan BANNED

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    The fact is non of this $110 billion of defence purchases are needed. If Iran is considered a threat and that threat became reality there is no way KSA would be able to defeat Iran with or without these purchases. Washington would step in and US Army would race to defend KSA. We saw something of this when Saddam threatened and US came running - paid of course handsomely with cash payments.

    Then there is Yemen etc. In those situations there is no need for hi-tec but just infantry ready to take losses. So that begs the question what is the point of these defence purchases from USA. THe answer is simple. It's baksheesh. To keep America happy and pro KSA by buying American friendship.
     
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  9. Philip the Arab

    Philip the Arab FULL MEMBER

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    No land war would happen so your situation is useless, Iran and Saudi Arabia in no way have the ability to to amphibious landings on each others shores. The only thing I see likely is an air war in which the combined air forces of the GCC would be more than enough to handle the aging Iranian air force. Iran doesn't have enough Silos or TELS to launch an all out ballistic missile attack on Iran and even so the attack shall be met with ballistic missiles attacks against Tehran and strategic Iranian bases because the Chinese missiles do have a better CEP than most Iranian missiles and in the future the Grom-2 will have a very excellent CEP. So to correct you, the U.S. wouldn't race to help Saudi Arabia because Saudi Arabia asks but because they already have an AC over there. https://en.wikipedia.org/wiki/Royal_Saudi_Strategic_Missile_Force
     
  10. Indus Pakistan

    Indus Pakistan BANNED

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    Abadan > Basra > Kuwait > KSA. Just over 100 miles. Southern Iraq is mostly Shia.
     
  11. Philip the Arab

    Philip the Arab FULL MEMBER

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    Southern Iraqis are garbage and just in general Iraqis are trash soldiers. You know how big the Saudi Desert is? Complete openness for airstrikes, I told you it wont happen ever.
     
  12. The SC

    The SC ELITE MEMBER

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    The friendship is old and solid.. the difference this time in weapons' procurements is the transfer of technology as an obligation for any arms deal in order to take place.. and it works well as you can see in the article above..because these worldwide corporations know that they will at least secure 40-50% of their revenues from Saudi Arabia in the future.. instead of seeing it all go to Russia and China.. no one refuses a $5-6 billion a year.. while through all of it, KSA gets the most sophisticated weapons in the world and localise their technologies to defend itself now and in the future..
    - I do not see any open conflict with Iran in the near future..
    - These weapon systems are meant only to defend oneself and respond to current and possible future threats.. (BTW, Iran has a substantial amount of Ballistic Missiles!)
    - KSA has very valuable assets as you know, and they need to be protected and defended by all means.. and no one can defend you better than yourself..

    As for the US rushing to help KSA in case of prominent treats, well that is a valid point, since you should understand that the US rushed to help Kuwait against Saddam's Iraq to defend its own interests in the region..But the Kingdom wants to be as independent as possible and it is working on it..I do not know if you knew that Saudi Arabia had opposed the US invasion of Iraq!?
     
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  13. Sineva

    Sineva FULL MEMBER

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    No my friend that is what you call a :usflag:PROTECTION RACKET:usflag:
    [​IMG]
    [​IMG]
     
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  14. The SC

    The SC ELITE MEMBER

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    A protection racket with the best US weapons and ToT going to Saudi Arabia!?
    Your comment does not make sense..
     
  15. Sineva

    Sineva FULL MEMBER

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    You pay them hundreds of billions of dollars and in return you get:Weapons you do not need and can barely use,weapons that depend upon the west for their logistics and maintenance support,and without which they are virtually useless.As for the best...well,last time I looked the israelis still got better gear than the arabs,indeed that seemed to be a part of us regional foreign policy,oh and the israelis got it all for free of course......unlike the arabs.
    As for tot,these days thats sort of become a popular "buzzword",but I`ve noticed that even when it has been supplied its usually been with caveats ie only some of the technology has been supplied leaving important gaps that have to be filled the old fashioned way.
    Ultimately what the saudis/gulfies are really spending their money on is political support,and of course of even more vital importance the expectation of us/western military support ie desert storm......if it should ever be needed,that is.