US President formally designared Saudi Arabia as a Major non-Nato Ally (MNNA) after the Saudi prince committed to a nearly $ 1 trillion investment in America.
Although 20 countries – including Pakistan, Kenya, Tunisia, and Brazil – have the MNNA status, Saudi Arabia’s designation marks a transformational US reset in the region, bringing Riyadh on par with Israel in terms of unlocking a suite of military and economic privileges.
Speaking at a black-tie dinner honoring the Crown Prince, Trump described the move as a leap forward in military cooperation, facilitating the sale of cutting edge US arms like the F-35, and collaboration in areas ranging from civil nuclear technology to critical minerals to artificial intelligence.
Nvidia CEO Jensen Huang and Open AI President Greg Brockman were among those who attended the East Room dinner. The 140-people invitee included Apple CEO Tim Cook, IBM CEO Arvind Krishna, Coinbase CEO Brian Armstrong, Dell CEO Michael Dell, Citigroup CEO Jane Fraser, Pershing Square Capital Management’s Bill Ackman, and Blackstone CEO Stephen Schwarzman.
Although a White House fact sheet cast the MNNA designation and the agreements that accompanied it as an “America First” strategy that would offer U.S coffers and galvanize the economy.
It included a sweeping Strategic Defense Agreement, also rehabilitating a country long viewed with suspicion in Washington for the role of its nationals in the 9/11 attack on the U.S and its medieval outlook, both of which its crown prince has sought to overcome.
The fact sheet also noted that the defense agreement secures new burden-sharing funds from Saudi Arabia to offset America’s costs, while making it easier for US defense firms to operate inside the kingdom.
Saudi Arabia’s GDP itself is just $ 1.1 trillion, MAGA partisans pointed to the riches of the Saudi’s Public Investment Fund (PIF), one of the largest Sovereign Wealth Funds in the world with more than $ 1 trillion in assets under management.
Still the $ 1 trillion commitment, up from $ 600 billion announced a few months ago, is expected to crimp other Saudi pledges across the world, including in India, where the Saudi PIF recently bumped up its commitment from $ 10 billion to $100 billion.