President Donald Trump kicked off his Gulf trip on Tuesday with a surprise announcement that the United States would lift long-standing sanctions on Syria, and a $600 billion commitment from Saudi Arabia to invest in the United States.

The United States has agreed to sell Saudi Arabia a nearly $142 billion package of arms, the White House said, calling it Washington's largest ever "defense cooperation agreement."

The end of sanctions on Syria would be a major boost for a country devastated by more than a decade of civil war. Rebels led by current President Ahmed al-Sharaa toppled President Bashar al-Assad in December.

Speaking at an investment forum in Riyadh at the start of a trip focused on deals that has also included a flurry of diplomacy, Trump said he was acting on a request to lift sanctions by Saudi Arabia's de facto ruler, Prince Mohammed bin Salman.

"Oh, what I did for the crown prince," Trump said, drawing laughter from the audience. He said the sanctions have served an important purpose, but it is time for the country to move on.

The move represents a major shift in U.S. policy. The U.S. designated Syria a state sponsor of terrorism in 1979, added sanctions in 2004 and imposed further sanctions after the civil war erupted in 2011.

Syrian Foreign Minister Asaad al-Shibani told X that the planned move marks a "new beginning" on Syria's path to reconstruction. Trump has agreed to briefly greet Sharaa in Saudi Arabia on Wednesday, a White House official said.

Trump and the Saudi crown prince signed agreements covering energy, defense, mining and other areas. Trump has sought to strengthen ties with the Saudis to boost regional ties with Israel and act as a bulwark against Iran.

The deals include agreements with more than a dozen U.S. defense companies in areas including air and missile defense, air and space forces, maritime security and communications, according to a White House fact sheet.

It was unclear whether the deals included Lockheed F-35 jets, which sources said were discussed. The Saudi prince said the total package could reach $1 trillion if further deals are reached in the coming months.

Saudi Arabia is one of the biggest customers for U.S. arms, and the two countries have enjoyed a strong relationship for decades under a deal in which the kingdom supplies oil and the superpower provides security.

But ties have been strained by the killing of U.S.-based Saudi journalist Jamal Khashoggi by Saudi agents in Istanbul in 2018, causing a global uproar. U.S. intelligence has concluded that bin Salman approved the operation to capture or kill Khashoggi, a prominent critic, but the Saudi government has denied any involvement.

Trump did not mention the incident during his visit, calling bin Salman a "tremendous man." "I really think we like each other," Trump said.

Trump will depart Riyadh for Qatar on Wednesday and the United Arab Emirates on Thursday on a trip focused on investment rather than security issues in the Middle East.

Several U.S. business leaders are attending the event, including Elon Musk, the Tesla chief who has led Trump's government-downsizing efforts in Washington; OpenAI CEO Sam Altman; BlackRock CEO Larry Fink and Blackstone CEO Stephen Schwarzman.

Trump was seen talking with several Saudi officials, including sovereign wealth fund governor Yasir al-Rumayyan, Aramco CEO Amin Nasser and investment minister Khalid al-Falih as he viewed models for the kingdom's flashy, multibillion-dollar development projects.

Bin Salman has focused on diversifying the Saudi economy in a sweeping reform program dubbed Vision 2030 that includes "megaprojects" such as NEOM, a futuristic city the size of Belgium. Oil accounted for 62% of Saudi government revenues last year.

The kingdom has scaled back some of its ambitions due to rising costs and falling oil prices. (Newsmaker23)

Source: Reuters