Agreements worth $450 billion (Dh1.65 trillion) was signed by Saudi Arabia and the US during President Donald Trump’s visit to the Kingdom.
These are seen as the largest-ever deals in the history of both countries, which date back to more than 80 years.
They, nevertheless, have pleased some and upset others, who have tried to distort facts claiming that these serve Washington’s interests only.
Some have tried to abuse the agreements saying they are just a bribe for the sake of getting protection.
However, the truth is completely the other way round and unlike what has been circulated by anti-GCC media — including those in Iran and local right wing, radical, Islamic and leftist oppositions.
The Saudi-US military agreements express both sides’ interests and will reflect positively on their economies.
But how?
Two decades ago, the GCC states had taken a strategic decision that arms procurement transactions from developed countries should involve investments in local development projects — and this is what happened in the UAE, Saudi Arabia and Kuwait, where many advanced projects were implemented, increasing local production and boosting some industries.
For example, when boarding Boeing or Airbus aircraft, it should be remembered — especially by those who took part in vicious campaign — that some parts are manufactured in Abu Dhabi by Emirati hands.
Similarly, promoters of the misleading campaign against the Saudi Arabia and US agreement should remember when enjoying their air-conditioned surroundings in future that the turbines are manufactured in Saudi Arabia by Saudi workers and this would be the result of an agreement between General Motors and Saudi Arabia during Trump’s visit.
US investment in Saudi economy
In addition, the US is expected to invest $45 billion in the Saudi economy, which would provide tens of thousands of jobs and cement development progress as part of the 2030 vision, meaning that such investments will benefit the interests of both countries.
Aramco has alone signed 16 contracts worth $50 billion with 11 US companies to carry out joint ventures in Saudi Arabia as part of Ajyyal programme.
Moreover, the $110.35 billion military contracts signed between both sides and to be implemented over the course of 10 years will contribute to localising military requirements, transforming Saudi Arabia into an arms exporter and hiring thousands of Saudi manpower.
It will help boost gross domestic production, develop defensive capabilities and provide protection for the region against the non-stop Iranian threats.
In return, let us see what Iran and its followers — who claim to be developed while allying with the dictator and regressive regime of Wilayat Al Faqih, (the Guardianship of the Islamic Jurist) — are doing.
Iran is scattering its people’s wealth in senseless wars and by supporting terrorist groups like Hezbollah and Al Houthi militia and injecting billions in building a military industry using backward North Korean technology that would not be able to hold up against the highly developed technology.
Thus, the difference between the Gulf and Iranian approach is clear. The GCC states channel their financial resources in two parallel directions.
The first aims at enhancing development progress, boosting citizens living standards, offering job opportunities and diversifying sources of income, while the second aims to strengthen the defensive capabilities to protect their countries against Iranian ambition.
While focusing on armament and financing terrorist groups, the Iranian approach has forgotten what development means and led huge numbers of Iranians to live in cemeteries, wasting four decades of possible development.
Consequently, the Iranian people will have the devil to pay, not forgetting the alone the sheer volume of corruption that has spread in that country.
It goes without saying that the results of the Saudi-US agreement will come to light soon in the form of development projects, some of which will the first of its kind. And military-specific ones will boost the GCC’s defensive capabilities.
Dr Mohammad Al Asoomi is a UAE economic expert and specialist in economic and social development in the UAE and the GCC countries.
