US to sell 5th-gen F-35 fighter jets to Saudi Arabia; shares of Lockheed Martin rise

Riyadh has long been seeking to buy F-35 fighter jets, currently only owned by Israel in the Middle East.

US President Donald Trump announced on Monday that the United States will move ahead with selling F-35 stealth fighter jets to Saudi Arabia, just a day before Saudi Crown Prince Mohammed bin Salman is scheduled to visit the White House.

“We will be doing that. We will be selling F-35s,” Trump told reporters when asked whether Washington would approve the sale during Tuesday’s meeting. “They’ve been a great ally,” he added.

Saudi Arabia has sought to acquire the advanced fighter jets for years, which are currently operated exclusively by Israel in the Middle East. Trump’s approval comes despite a New York Times report that U.S. officials had expressed concern that China could gain access to the aircraft’s sensitive technology if the sale moved forward.

The U.S. has so far restricted F-35 sales to its closest allies, including several NATO members and Israel. In 2019, Washington removed Turkey from the F-35 program after Ankara purchased a Russian air defense system, raising fears that Moscow could indirectly gain access to the aircraft’s systems.

Shares of Lockheed Martin Corp., the manufacturer of the F-35, rose by as much as 1.1% following Trump’s remarks, according to Bloomberg News.

F-35 jets, which cost around $100 million each, are among the most advanced fighter aircraft in the world. Trump’s expected approval comes despite Israel’s desire to maintain its exclusive access to the jets in the region, which it views as essential for preserving its military advantage.

Saudi Arabia has requested to buy as many as 48 F-35 fighter jets, a potential multibillion-dollar deal that has cleared a key Pentagon hurdle ahead of bin Salman's visit, Reuters reported early this month.

The Saudis have long been interested in Lockheed Martin's fighter.A senior White House official told Reuters before Trump spoke that the president wanted to talk to the crown prince about the jets, "then we'll make a determination."

A Pentagon report cited by the New York Times has also raised concerns that China could obtain the aircraft’s advanced technology if a sale to Saudi Arabia proceeded, pointing to Beijing’s defense ties with Riyadh.

*With Agency Inputs