What is a fifth-generation fighter jet?

A fifth-generation fighter jet, like the F-35, is built with stealth technology that makes it far harder to detect on radar than older aircraft. It also combines advanced sensors, radar and mission systems into one platform. Saudi Arabia's current fleet doesn't include this tier of aircraft, so adding F-35s would mark a major capability upgrade.

What does government-to-government approval mean for arms sales?

It's a formal step where the US State Department clears the way for a potential deal, but it doesn't guarantee the sale will happen. A signed contract, delivery timeline and Congressional review still need to follow. These approvals can sit for months before turning into a finalised agreement.

How does the Saudi F-35 deal affect Lockheed Martin and RTX?

Lockheed Martin builds the F-35, so a Saudi order would extend its already substantial order backlog with years of related maintenance and training contracts. RTX benefits through its Pratt & Whitney division, which makes the F135 engine powering every F-35, plus radar and mission systems. Neither firm's share price is likely to move sharply on approval alone, as contracts unfold gradually.

Why is Gulf defence spending increasing right now?

Saudi Arabia, the UAE and other Gulf states have been ramping up military budgets in response to an unstable regional environment and ongoing Middle East tensions. Washington has approved several arms packages to the region recently, and this pattern of heavy spending on Western hardware may continue. Each deal, however, carries its own political hurdles and isn't guaranteed to proceed.

Can I invest in defence stocks like Lockheed Martin with a small amount?

Yes, Nemo offers fractional shares starting from just $1, so you don't need large capital to invest in companies like Lockheed Martin or RTX. The ADGM-regulated platform also provides commission-free trading and AI-driven research to help you explore defence sector opportunities. Remember, all investments carry risk and you could lose money.

Riyadh's F-35 Green Light Reshapes Gulf Defence Bets

Aimee Silverwood | Financial Analyst

• 5 min read

• Published on 18 September 2026

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Riyadh's F-35 Green Light Reshapes Gulf Defence Bets

Aimee Silverwood | Financial Analyst

• 5 min read

• Published on 18 September 2026

Hey! We are Nemo.

Download the App

Scan the QR code to download the Nemo app and start investing on Nemo today

Invest Today on Nemo

The $24 Billion Stealth Fighter Gamble

The Green Light. Washington just cleared a mammoth F-35 Saudi Arabia sale worth $24.3bn, ratcheting up advanced air power as recent airstrikes force Gulf powers to fortify regional borders.
The Backlog Bonanza. Institutional capital is sizing up prime contractors, because the proposed Lockheed Martin Saudi F-35 deal and engine maker RTX could lock in decades of lucrative equipment maintenance and technical support.
Levelling The Field. Everyday investors do not need sovereign budgets to track defence stocks Middle East tensions are pushing into focus. Regulated broker platforms now offer fractional shares and AI-driven research, making strategic sector diversification accessible from small amounts.
The Capitol Snag. Headline approvals are never guaranteed cheques. Any US arms sale Saudi Arabia 2026 timeline could easily encounter political resistance in congressional reviews, while complex delivery schedules mean actual revenues might take years to materialise.

Zero commission trading

Why Washington’s Big Saudi Jet Deal May Deliver Profits, But Not Without Turbulence

If there is one eternal truth in global politics, it is that chaos has an extraordinarily reliable profit margin. Whenever the Middle East grows precarious, someone in Washington invariably dusts off an arms catalogue.

Now, we have the latest blockbuster. The US State Department has provisionally approved a colossal 24.3 billion dollar sale of F-35 fighter jets to Saudi Arabia. On paper, it sounds like an absolute jackpot for American defence contractors. But to me, before anyone starts planning an early retirement on the back of it, a touch of sober British cynicism is in order.

Let us look at the prime beneficiaries. Lockheed Martin crafts the stealth airframe, while RTX, through its Pratt and Whitney arm, provides the howling engines and intricate mission systems. If this transaction crosses the line, it guarantees decades of lucrative maintenance, spare parts, and pilot training. It represents a textbook play in the Aftermath of Airstrikes: Defense & Energy Fortification, where nervous regimes rush to purchase an impenetrable shield for their borders and oilfields.

Paper approvals do not buy groceries.

That is the cold reality every investor needs to remember. A diplomatic green light is merely permission to begin the proper bickering. For starters, Capitol Hill still gets a say, and American politicians love few things more than grandstanding over Gulf foreign policy. Then there is Israel, whose legally mandated qualitative military edge over its neighbours must be rigorously defended by American law.

Could this deal hit the buffers? Absolutely.

Even if formal contracts are inked, defence procurements move at the glacial pace of an ossified bureaucracy. Metal will not be cut tomorrow, and cash will not magically cascade into balance sheets next quarter. Headline figures dazzle, but production bottlenecks, diplomatic tantrums, and regional shifts can delay deliveries for years.

Do these aerospace giants look well placed in an increasingly dangerous world? Quite possibly. The appetite for advanced hardware is certainly not waning. But treating a government clearance as a guaranteed windfall is pure folly. Keep your eyes on congressional debates and binding contracts before assuming this multi-billion dollar bird has actually landed.

Deep Dive

Market & Opportunity

The US State Department approved a potential sale of fifth-generation F-35 fighter jets to Saudi Arabia valued at up to 24.3 billion dollars.
Research by Nemo, which operates under an ADGM FSRA licence alongside partners Exinity and DriveWealth, shows this represents one of the largest single Western defence export approvals to the Gulf region in recent years.
Gulf nations are increasing military spending to modernise their equipment amid regional instability, which could support sustained international demand for aerospace hardware.
Advanced fighter jet packages include multi-year agreements for spare parts, maintenance, and flight training, which can build recurring revenue over several decades.

Key Companies

Lockheed Martin (LMT): Core technology includes the fifth-generation F-35 stealth aircraft for allied defence fleets, with the programme serving as the largest single revenue driver for the company, and full performance metrics can be tracked on the Nemo landing page.
RTX Corporation (RTX): Core technology includes Pratt and Whitney F135 engines, radar units, and onboard mission systems for military aircraft, with long-term servicing agreements providing regular cash flow, and further company data is available on the Nemo landing page.

View the full Basket:Aftermath of Airstrikes: Defense & Energy Fortification

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Primary Risk Factors

The potential sale is not a finalised contract, meaning it still requires direct bilateral negotiations that could stall before any delivery occurs.
The transaction must undergo a mandatory review by the US Congress, where lawmakers could seek revisions, delay approvals, or place conditions on the agreement.
American legal commitments to maintain the qualitative military edge of Israel in the region could complicate final specifications and delivery schedules.
Defence contract values unfold gradually across several years, and headline announcements do not produce immediate corporate revenue.
All investments carry risk and you may lose money.

Growth Catalysts

The formal signing of purchase contracts could expand long-term manufacturing backlogs for major aerospace contractors.
Regional security demands across the Middle East may encourage neighbouring partner nations to seek similar modernisation packages.
Ongoing aircraft servicing, parts supply, and technology upgrades create reliable long-term cash flow after airframes are delivered.

How to invest in this opportunity

View the full Basket:Aftermath of Airstrikes: Defense & Energy Fortification

15 Handpicked stocks

Riyadh's F-35 Green Light Reshapes Gulf Defence Bets

Riyadh's F-35 Green Light Reshapes Gulf Defence Bets

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The $24 Billion Stealth Fighter Gamble

Why Washington’s Big Saudi Jet Deal May Deliver Profits, But Not Without Turbulence

Deep Dive

Market & Opportunity

Key Companies

Primary Risk Factors

Growth Catalysts

How to invest in this opportunity

Frequently Asked Questions

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