The designation follows the signing of a strategic defense agreement between the two countries.
US President Donald Trump has said Saudi Arabia was being designated as a "major, non-NATO ally."
"We’re taking our military cooperation to even greater heights by formally designating Saudi Arabia as a major, non-NATO ally, which is something that is very important to them," Trump said at a dinner with the Saudi Crown Prince on Tuesday evening.
The designation follows the signing of a strategic defence agreement between the two countries, which Saudi media described as a significant step that strengthens long-term defence cooperation and reflects the partners’ shared commitment to supporting peace, security and prosperity in the region.
The United States and Saudi Arabia also signed agreements in the fields of civilian nuclear energy and defence during the Crown Prince’s visit to Washington, according to a White House statement.
The US administration said the two sides approved a "joint declaration" on civilian nuclear energy, establishing the legal basis for cooperation worth billions of dollars over coming decades.
The White House said this would be carried out in accordance with nuclear non-proliferation rules.
President Trump also approved an arms deal that includes F-35 fighter jets.
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Source: TRT