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A lot of action at the World Defense Show: Saudi Arabian Military Industries (Sami) inked 11 agreements or MOUs with global defense firms during the second day of the World Defense Show in Riyadh, state news agency SPA reported yesterday. Sami is the PIF’s national defense and security champion. No full breakdown on the agreements was disclosed, but we know that US arms maker Lockheed Martin is at least one of them.
#1- The agreement with Lockheed Martin will see defense firms in the Kingdom manufacturing components for Lockheed’s missile defense system, Reuters reported, citing a statement by the company. Such sub-contracts for the Terminal High Altitude Area Defense (Thaad) system to boost the Kingdom’s manufacturing capacities and help exchange expertise, it added. Local firms receiving sub-contracts include the Middle East Propulsion Company (Mepc) and Arabian International Company for Steel.
#2- And a lot from Boeing: The government is currently examining a potential project with Boeing to set up an aircraft-grade aluminum manufacturing plant, Boeing Saudi Arabia President Asaad Al Jomoai told Al Eqitsadiyah. The talks are being led by the PIF, Industry Ministry and Mineral Resources and state-owned mining giant Ma’aden. The project’s feasibility studies are set to be finalized this year before making its way to the PIF for review and approval if an agreement is reached, he said.
#3- Boeing has submitted a request to set up a regional HQ in Riyadh, he said, expecting an approval from the Investment Ministry in the next few months. Separately, national shipping company Bahri subsidiary Bahri Logistics signed a MoU with Boeing to boost supply chain operations in the Kingdom for the global aerospace company in the Kingdom, its President Soror Basalom told Asharq Business in an interview (watch, runtime: 2:40).
#4- Sami signed a preliminary agreement with Qatar’s Barzan Holdings — the procurement arm of the Defense Ministry. It’s a first-of-its-kind agreement between the two defense firms in the neighboring countries, the Qatari company’s CEO, Abdullah Al Khater, told Reuters. “We would like to explore some quick wins with them and think about longer term opportunities as well,” he said without disclosing details on the projects.
#5- Airbus said it’s currently in negotiations with the Kingdom to sell it more A330 multi-role tanker transport, the European company’s head of air power Jean-Brice Dumond told Bloomberg in an interview. Any purchase would add up to the six Airbus MRTTs owned by the Kingdom as it looks to bolster its air force capabilities. The Airbus MRTT is an aerial refueling and military transport aircraft used to transport troops, cargo and others.
#6- And an interest in A400Ms? The Kingdom is also looking to purchase the Airbus A400M turboprop military transport, Dumond told Bloomberg. “We know there is an interest in the A400M, and we will address it with the Saudi Air Force and the Ministry of Defence,” he said. The talks are being conducted through Airbus’s JV with Sami, in which Airbus holds a 49% stake.
#7- Eurofighters are officially back on the table: The Kingdom is also set to make orders for more Eurofighter jets, with the potential order coming a month after Germany lifted an earlier objection on the sale of Eurofighter jets to here following the aftermath of October 7 attacks. The Kingdom is reportedly looking to purchase 48 Eurofighters after buying 72 of the jets in 2007 from UK’s BAE Systems for c. GBP 4.4 bn. The advanced combat aircraft is developed by Airbus, UK’s BAE Systems and Italy’s Leonardo.
#8- And Rafales:The Kingdom is also in talks with France’s Dassault Aviation to purchase Rafale fighters jets, according to Bloomberg. It is reportedly looking to acquire 54 Rafales.
We also got a sneak of the locally assembled Hawk T-165 jets, which was assembled through 3.1k parts supplied from 25 local companies, SPA reported.
REMEMBER- The Kingdom has a target of localizing over 50% of its military equipment spending by 2030.
Also at the World Defense Show:
- KSA+South Korea: The Defense Ministry signed an agreement with its South Korean counterpart for military industries cooperation.
- And Pakistan: The Defense Ministry signed two MoUs with Pakistan’s Defense Ministry.
- KSA + Russia: Defense Minister Prince Khalid bin Salman discussed joint cooperation in military industries with Russian Deputy PM and Industry and Trade Minister Denis Manturov. The Russian minister also discussed cooperation in industrial and mining sectors with Industry and Mineral Resources Minister Bandar Al Khorayef in a separate meeting.
