RIYADH: Sami group, the Saudi national defence localisation champion, has announced a preliminary agreement with US aerospace company Boeing for setting up a joint venture company in the kingdom mainly aimed at scaling up the country’s aviation sector.
A subsidiary of the Saudi sovereign wealth fund Public Investment Fund, Sami combines the latest technologies and best national talents to develop military products and services at par with international standards across five business divisions – Aerospace, Land, Sea, Advanced Electronics and Defence System.
The announcement was made at a signing ceremony during the inaugural World Defence Show in Riyadh.
Commemorating the parties’ intention to sign the definitive agreements in the coming weeks, the ceremony was attended by top officials from both sides, including Tourism Minister and Sami chairman Ahmed Al Khateeb, Boeing executive vice-president and senior adviser Leanne Caret and Boeing Defence, Space and Security president and CEO Ted Colbert.
Al Khateeb said: “As we move towards the realisation of our Vision 2030 ambitions for a strengthened defence industry, our long-standing relations with industry leaders such as Boeing will further our success. This joint venture will help to enable more defence manufacturing to take place in Saudi Arabia, ensuring more jobs and prosperity in the Kingdom – now and for generations to come.”
As a leading manufacturer of commercial jetliners, space and security systems and provider of aviation services to both the commercial and defence sectors, Boeing will be executing a strategic role in the new kingdom-focused joint venture.
CEO Walid Abukhaled said the maintenance of the rotary fleets operated in Saudi Arabia by the different forces represents a major opportunity for localisation and development of new sustainable skills.
“Much of this work is currently outsourced to the US or Europe, while aircraft numbers in the kingdom are expected to double in the next 10 years. We also see this joint venture as a first step towards a broader strategic partnership between Boeing and Sami that will encompass additional platforms and services in the future.”
Under the agreement, the parties will work together through a limited liability company to provide maintenance, repair and overhaul and sustainment services for military rotary platforms currently operated in the kingdom.
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