Saudi Arabian Military Industries (SAMI), a wholly-owned subsidiary of the Public Investment Fund (PIF), has signed a preliminary agreement with US-based leading aerospace company Boeing to create a Kingdom-focused joint venture.
The company said in a statement that the parties will work together through the limited liability company to provide maintenance, repair and overhaul, and sustainment services for military rotary platforms currently operating in the Kingdom.
Commenting on the agreement, His Excellency Ahmed Al Khateeb, Chairman of SAMI said that, “As we move towards the realization of our Vision 2030 ambitions for a strengthened defense industry, our long-standing relations with industry leaders such as Boeing will further our success. This joint venture will help to enable more defense manufacturing to take place in Saudi Arabia, ensuring more jobs and prosperity in the Kingdom – now and for generations to come.”
“The maintenance of the rotary fleets operated in the Kingdom by the different forces represents a major opportunity for localization 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 ten 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.”
Mr. Torbjorn Sjogren, VP, Boeing International Government & Defence Organization commented that, “We are proud of the long-standing 77-year relationship that Boeing has with the Kingdom of Saudi Arabia. This agreement will provide maintenance, repair, and overhaul services for the Kingdom’s rotorcraft platforms.”
“It is an excellent example of our alignment with the Kingdom’s Vision 2030. We’re committed to our partnership with SAMI, and will continue to work with our stakeholders in the Kingdom to execute on Vision 2030,” Mr. Sjogren added.