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Saudi Military Industries, Boeing in deal to set up aviation JV
Sami Group, a subsidiary of Saudi wealth fund PIF and the kingdom’s national defence localisation champion, has announced plans to set up a joint venture with leading US aerospace company Boeing mainly aimed at scaling up the kingdom’s aviation sector.
Sami group, the Saudi national defense localization 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 PIF (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 Defense System.
The announcement was made at a signing ceremony during the inaugural World Defense 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 Ahmed Al Khateeb, Minister of Tourism and Chairman of SAMI, Leanne Caret, Executive Vice President and Senior Advisor to Boeing Company and Ted Colbert, President and CEO of Boeing Defense, Space and Security.
On the agreement, Al Khateeb said: "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."
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 Engineer Walid Abukhaled said the maintenance of the rotary fleets operated in Saudi Arabia 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," stated the Sami official.
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.
Torbjorn Sjogren, VP, Boeing International Government & Defence Organization. said: “We are proud of the long-standing 77-year relationship that Boeing has with 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,” he added.-TradeArabia News Service