Saudi Arabian Military Industries (SAMI) has signed a Memorandum of Understanding (MoU) with Russia’s state company Rosoboronexport for procurement of several armament systems.
The Saudi Arabian Ministry of Defense signed contracts for the S-400 air defence system, the Kornet-EM system, the TOS-1A, the AGS-30, and the Kalashnikov AK-103.
The MoU was signed on the assurance that the Russian party will transfer the technology and localise the manufacturing and sustainment of the armament systems.
As per the terms of the MoU, technology transfer is expected to take place for the local production of the Kornet-EM anti-tank guided missile (ATGM) system, the TOS-1A advanced multiple rocket launcher, and AGS-30 automatic grenade launchers with missiles.
Plans are also underway for the local manufacture and sustainment of the S-400 air defence system parts.
A General Terms and Conditions contract was also signed for the regional production of the Kalashnikov AK -103 and its ammunition.
Educational and training programmes for Saudi nationals are also part of the agreements, which are expected to generate hundreds of direct jobs to ensure the Saudi Arabian military industries sector’s sustainability and development.
SAMI will act as a catalyst in achieving the goals set out in Vision 2030, according to which 50% of Saudi Arabia’s military spending will be localised.
The US State Department has approved an estimated $15bn possible sale of a THAAD anti-missile defence system to Saudi Arabia.