Saudi Arabian Military Industries (SAMI) and Boeing are set to form a joint venture (JV) to provide sustainment services for the Middle East nation’s military aircraft.
Said to be in line with Saudi Arabia’s Vision 2030, the new JV will act as the sole provider of the services for all of Saudi Arabia’s military aviation platforms, including fixed and rotary-wing aircraft.
The JV will also improve the Kingdom’s military fleet readiness, enhance performance and maintenance, as well as reduce support costs.
To this end, the companies have signed a Memorandum of Agreement (MoA) that will see the transfer of technology for the deployment of weaponry on these aircraft.
Boeing chairman, president, and CEO Dennis Muilenburg said: “We deeply appreciate the trust that the Kingdom of Saudi Arabia in general, and HRH Prince Mohammed bin Salman personally, are placing in Boeing to help deliver Vision 2030 with this new joint venture.
“Our relationship with the Kingdom dates back more than 70 years, and we look forward to continuing our successful partnership in support of the Kingdom’s national security and aerospace industry needs.”
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The agreement will also help establish a local supply chain for spare parts in the country and localisation of maintenance, repair and overhaul services (MRO).
Muilenburg added: “With this local capability dedicated to sustaining all US-made defence platforms, we can better serve our customers and support the Kingdom’s goals of localisation and economic growth.”
The partnership is also expected to boost Boeing’s presence in the country and provide collaborative opportunities in the development of local research, design, engineering, manufacturing, and MRO capabilities.
About 6,000 jobs and training opportunities will be created for Saudi nationals as part of the agreement.