CORPORATE / NEWS
In line with Saudi Arabia’s Vision 2030 and following the announcement of Prince Mohammed bin Salman bin Abdulaziz, Crowne Prince, Deputy Chairman of the Council of Ministers and Minister of Defense, to localise 50 per cent of the total military spending by 2030, Saudi Arabian Military Industries (SAMI) and Boeing recently signed a Memorandum of Agreement (MoA) to develop a new joint venture (JV) aiming to localise more than 55 per cent of the MRO services for fixed and rotary-wing military aircraft in Saudi Arabia. The agreement will also transfer technology to install weaponry on these aircraft as well as localise the supply chain for spare parts in the Kingdom.
The signing ceremony came in conjunction with Prince Mohammed bin Salman’s visit to Seattle, which included an official visit and tour of Boeing’s aircraft manufacturing facilities. The agreement was signed by Ahmed Al-Khateeb, Chairman of SAMI, and Dennis Muilenburg, Chairman, President, and CEO of Boeing, at Boeing’s commercial manufacturing facility in Everett, Wash.
The JV agreement will provide sustainment services for fixed and rotary-wing military aircraft of the KSA military fleet and will be the sole provider of these services for all military aviation platforms of the KSA military fleet, strengthening the Kingdom’s defense capabilities and enhancing its deterrent potential.
“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,” said Dennis Muilenburg, Boeing Chairman, President, and CEO. “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.”
The agreement will create 6,000 jobs and training opportunities for Saudi youth, support local content, improve Saudization levels in the industry, and assist towards achieving the ambitious Vision 2030 plan.