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Saudi Arabian Military Industries (SAMI) and US aerospace manufacturer Boeing on Saturday signed a memorandum of agreement (MoA) to set up a new joint venture (JV) aiming to localize more than 55 percent of the maintenance, repair, and overhaul (MRO) services for fixed and rotary-wing military aircraft in the Kingdom.
Revenues are expected to exceed $22 billion, as the MoA will create 6,000 jobs and training opportunities for Saudis. It is also set to augment the participation of Saudi nationals in the industry and contribute towards the objectives of the Vision 2030 plan.
The agreement was inked during Crown Prince Mohammed bin Salman's official visit and tour of Boeing's aircraft manufacturing facilities in Seattle, US.
The new venture aims to support local content in a move to achieve the National Transformation Program goals and embrace Vision 2030.
The MoA will provide sustainment services for fixed- and rotary-wing military aircraft of Saudi military fleet and will be the sole provider of these services for all military aviation platforms of the military fleet, strengthening the Kingdom's defense capabilities and enhancing its deterrent potential, Boeing said in a statement issued on Saturday.
The agreement will also transfer technology to install weaponry on these aircraft and localize the supply chain for spare parts in the Kingdom, it added.
"SAMI is exploring all collaborative opportunities to build a strong autonomous military industries ecosystem in the Kingdom," said Ahmed Al-Khateeb, chairman of SAMI.
The investment value will reach $450 million in facilities and equipment inside the Kingdom, Boeing added.
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