The Saudi Arabian Military Industries Corporation (SAMI), owned by the Saudi Public Investment Fund, and the US ‘Lockheed Martin’ arms manufacturer, announced the signing of an agreement to establish a joint venture for cooperation between the two companies. The cooperation would be in the field of strengthening Saudi Arabia’s defense and security capabilities and supporting its manufacturing capabilities.
The agreement was signed by Walid Abu Khaled, CEO of the Saudi Military Industries Corporation, and Timothy Cahill, Senior Vice President of Lockheed Martin for the International Sector, on the sidelines of the International Defense Exhibition and Conference (IDEX) in Abu Dhabi.
Under the agreement, the Saudi company will own 51% of the joint venture’s shares in exchange for 49% for Lockheed Martin.
The new agreement will “develop the capabilities of Emiratization through the transfer of technology, knowledge, and training of Saudi cadres to manufacture products and provide services for the benefit of the Saudi Armed Forces.”
Abu Khaled said, “In keeping with the goals of the Kingdom’s Vision 2030, we at SAMI are exploring areas of cooperation that help us build a sustainable and self-sufficient military industries sector in the Kingdom. Our strong and long-term partnership with Lockheed Martin confirms our full commitment.”
He added: “The joint venture agreement constitutes a major step in our journey to achieve our ambitious goals, and we look forward to recording huge results in the near future.
This partnership will also contribute to the efforts of the Public Investment Fund through SAMI in localizing the latest technologies and knowledge, as well as building strategic economic partnerships.”
For his part, Timothy Cahill said: “Today we are laying an important cornerstone in our strategic relationship with SAMI, which is part of our long-term commitment to support the Kingdom’s plans for localization and economic growth. This agreement is part of Lockheed Martin’s strategy to expand our partnership with the Kingdom of Saudi Arabia by providing certified defense and security solutions that will support security and prosperity for decades to come. “