Riyadh - SAMI group, a wholly owned subsidiary of the Public Investment Fund and the Kingdom’s national defense localization champion, has announced a preliminary agreement with The Boeing Company (Boeing), the world's largest aerospace company and leading manufacturer of commercial jetliners, defense, space and security systems, and provider of aviation services to both the commercial and defense sectors.
Under the terms of the agreement, both companies will enter into a Kingdom-focused joint venture.
The announcement was made at a signing ceremony during the inaugural World Defense Show in Riyadh.
Commemorating the parties’ intention to sign the definitive agreements in the coming weeks, the ceremony was attended by top officials from both sides, including His Excellency Ahmed Al-Khateeb, Minister of Tourism and Chairman of SAMI, Leanne Caret, Executive Vice President and Senior Advisor to Boeing Company and Ted Colbert, President and CEO of Boeing Defense, Space and Security.
Commenting on the agreement, His Excellency Ahmed Al Khateeb, Chairman of SAMI, said: “As we move towards the realization of our Vision 2030 ambitions for a strengthened defense industry, our long-standing relations with industry leaders such as Boeing will further our success. This joint venture will help to enable more defense manufacturing to take place in Saudi Arabia, ensuring more jobs and prosperity in the Kingdom - now and for generations to come."
Commenting on the agreement, Eng. Walid Abukhaled, CEO of SAMI, said: “The maintenance of the rotary fleets operated in the Kingdom by the different forces represents a major opportunity for localization and development of new sustainable skills. Much of this work is currently outsourced to the US or Europe, while aircraft numbers in the Kingdom are expected to double in the next ten years. We also see this joint venture as a first step towards a broader strategic partnership between Boeing and SAMI that will encompass additional platforms and services in the future.”
Under the agreement, the parties will work together through a limited liability company to provide maintenance, repair and overhaul and sustainment services for military rotary platforms currently operated in the Kingdom.
“We are proud of the long-standing 77-year relationship that Boeing has with the Kingdom of Saudi Arabia,” said Torbjorn Sjogren, VP, Boeing International Government & Defence Organization.
“This agreement will provide maintenance, repair and overhaul services for the Kingdom’s rotorcraft platforms. It is an excellent example of our alignment with the Kingdom’s Vision 2030.”
“We're committed to our partnership with SAMI, and will continue to work with our stakeholders in the Kingdom to execute on Vision 2030,” he added.