TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Saudi arms producer in defense venture with Lockheed Martin

The deal was announced by Saudi Arabian Military Industries (SAMI), which said it will own 51 percent of the venture, as it seeks to boost the kingdom's military capabilities.

  (Agence France-Presse)
Riyadh
Mon, February 22, 2021

Share This Article

Change Size

Saudi arms producer in defense venture with Lockheed Martin This picture taken on Nov.18, 2019 shows a Lockheed Martin F-22 Raptor all-weather stealth tactical fighter aircraft on display during the 2019 Dubai Airshow. (AFP/Karim Sahib)

S

audi Arabia's state arms producer signed an agreement Sunday with US contractor Lockheed Martin to form a joint venture, a statement said, as Washington reviews weapons sales to the kingdom.

The deal was announced by Saudi Arabian Military Industries (SAMI), which said it will own 51 percent of the venture, as it seeks to boost the kingdom's military capabilities.

"The joint venture is aimed at developing localization capabilities through the transfer of technology and knowledge and training of Saudi nationals to manufacture products and provide services to the kingdom's armed forces," SAMI said in a statement.

Saudi Arabia has long been a major global arms importer.

But some Western countries now refuse to sell weapons to the kingdom over its role in the conflict in neighboring Yemen, gripped by what the United Nations calls the world's worst humanitarian crisis.

Earlier this month, US President Joe Biden's administration announced it was ending support for Saudi Arabia's offensive operations in Yemen's devastating war.

Biden's administration also said it was reviewing weapons sales to the kingdom.

But Lockheed Martin's vice president Timothy Cahill said Sunday's deal marked a "major milestone" for the US company.

"This agreement is in line with Lockheed Martin's strategy to expand its partnership with the kingdom by providing reliable defense and security solutions," Cahill was quoted as saying in the statement. 

In 2017, Saudi Arabia's Public Investment Fund set up SAMI to manufacture arms locally, with the fund expecting it to become one of the world's top defense companies by 2030.

Lockheed Martin is among the contractors involved in a project to install a $15 billion Terminal High Altitude Area Defense (THAAD) missile defense system in Saudi Arabia, which was part of a major arms deal approved by former US president Donald Trump in 2017.

Saudi Arabia seeks to boost its defense capabilities as it confronts missile or drone attacks from Yemen's Iran-backed Huthi rebels since it launched a military intervention against them in 2015.

{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.