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Saudi Arabian Military Industries and Boeing Form Joint Venture Partnership Targeting 55% Localization

With revenues to exceed $22 billion and 6,000 jobs by 2030. Partnership to provide sustainment services for fixed- and rotary-wing military aircraft of KSA military fleet

Issue 81

In line with Saudi Arabia’s Vision 2030 and following the announcement of HRH Prince Mohammed bin Salman bin Abdulaziz, Crowne Prince, Deputy Chairman of the Council of Ministers and Minster of Defense, to localize 50% of the total military spending by 2030, Saudi Arabian Military Industries (SAMI) and Boeing have signed a Memorandum of Agreement (MoA) to develop a new joint venture (JV) aiming to localize more than 55% of the MRO services for fixed and rotary-wing military aircraft in Saudi Arabia on 30th March. The agreement will also transfer technology to install weaponry on these aircraft as well as localize the supply chain for spare parts in the Kingdom.

The signing ceremony came in conjunction with HRH 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 H.E. 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 ceremony also included a comprehensive visit to the manufacturing facilities of Boeing, featuring a detailed explanation of the company’s operations.