Saudi Arabian Military Industries (SAMI), a wholly-owned subsidiary of the Public Investment Fund (PIF) and the National Champion of Military Industries Localization, along with Airbus have recently entered into an agreement for forming out a joint venture on military aviation services and maintenance, repair, and overhaul (MRO) capabilities.
This announcement was done during the Saudi-French Investment forum held during the sidelines of the visit of the President of France Emmanuel Macron to Saudi Arabia.
Bottom: – From L to R: – Bruno Even, Member Airbus Group Executive Committee, Eng. Walid Abukhaled- SAMI CEO
The agreement was signed between Eng. Walid Abukhaled, CEO of SAMI, and Bruno Even, Member of the Airbus Group Executive Committee.
Statement from H.E. Mr. Ahmed bin Aqeel Al-Khateeb, Chairman of SAMI
Commenting on his views on the announcement, he stated: “The signing of today’s joint venture agreement with Airbus represents another important milestone on our journey to establish SAMI as a local and regional leader in the defense industry. This strategic partnership is in line with SAMI’s vision to be among the world’s top 25 defense companies and the Saudi Vision 2030 objective to localize more than 50 percent of the Kingdom’s military spending by 2030.”
He further added out: “This also comes as part of our long-term strategy of partnering with leading global aerospace players. We look forward to working together to enhance local capabilities and develop a robust and sustainable aviation MRO ecosystem.”
Statement from SAMI CEO Eng. Walid Abukhaled
As per his views regarding the announcement, he stated, “We are pleased to partner with Airbus for the launch of this joint venture. The new Saudi entity will capitalize on Airbus’ extensive experience and leading-edge capabilities to pave the way for the rapid growth of the military aviation services sector in Saudi Arabia.”
He further added that: “In addition to accelerating the transfer of technology and expertise to the Kingdom, the agreement will further strengthen the local supply chain and help ensure the self-sufficiency of the national defense sector.”
The joint venture is all anticipated to be operational within the initial quarter of 2022 and will be headquartered in Riyadh with some presence at the Prince Sultan Air Base in Al-Kharj. The joint venture will be operational post subjected to securing mandatory regulatory and competition approvals.
As per the interim reports, SAMI will hold a 51-percent shareholding, and Airbus will own the remaining stakes in the new entity. The core focus will be on the creation of a robust and sustainable aviation services sector thriving on local competencies and talent, as well as boosting up the native supply chain within the industry.
The latest entity will play a role in the progression of the domestic military industries sector to build upon the latest quality jobs for Saudis, boosting up the Kingdom’s defense self-sufficiency, and driving expansion in the national economy in line with the intentions of Vision 2030.
The joint venture’s solutions and services will initially cater to the entire MRO spectrum of the Airbus military fixed wings fleet, comprising A330MRTT and C295, with the opportunity of expansion to other platforms in the future.
As per the firm’s announcement, the primary focus is on the contribution of boosting the operational readiness, improving logistics and supply chain support, augmented indigenous design and upgrade capability and curbing the reliance on foreign engineering support within Saudi Arabia’s military industries ecosystem.
Press Release recceived on mail from SAMI
