In February 2019, the Saudi Arabian Military Industries Company (SAMI) and Naval Group, a French naval defense company, have entered into a Memorandum of Agreement (MoA) to create a Joint Venture (JV) company in Saudi Arabia’s naval defense domain.
Signed on the sidelines of the recent International Defence Exhibition and Conference (IDEX 2019) which took place in Abu Dhabi, UAE earlier this year (17-21 February), the MoA sets out the framework for the establishment of this joint venture that will further strengthen Saudi Arabia’s efforts focused on localizing essential industrial skills and capabilities.
The joint venture company will be at the helm of naval programs for the Royal Saudi Naval Forces and will support its existing and future requirements for state-of-the-art systems, including full life-cycle support of these systems.
Dr. Andreas Schwer, CEO of SAMI, said: “Our joint venture agreement with Naval Group laid the foundation of a strategic partnership that will reinforce SAMI’s commitment to helping Saudi Arabia develop self-sufficient defense capabilities. The collaboration offers us an excellent opportunity to leverage Naval Group’s strong track-record of helping its partners develop sovereign defense capabilities to create an integrated military industries ecosystem in the Kingdom.”
“Through design, construction, and maintenance activities, the Joint Venture will contribute significantly to further enhancing the capabilities and readiness of our Royal Saudi Naval Forces.”Dr. Schwer added
Building on the longstanding partnership between the Kingdom of Saudi Arabia and Naval Group, the Joint Venture aims to play a key role in helping achieve the objectives of the Saudi Vision 2030 by maximizing local content and creating highly skilled jobs for Saudis.
Saudi Arabia set up SAMI in 2017 to develop manufacturing capabilities with the aim of producing half of the country’s required military equipment domestically by 2030.
Naval Group is a European leader in naval defense. As an international high-tech company, Naval Group uses its extraordinary know-how, unique industrial resources and capacity to arrange innovative strategic partnerships to meet its customers’ requirements.
The group designs, builds and supports submarines and surface ships. It also supplies services to shipyards and naval bases. In addition, the group offers a wide range of marine renewable energy solutions. Attentive to corporate social responsibility, Naval Group adheres to the United Nations Global Compact.
In 2018, the group reported revenues of €3.6 billion and has a workforce of 14,860.