SAMI Announces Joint Venture Agreement with Boeing

12.04.2022 Joint Ventures
SAMI Announces Joint Venture Agreement with Boeing

SAMI Announces Joint Venture Agreement with Boeing

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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).

Under the terms of the agreement, both companies will enter into a Kingdom-focused joint venture. 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.

The announcement was made at a signing ceremony during the inaugural World Defense Show which took place in Riyadh on 06-09 March 2022. 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.

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.”

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.”

“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 & Defense 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.

Saudi Arabian Military Industries (SAMI) was founded in May 2017 under the direction of HRH Prince Mohammad Bin Salman Al-Saud, Crown Prince, Deputy Prime Minister, and Minister of Defense of Saudi Arabia.

In January 2018, SAMI has started operations and its CEO was appointed.

SAMI acts act as a sustainable platform to provide world-class military products and services to Saudi Arabia and to support the Kingdom’s objective of localizing 50% of total government military spending.

SAMI’s vision is to be among the top 25 military industries ‎companies around the world by 2030.

Boeing is 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.

 

 
 

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