In a ceremony witnessed by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and US President Donald Trump, Raytheon and the Saudi Arabia Military Industries Company signed a Memorandum of Understanding to cooperate on defense-related projects and technology development.
The agreement will enable continued global growth for Raytheon in key market areas such as Cyber Security of Defense Systems and Platforms, Air Defense Systems, Smart Munitions, and C4I Systems. This partnership will also contribute directly to Saudi Arabia’s localised defense ecosystem with regional expert capabilities, and will provide a long-term foundation for Saudi Arabia’s economic development.
“This strategic partnership is the next step in our over 50-year relationship in Saudi Arabia and a strong indicator of our continued global growth,” said Thomas Kennedy, Raytheon Chairman and CEO. “By working together, we can help build world-class defense and cyber capabilities in the Kingdom of Saudi Arabia.”
As part of this new agreement, Raytheon announced plans to establish Raytheon Arabia, a Saudi legal entity wholly-owned by Raytheon that will focus on implementing programs to create indigenous defense, aerospace and security capabilities in Saudi Arabia. The new company will be based in Riyadh and is expected to include in-country programme management, supply and sourcing capabilities, improved customer access and centralised accountability. These programs will positively impact Saudi and US economies including job creation.
Saudi Arabia also announced the creation of a new national military industries company. Wholly owned by the government, the new company forms a key part of Vision 2030. The company will initially manufacture products and provide services across four business units: Air Systems; Land Systems; Weapons and Missiles including ammunition; and Defense Electronics.
The company will establish companies through joint ventures with global original equipment manufacturers OEMs, as well as cooperating with local military companies. The Saudi Arabian Public Investment Fund announced the creation of a new national military industries company.
Saudi Arabian Military Industries will manufacture products and provide services across four business units: Air Systems, which includes maintenance and repair of fixed-wing aircraft as well as manufacturing and repair of unmanned air vehicles; Land Systems, which includes manufacturing and repair of military vehicles; Weapons and Missiles – including ammunition and Defense Electronics, which includes radars and sensors as well as communication systems and electronic warfare.
Wholly government-owned, Saudi Arabian Military Industries aims to become one of the world’s top 25 defense companies by 2030. It will directly contribute around SAR 14 billion to Saudi Arabia’s GDP in 2030, invest over SAR 6 billion in research and development by 2030, and create over 40,000 jobs, many of which will be in the engineering and technical fields. By partnering with universities, Saudi Arabian Military Industries will provide students with apprenticeships and careers in cutting edge technologies which were previously unavailable in the Kingdom.
In line with Vision 2030, Saudi Arabian Military Industries will contribute to diversifying the Saudi economy for the 21st century by reducing dependence on oil, while protecting and strengthening national security.
Saudi Arabian Military Industries’s four business units closely complement the Saudi Arabia’s future military requirements and build on existing local capabilities. Saudi Arabian Military Industries will establish companies through joint ventures with global original equipment manufacturers OEMs, as well as cooperating with local military companies. Saudi Arabian Military Industries will consider creating new business units, to ensure the company is aligned with the latest developments in the military industries sector.
Raytheon Company, with 2016 sales of $24 billion and 63,000 employees, is a technology and innovation leader specialising in defense, civil government and cybersecurity solutions.