Boeing and state-owned company Saudi Arabian Military Industries have agreed to form a joint venture that seeks to localize in Saudi Arabia at least 55 percent of maintenance, repair and overhaul services for the Middle Eastern country's fleet of rotary- and fixed-wing military planes.
The memorandum of agreement signed by Dennis Muilenburg, Boeing chairman, president and CEO, and SAMI Chairman Ahmed Al-Khateeb includes technology transfer to facilitate the installation of weapon systems on Saudi's military aircraft fleet and supply chain localization for spare parts, Boeing said Friday.
“With this local capability dedicated to sustaining all U.S.-made defense platforms, we can better serve our customers and support the Kingdom’s goals of localization and economic growth,“ said Leanne Caret, president and CEO of Boeing's defense, space and security segment and a 2018 Wash100 recipient.
The Boeing-SAMI joint venture is expected to offer training opportunities, generate $22 billion in revenues and create approximately 6,000 jobs in Saudi Arabia by 2030 in support of the country's Vision 2030 and National Transformation Program.
Boeing said investment in Saudi facilities and equipment could reach approximately $450 million through its partnership with SAMI.
The companies signed the agreement in conjunction with Saudi Crown Prince Mohammed bin Salman bin Abdulaziz's visit to Seattle, Washington, that included a tour of Boeing's aircraft production facilities.