The program is expected to net more than $426 billion in investments by 2030 and create 1.6 million jobs, according to a government statement.

As part of the Vision 2030 economic approach, Riyadh wants at least half of the equipment it will need for national security and its military to be locally produced by 2030.

The kingdom also reorganized the government to better manage the growth of the domestic defense industry. In May 2017, the country stood up the state-owned defense company Saudi Arabian Military Industries, or SAMI, which engages in domestic and regional markets. The General Authority for Military Industries was also created to coordinate weapons procurement as well as research and development with an emphasis on local sourcing.

“No doubt the regional defense industry has become highly aware of the importance of building and developing its own military equipment to break free from the international constraints,” said a Saudi military source, speaking on condition of anonymity. “The Saudis are diversifying their economic status so not to remain dependent on oil and have an industrial base for various civil and military areas, while providing the needs of their armed forces and security agencies and make their country a more self-sufficient one.”

Among the deals announced as part of last month’s revealed plan was an agreement with French aerospace and defense company Thales and CMI of Belgium for military-industrial cooperation.

Commenting on its part in the deal, Thales told Defense News: “In line with Vision 2030, the company is developing several partnerships with local companies and universities in the Kingdom in order to address the country and the region[al] needs in the field of high technologies.”

Regional implications

But what does Vision 2030 mean for other Mideast states?

For retired Kuwait Air Force Col. Zafer Alajmi, effort may serve an incentive for Arab countries to circumvent Riyadh. The former officer says Gulf countries have come a long way in overcoming deteriorating relations in the region as a result of the war in Yemen – the Arab coalition, created to target Houthi rebels, provided an opening for defense cooperation between non-Saudi states.

To Alajmi’s point, Saudi Arabia’s economic approach is to create a regional powerhouse; in response, other Gulf nations may turn to each other to mitigate the effects of a neighbor dominating the Mideast defense industry.

“When the Vision 2030 program was established, it became quite apparent … that Riyadh was looking to become stronger in terms of defense than other countries such as South Korea or some Western nations,” according to Amjad Taha, the regional chief of the British Middle East Center for Studies and Research. “Achieving the defense scheme within the Saudi Vision 2030 means providing economic benefits and increasing the country’s autonomy in the decade ahead, just like Turkey.”

“Therefore, Saudi Arabia has sought to lower its dependence on arms imports by building up its own defense industry and has also considered diversifying the sources of its arms by looking to suppliers such as Russia and China,” he added. “Changing the scheme from a ‘supplier-vendor’ relationship to a ‘partnership model’ one means the country will form its own defense [artillery] and armament while selling it to its alliances.”

Taha also noted that Saudi Arabia is positioning Vision 2030 as a means to counter “a Turkish-Iranian axis” and bring peace to an unpredictable Middle East.

“Per the wealth of Saudi and thrilled ambition of Crown Prince Mohammad Bin Salman, Saudi Arabia’s defense by 2030 will be stronger than Turkey, if not equal, which is somewhat already irritating Ankara’s regime — what may explain their dogmatic rivalry with Riyadh,” the analyst said.

The two countries took separate paths in June 2017 when Saudi Arabia, Bahrain, the UAE and Egypt severed ties with Qatar, accusing its government of supporting “terrorism” and destabilizing the region. Saudi Arabia closed its land border with Qatar, through which much of its food supply crossed; Turkey immediately sent aid and supplies to Qatar.

And October 2018 saw the two countries clash over the death of Saudi journalist Jamal Khashoggi. Turkish President Recep Tayyip Erdogan alleged an order to kill Khashoggi in the Saudi Consulate in Istanbul came from the highest level of Saudi leadership. Turkish Defense Minister Hulusi Akar accused Saudi Arabia of sending an 18-member “kill team” to commit the murder.

As for whether Saudi Arabia can achieve its economic goals, Pieter D. Wezeman of the Stockholm International Peace Research Institute questions the kingdom’s timeline.

“Given the challenges that Saudi Arabia faces in developing its industrial base more generally, and the difficulties other countries have faced when pursuing military industrialization, the extent to which these goals can be achieved within [its planned timeline] is highly questionable,” the senior researcher said. “Nevertheless, Saudi Arabia remains highly dependent on arms imports, and the developing indigenous Saudi arms industry can be expected to be based on imported technology and expertise for many years to come.”

Burak Ege Bekdil in Ankara, Turkey, and Joe Gould in Washington contributed to this report.

As part of the settlement, U.S.-based Leonardo DRS will establish an innovative engineering and support facility in IGG’s industrial park in Abu Dhabi to support projects and assist in hiring and training locals to fill new high-tech manufacturing positions, the company said in a statement.

“Leonardo has a long history in working to support the armed forces of the UAE, and this partnership within our subsidiary and IGG has us very excited,” Lorenzo Mariani, Leonardo chief commercial officer, told Defense News

The two parties are expected to collaborate on advanced communication systems integration in support of tactical C4I projects, as well as onboard vehicle power systems that provide combat vehicles with up to 120 kilowatts of mobile electrical power for complex C4ISR systems, mobile command posts, radars, weapon systems and other power-hungry expeditionary capabilities.

“The high technology of Leonardo DRS and the capabilities of IGG will lead to next-level products for the country’s armed forces now and well into the future,” Mariani added.

The agreement deepens an already strong relationship between Leonardo DRS and the government of the UAE. In 2017, Leonardo and IGG signed a strategic collaboration agreement to supply cybersecurity capabilities in the UAE, and to identify and implement advanced solutions including security operations centers. The agreement’s aim was to integrate the solutions and market knowledge offered by IGG with Leonardo’s state-of-the-art know-how in a long-term strategic and international partnership.

Bill Guyan, vice president and general manager of the Leonardo DRS land electronics unit, considers the Emirati-American military relationship a robust one full of new growth potential over the next few years.

“The recent growth of the Leonardo DRS land electronics business in the UAE has produced this natural next step. We are proud to lay down enduring roots and a strong business presence and remain committed to the success of our UAE customer and UAE Vision 2021,” he said, referring to the country’s effort to prioritize health care, economic competitiveness, sustainable infrastructure, education, a cohesive society and an improved judiciary.

“We are eager to work with IGG to provide the guidance, technology and support required to increase interoperability between the U.S. and Emirati forces, allowing them to strategically operate more closely,” he added.

The two parties signed an agreement on Dec. 3 during Egypt’s first Defense and Security Exhibition (EDEX 2018).

Hervé Guillou, CEO of the French shipbuilder, told Defense News his firm has “agreed on a five years contract for support and maintenance, and signed a memorandum with Admiral Ahmad Khaled, Commander in Chief of Egyptian Navy, to seal our five years cooperation plan based on supporting seven ships we have already contracted.”

The maintenance activity will further enhance the industrial cooperation program supporting the construction process of the three locally built Gowind corvettes. It will also be managed through a new Naval Group subsidiary, based in Alexandria, which will focus on developing and training a local work force.

According to Naval Group, the subsidiary — called Alexandria Naval for Maintenance and Industry (ANMI) — will enable the Egyptian Navy to obtain an increased level of performance during the whole ship’s lifecycle. It will also guarantee the optimal use of the vessels, as well as carrying out upcoming upgrades on the four Gowind corvettes, the two LHD, the FREMM and other potential vessels.

The new entity is also expected to generate direct and indirect jobs in the related industrial sectors in Egypt.

“We are establishing a company in Alexandria and investing in a new building while preparing for a joint venture that seals in fact our multi-decade relationship for the long term,” Guillou added. “Naval Group is going to hire Egyptian engineers, technicians and workers to really strengthen the capabilities, in order to better serve the navy and further enhance the relationship with Egypt.”

In July 2014, the Egyptian Ministry of Defense signed an agreement for the construction of four Gowind corvettes. The first vessel was built in Lorient, and delivered to Egypt on September 2017. The second of the series was built through technology transfer at the Alexandria Shipyard, and was launched in September 2018. Naval Group also delivered the FREMM multi-mission frigate “Tahya Misr” in August 2015. In June 2016, the shipbuilder delivered two Mistral-class Landing Helicopter Dock vessels to the Egyptian Navy.

Pressing the need to maintain Egypt’s navy, the CEO said his near-term priority is making sure “that the seven ships are sailing and with the highest level of availability. Today, four out of seven ships are operational, and considered unprecedented in terms of high technology.”

“The Egyptian navy seems really satisfied,” he added. “The operational and military capabilities of our corvettes and frigates are strictly high as they are equipped with a great combat system, extremely good anti-submarine capabilities, as well as having a homogeneous fleet which is largely in service with the French Navy, in addition to a single logistic and support system and communality in terms of the equipment.”

Eying the future, Guillou declared that the French shipbuilder’s next step is helping the Egyptian navy get a larger fleet.

“We are proposing offers to the Egyptian navy and leadership either for further Gowinds or to participate in the new French Frigate Program ‘Belhara,’ which consists of a future digital multi mission ship for the French navy,” he said.

The CEO also pushed the message that France represents a long-term strategic partner for Egypt, one who will be there reliably for the future.

“It’s not only buying goods and products, but building a long-term relationship,” he said. “France is the only European country today which is operating 365 days a year on all seas.”

To strengthen this progress, el-Sissi stressed in July the importance of continuing the development of companies and factories affiliated with the Ministry of Military Production, as well as enhancing the national industry, exporting surplus production and developing military products to cover the needs of the Armed Forces. He also underlined the need to boost cooperation between the ministry and major global companies to acquire modern technology and bolster local innovation.

Assuming the president’s plans are a success, Egypt could expand its defense-industrial base beyond domestic requirements, and toward global competition.

Military-technical cooperation between Egypt and other countries — mainly Russia, China and the United States (the two former of which have an interest in dislodging the latter’s influence in the Middle East) — has reached “an unprecedented level during the last two years,” according to Mohamed al-Kenany, a researcher at the Arab Forum for Iranian Policy Analysis.

“This period has witnessed a number of frequent visits and meetings between the minister of military production, Mohamed el Assar, and a number of defense ministers, ambassadors and heads of international defense companies,” he said.

And those strong relationships have translated into global cooperation, explained Ahmed Kamel al-Beheiri, an expert in regional security issues at the Al-Ahram Center for Political and Strategic Studies.

“This [is reflected] by the transfer of experience with the Russians in the air defense systems field, Germany in the maritime manufacturing and light weapons domain, and China through unmanned aerial vehicles and its complementary technology,” he said.

In terms of potential domestic production, al-Beheiri noted that Egypt is currently working a strategy to increase capabilities “through a joint cooperation with international companies for the transfer and localization of both hard and soft technologies within the military forces arsenal – especially one that concerns the air defense missile field.”

“In addition, manufacturing light and medium weapons is considered a vital realm to the Egyptians nowadays,” he added.

In terms of exporting some potential weapons, al-Beheiri sees potential in the near future, especially as “Egypt has already begun exporting some types of weapons to both African and Arab countries, such as Iraq.”

It’s not just the big nations with which Egypt is looking to partner. Al-Kenany noted that South Africa’s Paramount Group has been in talks with the Egyptian government for several months, with an eye on expanding “Egypt’s military manufacturing capabilities and strengthen its status as an arms export source for several African countries.”

That could include establishing a modern defense complex to produce various military equipment, including armored vehicles.

But China and Russia loom large, particularly as the politics of the last several years have driven a wedge between Cairo and Washington.

According to one industrial source who spoke to Defense News on condition of anonymity, American industry is losing its grip on weapon sales to Egypt.

“Washington recognizes that Egypt is a strategically important partner and a large [customer in the] U.S arms market. So we can suppose that there is a clear American fear of the Egyptian side falling into the arms of the Russians or Chinese,” the source said. “Moscow has been able to consolidate its position as a major force in Syria and succeeded in attracting Turkey to its side; therefore, Washington will not allow Cairo to withdraw towards Moscow or repeat the Turkish experience by stepping out of the American abyss.”

But al-Kenany is convinced that the U.S.-Egypt industrial relationship is “healthy.”

“As a matter of fact, there are 36 U.S. defense companies participating at EDEX 2018 [the Egypt Defence Expo] next month. If there was any kind of [negative] impact [on their relationship], we would have not witnessed this huge American representation,” he concluded.

The six Gulf Arab nations are Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Oman and Bahrain.

According to the alliance’s objectives — which are expected to be formally announced during the Oct. 12-13 U.S.-Gulf summit in Washington — the new establishment will serve as a “bulwark against Iranian aggression, terrorism, extremism and will bring stability to the Middle East,” a spokesperson for the White House’s National Security Council said.

The idea of establishing a broad Arab alliance dates back to the beginning of the Arab Spring demonstrations in 2011. Such an alliance was again considered in 2015, but the previous U.S. administration under President Barack Obama was preoccupied with its adoption of a gradual withdrawal strategy from the region.

President Donald Trump, however, has shown more interest in the region through his tough rhetoric on Iran, accusing it of being the “head of international terrorism” and calling it a threat to U.S national security, the Gulf Cooperation Council and longtime U.S. ally Israel.

The idea of a security pact was re-emphasized ahead of Trump’s visit last year to Saudi Arabia, where he announced a massive arms deal. But according to a U.S. source who spoke to Reuters on condition of anonymity, the alliance proposal “did not get off the ground.”

Some analysts believe MESA will remain an idea whose time may never come.

“The idea of an Arab NATO is wholly unconvincing. It will simply not happen,” said Yezid Sayegh, a senior fellow at the Carnegie Middle East Center think tank.

“It is less than four years since a grand anti-terror Islamic coalition was announced by Saudi Arabia and backed by the same countries, but nothing came of it despite some quiet, practical cooperation,” he added. “The GCC has failed time and again to agree a joint defense capability, and Saudi Arabia and the UAE have not even been able to wage a properly coordinated war in Yemen, so there is no evidence to suggest they can now organize something as ambitious as an Arab NATO.”

But for retired Kuwaiti Air Force Col. Zafer Alajmi, the military alliance could bring Gulf countries closer than ever.

“Military structures worldwide proved it can cross all political boundaries. Just as the U.K. abandoned its economic and political attachment from Europe, it remained part of the NATO. Furthermore, last spring’s maneuvers held in Saudi Arabia were attended by Qatari officers. All that proves that a true and stiff military cooperation is the key to a successful Arab NATO alliance,” he said.

Obstacles and goals

When asked if MESA is meant to restrain Iran from expanding its influence in the region, Sayegh said: “The alliance already exists between certain Arab countries and the U.S. to contain Iran, at least de facto.”

“It is not a true alliance, in the sense that each member does what it wants: Iran is now under pressure thanks to U.S. sanctions, not to anything Saudi Arabia has done; and Saudi Arabia receives U.S. support in Yemen, but the U.S. does not have strategic goals there; and the alliance never really existed in relation to Syria, where they have all failed,” he asserted.

“Is this really only about Iran?” Sayegh continued. “At one level, the idea is about keeping Iran out of the rest of the Gulf or MENA region. But at another, it may serve as a means of ostracizing countries like Qatar, which the Saudis cannot kick out of the GCC or Arab League.”

One industrial source believes it’s unlikely there will be an efficient Arab NATO because of the ongoing Qatar diplomatic crisis. “The continuation of the political dispute constitutes the main obstacle to achieving the planned goal because it will prevent a proper communication and coordination with Washington to actualize the American vision of a broad coalition,” he said.

In June 2017, several countries cut off diplomatic relations with Qatar after accusing the country of supporting terrorism. These countries — Saudi Arabia, the UAE, Bahrain and Egypt — imposed land, sea and air blockades on Qatar.

Qatar “does not look ready at this stage to accept any alliances to counter Iran’s influence and address the threats of Tehran’s allied forces,” the industrial source said.

“It is true that all Arab countries are allies, but they are regional competitors,” he said. “They all want to be recognized as the main player in the region and its center of gravity.

“All that and we still didn’t begin to address the enormous challenge of integrating militaries with ‎widely divergent capabilities and in some cases non-interoperable weaponry.”‎

America’s vision of the alliance would likely include Oman, but one military source from a GCC member state told Defense News it is “unlikely that Oman will accept giving up on its policy of neutrality towards Iran, especially that it has already refused to participate in the Arab alliance to support legitimacy in Yemen.”

He added that while Saudi Arabia and the UAE view Tehran as an enemy, Kuwait and Oman have historically enjoyed peace and periods of close cooperation with Iran.

“Therefore, the chances of building an Arab alliance that includes the GCC states, Egypt and Jordan seem minimal, mostly because the Gulf countries are still inconsistent towards determining the priorities of their enemies and agreeing on the nature of the threats and its sources,” he said.

Sayegh noted the importance of bilateral relationships for the Trump administration. “What we can conclude is that an Arab NATO is unlikely to acquire meaningful operational substance, and will not replace the bilateral ties that each of these Arab countries has with the U.S., including Qatar,” he said.

AMMAN, Jordan ― Exceptionally notable at last week’s Special Operations Forces Exhibition in Jordan was the large presence of local and international light tactical products to support special ops fighting the wave of regional threats.

“The new type of threats faced today requires the use of light vehicles able to meet the demand of the countries confronting terrorism in an asymmetric environment where the assemblage of terrorist groups is becoming more concentrated in residential areas,” said Abdallah Al Salman, marketing and communication manager with the Jordan-based KADDB Investment Group.

Forecast International analysts predict the global light, wheeled vehicle market will produce more than 36,000 units worth at least $30.9 billion through 2024 ― despite ongoing worldwide economic difficulties.

“In order to counter this new type of threats, you certainly need smaller and lighter, high-maneuverable vehicles. And as an example, KIG has worked on developing Al-Maha and Al-Washaq as a solution to customers that require smaller vehicles to maneuver in narrow neighborhoods and streets,” he added.

Both Al-Maha and Al-Washq were developed after KIG received feedback from its local and international customers, according to Al Salman, who noted that the Al-Jawad vehicle is sometimes considered too large to effectively counter the “new type of threats.”

“The two vehicles are able to carry eight personnel in total (six plus two) in comparison with Al-Jawad, which can carry a total of 10 personnel. But what’s common is the high level of protection,” he said.

A fourth-generation vehicle, the Al-Jawad serves as an internal security vehicle and provides a high level of protection standards at the CEN B6 level of protection. It follows the success of its three previous generations.

On display for the first time during SOFIX was KIG’s new Al-Mared eight-wheel drive armored vehicle and its Al-Faris six-wheel drive armored vehicle. Both come with the Stanag L3 level of protection, upgradable to Stanag L4.

For its part, Oshkosh Defense showcased its Special Purpose All-Terrain Vehicle technology demonstrator at the show, after having it tested in an unnamed Middle Eastern country in 2014.

The S-ATV is lightweight and agile, and is advertised as being able to meet a range of mission requirements for armed forces in the U.S. and the Middle East, among other areas around the globe.

“There’s always a trade-off in weight classes, and as you get lighter, you generally accept far less protection,” explained Mike Ivy, senior vice president of international programs and global product support at Oshkosh Defense.

“The vehicle that the customers want is driven by the operational environment at a given time. In some cases, they need more speed, greater range and less protection; and in other cases, they need greater protection, less speed and transportability,” he added. “We feel like we are uniquely positioned to offer vehicles across that spectrum of missions.”

For Anthony Winns, the head of Lockheed Martin’s Middle East and Africa regional business, pointed at cost and size as a main focus for customers.

“A lot of the focus is on cost and miniaturization. And when you’re able to reduce cost, that means you are able to buy more weapons,” he said. “The economies are dictating that you want to be able to spend your money more effectively, and governments want to do that. The lighter weapons ― the less costly and the more effective ones.”

A report published by the global consulting firm MarketsandMarkets says the armored vehicles market is expected to reach more than $31 billion by 2021, growing at a compound annual growth rate of 5.6 percent as conflict spreads and acts of violence become more common.

Hence, “the ability to maintain and repair sophisticated, land-based military equipment locally has become a necessity ― not to mention the manufacturing process,” explained military expert Naji Malaeb, who is the editor in chief of sdarabia.com, which is a partner of Defense News.

He specifically mentioned “Saudi Arabia and UAE’s heavy participation in the Yemeni war; Egypt’s large-scale engagement against Islamic militants in the restive northern Sinai; and Jordan’s continuous effort to secure its borders amid fears of Islamic State fighters slipping from Iraq and Syria.”

So where does the Middle East stand today in terms of both critical objectives?

Technology transfer: Make it or break it

“If Western providers of military equipment ― mainly the U.S and Europeans ― want to work with local Arab companies, they will have to transfer their technical knowledge to the ones that are part of a rising indigenous defense sector,” an industry official told Defense News, speaking on condition of anonymity.

The official stressed the Gulf’s capability to “turn its back on the U.S. and European suppliers,” noting that “if they [the U.S. and Europe suppliers] don’t help them [Gulf states] with what they need, there will be no other choice but to try to get it somewhere else to protect their security needs.” That alternative could be Russia.

For his part, Abdallah Al Salman, marketing and communication manager at Jordan-based KADDB Investment Group, stressed the country’s pioneer spirit in technology transfer “given the highly qualified human resources in Jordan and the different partnerships over the years with global industry leaders.”

“There is no doubt that some Arab countries are becoming more aware of the importance of technology transfer and are capitalizing on building their local capabilities through manufacturing certain parts locally as part of their purchasing contracts, which is a globally growing trend nowadays,” he said.

However, some analysts are skeptical when it comes to this specific matter; Anshu Vats, a partner and the head of the public sector unit for the Middle East at consulting firm Oliver Wyman, and Mark Serrano, a principal in the same unit expressed a differing view in their report “Military Self-Reliance in the GCC: From Purchasing Power to Industry Powerhouse.” Referring to the Gulf Cooperation Council, the co-authors said “the GCC has lacked the capability to absorb the technology, due to the shortage of nationals in the defense industry and the limited pipeline of [science, technology, engineering and mathematics] graduates.”

“The parts of the value chain that GCC countries currently operate in are labor intensive, and so when there is a transfer of technology, they end up employing expatriate labor to implement the foreign technology,” they explained. “This, therefore, does not serve the objective of localizing the defense industry.”

Going global: International export goals

In the United Arab Emirates, Nimr Automotive was able to hit the international market running and now plans to increase exports of its military-grade vehicles to international markets over the next five years.

The Emirates Defence Industries Company subsidiary delivered its first batch of vehicles outside the Middle East and North Africa region last year to Turkmenistan, with further exports to hit Thailand and Malaysia in 2018. Nimr also added Europe to the list after signing a strategic partnership agreement with the Czech Republic’s VOP CZ at the 2017 International Defence Exhibition and Conference.

And yet Fahad Mohamed Al Absi, commercial director at Nimr, believes “the stage reached by Arab and Gulf countries in the field of military industrialization is well overdue.”

“The military industry in the UAE ― or even in the rest of the Arab countries ― has the capacity and potential for industrialization, but the thing that can truly help improve those opportunities is that the local market supplier shouldn’t be an agent resource,” he said.

“This same resource must be a manufacturer, able to produce and supply the raw materials according to the needs of our market and others in the Middle East. What can limit the possibilities of our progress is our continuous, [heavy reliance] on imports.”

Fahad admits that some Arab manufacturers are indeed making their own products from raw materials and “the sophistication is gradually developing, but still weak.”

The latest numbers on arms imports by Middle Eastern countries show an ‎increase by 103 percent between 2008 and 2012 as well as 2013 and 2017, and it accounted for 32 percent ‎of global arms imports from 2013-2017, ‎according to the Stockholm International Peace Research Institute.

‎“Widespread violent conflict in the Middle East and concerns about human rights have ‎led to political debate in Western Europe and North America about restricting arms ‎sales,“ said Pieter Wezeman, senior researcher with the SIPRI Arms and Military ‎Expenditure Programme. “Yet the USA and European states remain the main arms ‎exporters to the region and supplied over 98 percent of weapons imported by Saudi ‎Arabia.”

Jordan, on the other hand, was able to export some of its local military products to 35 countries in the world ― Arab and non-Arab ― including organizations such as the United Nations that are currently using the Toyota Land Cruiser manufactured in Jordan, according to Al Salman.

“In the last few years, we have proudly managed to develop new products that best suit our targeted markets, such as Al-Washaq, the fourth-generation of Al-Jawad, and Al-Wahsh.”

Al-Jawad’s fourth-generation version comes as continuity to the success of previous generations. It serves as an internal security vehicle and provides high levels of protection standards with CEN level B6 protection. Al-Wahsh, on the other hand, is an armored vehicle designed and developed for modern warfare as well as internal security mission requirements, and to operate in a number of terrains.

For his part, one Saudi industrial official told Defense News on condition of anonymity: “Today’s era is an open one in the face of military industries, but the challenge remains in achieving the ability to work on high-tech knowledge especially in the domain of air defense systems and long-range missiles.

“But for the rest of the military equipment, especially the armored vehicles, Saudi Arabia is considered a front-runner, as it is now working on producing a 100 percent indigenous, brand-new vehicle with a B7 level of protection, which is expected to replace the Hummer vehicles in service today.

“We have attained a high level of production industry that can be comparable with the rest of the world,” the source added, referring to Vision 2030, Saudi Arabia’s effort to increasingly meet its defense requirements from domestic industry.

“For example, Al Tawiq armored vehicle was able to pass rough tests in comparison with other four international ones and was equated with the rest of the vehicles. As for the Al Tawiq’s structure, it was sent to a company in Belgium that gave the armored vehicle the highest rank [95 out of 100].”

To read more news on Middle East defense in Arabic, visit SDArabia.com.

According to a Boeing statement, the joint venture is expected to post revenues in excess of $22 billion by 2030 and create 6,000 jobs and training opportunities for Saudi youth. A total of $450 million will be invested in facilities and equipment in Saudi Arabia.

The joint venture will also support the ambitious Vision 2030 plan, while strengthening the Kingdom’s defense capabilities and enhancing its deterrent potential.

Spokesman Dennis Scott Day, a spokesman at Boeing Defense Space and Security, described the MoA as “the first step to expand the aerospace ecosystem in the Kingdom under Vision 2030 to include not only sustainment, but also manufacturing, training, engineering, and R&D.”

In addition, the agreement will transfer technology to install weaponry on the aircraft as well as localize the supply chain for spare parts in the Kingdom.

“The SAMI-Boeing JV provides a unique opportunity to accelerate localization through Boeing’s strong local presence and relationships, SAMI’s leadership role in Vision 2030 aerospace localization, Boeing’s existing KSA joint ventures, the large KSA installed base of military systems and Boeing’s unparalleled services capabilities,” Day added.

Leanne Caret, President and CEO, Boeing Defense, Space and Security added in a statement that “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.”

SAMI is a relatively new government-owned military industries firm focusing on air and land systems, weaponry, missiles, and defense electronics. The goal is expansion of Saudi Arabia’s gross domestic product and domestic job opportunities in engineering and technology, by localizing more than 50 percent of the Kingdom’s military spending by 2030.

The creation of SAMI was announced in May 2017. The 100 percent government-owned entity aims to become one of the world’s top 25 defense companies by 2030.

Chairman of SAMI, H.E. Ahmed Al-Khateeb, commented on this milestone saying “Boeing has a long-standing commitment to Saudi Arabia, and is extremely keen on expanding its footprint in the country. SAMI is exploring all collaborative opportunities to build a strong autonomous military industries ecosystem in the Kingdom.”

“In addition to local sustainment capabilities, the inevitable partnership between the two companies could explore the creation of intellectual property as well,” said SAMI CEO Andreas Schwer.

Although the timeframe to begin work on Saudi military platforms has not yet been determined, the Boeing official stressed that the “formation of the joint venture will be subject to the parties reaching definitive agreement with the other shareholders of Boeing’s existing KSA joint ventures on an initial buy-in transaction, and then customary closing conditions, including receipt of required regulatory clearances.”

Once the MoA is operational, the joint venture will provide a foundation for future platform sales and for expanding Boeing’s presence in the Kingdom to support market growth for both commercial and defense programs.

It is worth noting that Boeing’s partnership with Saudi Arabia dates back more than 70 years. It began on February 14, 1945, when U.S. President Franklin Roosevelt presented a twin-engine Dakota DC-3 airplane (manufactured by Boeing’s heritage company Douglas Aircraft) to King Abdulaziz Al Saud.

Another milestone dates back to 2015 when Alsalam Aircraft Company, Boeing and Saudi Aerospace Engineering Industries (SAEI) signed an agreement to create the Saudi Rotorcraft Support Company. The joint venture will provide rotorcraft maintenance, repair and overhaul to support the Saudi rotorcraft fleet.

The Saudi Rotorcraft Support Company CEO, Neil Bevan, told Defense News last November that the Apache is expected to be the first platform to get work, noting that the “repairs will involve a full strip down of the aircraft and a structural assessment of every component.”

“Our main focus will be the after sales support of those airframes doing both aircraft MRO in our facilities in Riyadh and component MRO in our facilities in Jeddah,” he added.

“We are very excited about the very first steal cutting due later this July. We are currently working on the corvettes design phase and are then planning to enter the OPV’s design phase, [of] which first steel-cutting is due next year,” Davide Traverso said March 14.

In August, Qatar confirmed its order for seven vessels from Italian shipyard Fincantieri, following the signing of a preliminary contract in June 2016. The deal consists of four corvettes, each more than 100 meters in length, two offshore patrol vessels and one landing platform dock.

Following the design phases for the corvettes and the OPVs, the company will focus the LPDs, Traverso said.

“This is the biggest turnkey program we have ever had in terms of export market in the Arab region,” he said. “It is worth $3.8 billion, so our effort is not only focused on the design and construction phases, but also on training activities, integrated logistics support and in-service support up to 10 years.”

The full program ― including MBDA’s coastal defense systems and land-based missile stations ― will cost more than $5 billion.

Although the units are being constructed in Genoa, Italy, the shipyard “will definitely help grow the Qatari naval business by bringing up ship-maintenance infrastructure to the Gulf country,” Traverso noted.

“The program will be a big boost for our shipyards in the naval business area, but I would say the same for Qatar, as we will be staying there for approximately 10 years in order to maintain the naval units,” he added.

For its part part, the Navy is drafting operational requirements and has gotten a team of 10 people, including eight officers, involved.

“There is a very close cooperation between us on the concept and design phases,” Traverso said. “We have a very strong relationship with the Qatari Navy because we feel there is a big design phase for the full fleet, which is putting us in the position to be here in the region for 15 years.”

For the first time ever, Fincantieri showcased the multirole air defense corvettes for the Navy at the Doha International Maritime Defence Exhibition and Conference held last week in Qatar.

Although the current status of the design is expected to change on a regular basis because of the continuous rearrangement of the electronic equipment and weapon systems, the existing configuration revealed at DIMDEX “won’t change a lot,” Traverso said.

In terms of weapons, the corvettes will be fitted with a 76mm main gun by Leonardo, in addition to Aster 30 surface-to-air missiles and Exocet anti-ship missiles by MBDA. Leonardo is also responsible for the integrated supply of the new naval units’ combat system Athena and main radar system Kronos.

The OPVs will be equipped with MBDA’s ground-based air defense system deploying the MICA fire-and-forget missile and Exocet missiles, as well as Leonardo’s Kronos radar.

The LPD, it will be fitted with MBDA’s Aster 30 missiles and the L-band active electronically scanned array radar.

“This is a very well-equipped fleet,” Traverso said. “Leonardo’s combat system suite, for example, is designed to be very much interoperable on all units of the fleet.”

The corvette design selected by the Navy has a length of 107 meters and a draft of 4.2 meters for a full-load displacement of 3,250 tons. Its maximum speed is set to be 28 knots, and its range 3,500 nautical miles (at 15 knots).

The crew is 112-strong, and the flight deck and hangar are sized for one NH90 helicopter.

To read more defense news from the Middle East in Arabic, visit http://sdarabia.com/.