Saudi Arabian Military Industries (SAMI) has entered an agreement with South African company Paramount Group for cooperation in defence.
SAMI noted that the agreement is consistent with Saudi Arabia’s vision for the creation of an integrated defence industrial ecosystem.
The collaboration will cover the development of technologies and capabilities across the land, sea and air domains, as well as system integration.
It will support the country’s Vision 2030 economic development plan that aims to manufacture half of the kingdom’s military equipment needs locally by 2030.
SAMI CEO Dr Andreas Schwer said: “The collaboration between SAMI and Paramount Group will play a large part in helping to achieve the objectives of Saudi Vision 2030.
“This will contribute significantly to further enhancing the capability of Saudi Armed Forces and increasing local content, in addition to creating new job opportunities and training for Saudi youth to increase their contribution and raise their role in this vital industry and the national economy in general.
“We believe there are many synergies between our companies that can be leveraged to build the defence industrial capability that Saudi requires.”
Paramount Group chairman Ivor Ichikowitz stated that Saudi Arabia is a key market for its technologies and that the company will support the kingdom’s ambition to create a domestic manufacturing capacity.
Ichikowitz added that the company’s technology for asymmetrical conflict and its expertise will be able to address security realities in the Middle East.
Paramount will leverage its portable manufacturing model to support the declared intent of Saudi Arabia.
Last month, SAMI signed a memorandum of agreement with three affiliates of Hanwha Group to explore the formation of a joint venture in Saudi Arabia.
Provisionally named SAMI-Hanwha Munitions Systems, the proposed JV will manufacture and sell munitions within Saudi Arabia.