Saudi Arabia signs deals with
Turkish defense firms
Saudi Arabian Military Industries
(SAMI) signed three memorandums of understanding (MoUs) with Turkish defense
companies on Wednesday, aiming to develop and produce defense technologies
within Saudi Arabia. The agreements were signed in Istanbul in the presence of
Saudi Defense Minister Prince Khalid bin Salman bin Abdulaziz Al Saud and Haluk
Görgün, secretary of Turkey’s Presidency of the Defense Industry (SSB), as
announced by SAMI.
This strategic move aligns with
Saudi Arabia’s Vision 2030 plan, enhancing its defense capabilities through
international partnerships. SAMI, a state-owned entity under the Saudi Public
Investment Fund (PIF), signed deals with Turkey’s Baykar Technology, Fergani
Uzay, and ASELSAN. These MoUs focus on technology transfer and establishing
manufacturing capabilities within Saudi Arabia.
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Arabia aiming to be a major player in global defense production
The agreement with Baykar Technology
includes setting up manufacturing facilities in Saudi Arabia for Baykar’s
unmanned aerial vehicles (UAVs), featuring joint development and technology
transfer. The deal with Fergani Uzay aims to establish a Center of Excellence
for emerging space technologies. The agreement with ASELSAN focuses on
transferring and producing advanced defense electronics technologies within
Saudi Arabia, enhancing local capabilities in this field.
“These agreements will enhance our
capabilities and contribute to the continued development of the national
defense industry. This, in turn, will help us achieve the company’s strategic
objectives, including the localization of 50 percent of defense spending, which
is one of the key objectives of Saudi Vision 2030,” said SAMI CEO Walid A.
Abukhaled. He also noted that the agreements are expected to boost the gross
domestic product through international cooperation and local supply chains.
These deals follow a historic
agreement last year in which Saudi Arabia purchased drones from Baykar, marking
the largest defense contract in Turkish history. Trade between Turkey and Saudi
Arabia has fluctuated due to political tensions, including the 2018 murder of
Saudi journalist Jamal Khashoggi. Diplomatic efforts to repair ties included
visits by Turkish President Recep Tayyip Erdoğan to Saudi Arabia in April 2022
and by Saudi Crown Prince Mohammed bin Salman to Turkey in June 2022.
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localization advances in line with Saudi Vision 2030 goals
In 2023, Turkish exports to Saudi
Arabia increased by 150 percent, reaching $2.62 billion. Officials from both
countries aim to boost cooperation in various sectors, including defense,
tourism, and construction, targeting mutual trade of $10 billion in the medium
term and $30 billion in the long term.
Saudi Arabia’s Vision 2030, an
ambitious economic and social reform program, underpins these initiatives as
the kingdom prepares for a post-oil future and significant global events such
as the World Expo Fair in 2030 and the FIFA World Cup in 2034. However, the
actual success and impact of these reforms remain subjects of debate.
Source: Turkish Minute
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