Saudi Arabian Military Industries (SAMI) on Wednesday signed three memorandums of understanding (MoUs) with Turkish defense companies in a bid to develop and produce defense technologies within Saudi Arabia.
The agreements were signed in İstanbul 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), according to an announcement by SAMI. The signing represents a strategic move in Saudi Arabia’s effort to enhance its defense capabilities through foreign partnerships.
SAMI, a state-owned entity under the Saudi Public Investment Fund’s (PIF) Vision 2030 plan, signed deals with Turkey’s Baykar Technology, Fergani Uzay and ASELSAN. These MoUs aim to transfer technology and establish manufacturing capabilities within Saudi Arabia to produce defense technologies domestically.
Under the agreement with Baykar Technology, SAMI will establish manufacturing capabilities for Baykar’s unmanned aerial vehicles (UAVs) in the kingdom. The partnership includes joint development and technology transfer to Saudi Arabia.
The deal with Fergani Uzay involves setting up a Center of Excellence for developing emerging technologies in the space sector.
The agreement with ASELSAN focuses on transferring and producing advanced defense electronics technologies within Saudi Arabia, aiming to enhance the kingdom’s 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.
Abukhaled also noted that the agreements are expected to increase gross domestic product through international cooperation and local supply chains.
The deals come on the heels of a historic agreement last year in which Saudi Arabia purchased drones from Baykar, 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 at the kingdom’s İstanbul consulate. Diplomatic efforts have been made to repair ties, with Turkish President Recep Tayyip Erdoğan visiting Saudi Arabia in April 2022, followed by Saudi Crown Prince Mohammed bin Salman visiting Turkey in June 2022.
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.