Riyadh – Mubasher: The Saudi Arabian Military Industries (SAMI) and France-based Naval Group on Sunday signed a memorandum of understanding (MoU) to manufacture ships, frigates, and submarines in the kingdom.
The deal, which was inked on the sidelines of the International Defence Exhibition and Conference (IDEX), entails that the two parties would collaborate to produce and develop naval systems, according to Reuters.
SAMI, which was launched in 2017 and is owned by Saudi Arabia's state-owned Public Investment Fund (PIF), will own a 51% stake of this joint venture (JV), the news agency added.
“Through design, construction, and maintenance activities the JV will contribute significantly to further enhancing the capabilities and readiness of Royal Saudi Naval Forces,” SAMI’s CEO Andreas Schwer said.
This JV is considered a part of the Saudi Vision 2030 that aims to nationalise around 50% of military expenses and raise the private sector’s contribution in the kingdom's gross domestic product (GDP) to 65% from 40%.
