Saudi Arabian Military Industries (SAMI, Stand 12-D22) and France’s Naval Group (Stand 07- B15) have signed a preliminary agreement to create a joint venture in the Kingdom focused on the naval sector.
Signed on 17 February, the memorandum of agreement covers design, construction and maintenance activities for the Royal Saudi Naval Forces (RSNF).
SAMI will take a majority 51 per cent share in the proposed joint venture, for which a definitive agreement is expected before the end of 2019.
“We are looking at the next steps in our relationship with Saudi Arabia,” Hervé Guillou, Naval Group’s chairman and CEO, told the IDEX Show Daily. “We have already been there for 25 years, and the initial priority for this initiative is the maintenance and support of the ships we have delivered under the ‘Sawari I’ and ‘Sawari II’ programmes.”
Saudi Arabia set up SAMI in 2017 to develop manufacturing capabilities with the aim of producing half of the country’s required military equipment domestically by 2030.