Saudi Arabian Military Industries (SAMI) has signed a joint venture agreement with Spain's Navantia for the design and construction of five Avante 2200 corvettes.

 

The programme will start this autumn and the last unit will be delivered by 2022, said a Saudi Press Agency report.

 

In line with the contract, Navantia and SAMI have agreed on the establishment of the JV in Saudi Arabia, which will provide an exceptional opportunity to consolidate the position of the integrated systems and technologically advanced solutions provided by Navantia in the Saudi market and area of influence, perfectly aligned with Saudi Arabia’s Vision 2030 by localising 50% of the total military spending by 2030.

 

The contract will generate 6,000 direct and indirect jobs for five years, as follows: 1,100 direct jobs, more than 1,800 from the auxiliary industry, and more than 3,000 indirect jobs generated by other suppliers.

 

In this respect, the JV will focus on programme management and combat system integration and installation, system engineering, system architecture, hardware design, software ýdevelopment, testing and verification, prototyping, simulation, modelling, and through-life support.

 

Ahmed Al-Khateeb, chairman of SAMI, said: “SAMI remains committed to being a key enabler of the Saudi Vision 2030, and the establishment of this joint venture with Navantia will localise more than 60% of ships' combat systems works including, installation, and integration, which contribute to the kingdom's objective to be at the forefront of shaping the local military industries' ecosystem. 

 

"We will continue to explore collaborations and leverage partnerships that meet our key mandate to localise more than half of the kingdom’s total military spending,” he said.

 

Esteban García Vilasánchez, Chairman of Navantia, said: “Navantia is very happy with the signing of this contract that means a starting point for the collaboration with Saudi Arabia. Navantia is committed to contributing to Saudi Vision 2030 and will support the country in this endeavour. 

 

The joint venture is an opportunity to develop capabilities in the country and jointly explore future opportunities, he said.

 

For the Avante 2200 contract, the JV will be responsible, among others, of supplying the combat system for all the five ships. Corvettes 4th and 5th will be finalised and delivered in Saudi Arabia, where the JV will do the installation, integration and test of the complete combat system. 

 

Launched in May 2017, SAMI is a state-owned military industries company working under the directives outlined in the Saudi Vision 2030. 

 

Aiming to be among the top 25 military industries companies in the world by 2030, SAMI is expected to play a key role in localising 50% of the kingdom’s total government military spending.

 

SAMI is combining the latest technologies and the best national talent to develop military products and services at par with international standards across four business divisions - Aeronautics, Land Systems, Weapons and Missiles, and Defense Electronics. The company is also focused on increasing exports and bringing foreign investment to the kingdom’s military industries sector.

 

With Saudi Arabia among the world’s top five spenders on security and defence, SAMI’s targets set forth for 2030 include contributing around SR14 billion ($3.7 billion) to the kingdom’s GDP, investing over SR6 billion ($1.6 billion) in research and development, and creating over 40,000 direct jobs locally.