Thursday, July, 25, 2024 09:04:15
  • The collaboration would be the first advanced-manufacturing partnership between Saudi Arabia & UAE. 
  • The deal comes as the two nations push to set up a home-grown defense industry to diversify their respective economies.

Mubadala Investment Company (Mubadala), a renowned UAE-based global investment company, has reportedly signed a new defense manufacturing agreement with Saudi Arabia’s state-owned defense firm, Saudi Arabian Military Industries (SAMI).

Reports cite, the deal marks a first of its kind strategic tie-up between the United Arab Emirates and the kingdom of Saudi Arabia. The two nations would be collaborating on manufacturing, defense, overhaul, maintenance as well as research, repair and design & engineering.

According to a report by Arabian Business, the collaboration would be seeing Mubadala, whose aerospace and defense portfolio includes Turbine Services & Solutions (TS&S), Strata Manufacturing and Emirates Defense Industries Company (EDIC), help the kingdom’s defense firm in accelerating its development plans & further expand the GCC’s aerospace & defense manufacturing sector.

The Director of Aerospace & Defense, Mubadala, Badr Al Olama stated that the company has identified several areas where the two organizations can potentially partner in the R&D, manufacturing and MRO sector that could utilize UAE’s deep experience in setting up a regional ecosystem and in growing international partnerships. Al Olama further stated, the collaboration would enable Mubadala to optimize its investments, local talents, resources & competitiveness for its partners & clients by boosting market access, industrial excellence & integration globally.

The new agreement reportedly comes as the UAE & Saudi Arabia, in an effort to diversify their respective economies, push to develop a defense sector that is home-grown to create job opportunities & transfer western defense companies’ technical know-how as part of their arms deal package.

The Chief Executive of SAMI, Andreas Schwer stated the partnership would enable the firm to further support the growth of both the kingdom’s aerospace & defense sectors through knowledge & technology transfer.

According to reports, the financial details related to the agreement were not unveiled by the two companies.