SAMI and Airbus Unite for Innovative Military Aviation Maintenance and Services Venture
Saudi Arabian Military Industries (SAMI), a fully-owned arm of the Public Investment Fund (PIF) and the National Champion of Military Industries Localization, alongside Airbus, have formalized an agreement to establish a joint venture focusing on military aviation services and maintenance, repair, and overhaul (MRO) capabilities.
The revelation was made during the Saudi-French Investment Forum, coinciding with the visit of French President Emmanuel Macron to Saudi Arabia. The deal was signed by Eng. Walid Abukhaled, CEO of SAMI, and Bruno Even, Member of the Airbus Group Executive Committee.
Commenting on this significant development, H.E. Mr. Ahmed bin Aqeel Al-Khateeb, Chairman of SAMI, stated: “The signing of today’s joint venture agreement with Airbus signifies another crucial milestone in our quest to position SAMI as a local and regional front-runner in the defense sector. This strategic alliance aligns with our vision for SAMI to rank among the top 25 defense firms globally and supports the Saudi Vision 2030 aim of localizing over 50 percent of the Kingdom’s military expenditures by the year 2030. Additionally, this initiative forms part of our long-term strategy to collaborate with leading global aerospace enterprises. We anticipate working collaboratively to bolster local capabilities and cultivate a resilient and sustainable aviation MRO ecosystem.”
SAMI CEO Eng. Walid Abukhaled expressed: “We are thrilled to join forces with Airbus for the establishment of this joint venture. The new Saudi entity will leverage Airbus’ vast experience and cutting-edge capabilities to facilitate swift advancements in the military aviation services sector within Saudi Arabia. In addition to expediting technology and expertise transfer to the Kingdom, this agreement will further fortify the local supply chain and ensure the self-sufficiency of the national defense industry.”
Centered in Riyadh, with a presence at the Prince Sultan Air Base in Al-Kharj, the joint venture is projected to commence operations in the first quarter of 2022, contingent on obtaining necessary regulatory and competition approvals. SAMI will retain a 51-percent stake, while Airbus will possess the remaining shares in the new entity, which will concentrate on developing a resilient and vibrant aviation services sector, thriving on indigenous abilities and talent, along with reinforcing the local supply chain within the industry.
The new entity will contribute significantly to the advancement of the domestic military industries sector, generating new high-quality jobs for Saudis, enhancing the Kingdom’s defense self-sufficiency, and fostering growth in the national economy, aligning with the Vision 2030 objectives.
The solutions and services from the joint venture will initially serve the complete MRO spectrum of the Airbus military fixed-wing fleet, encompassing A330MRTT and C295, with potential for future expansion to additional platforms. It seeks to enhance operational readiness, improve logistics and supply chain support, amplify indigenous design and upgrade capabilities, and reduce dependency on foreign engineering support within the ecosystem of Saudi Arabia’s military industries.
