Saudi Military Industries signs warships JV, corvettes with Spain’s Navantia

SAMI has signed a JV Agreement for the design and construction of five Avante 2200 corvettes, above, with the Spanish state-owned shipbuilding company Navantia. (Courtesy Navantia)
Updated 19 July 2018

Saudi Military Industries signs warships JV, corvettes with Spain’s Navantia

  • The program will start this autumn with the last unit to be delivered by 2022
  • The contract will generate 6,000 direct and indirect jobs for five years

RIYADH: State-owned Saudi Arabian Military Industries (SAMI) signed an agreement with Spain’s Navantia to set up a joint venture in the Kingdom to build five warships, the state news agency SPA reported on Thursday.
The deal is part of a wider framework agreed in April by Spain and Saudi Arabia for Spanish state-owned shipbuilder Navantia to supply warships to the Gulf Arab state under a deal estimated to be worth around 1.8 billion euros ($2.2 billion).

SPA said the agreement between SAMI and Navantia was for the design and construction of five Avante 2200 Corvettes under a program that would start this autumn, with the last unit due to be delivered by 2022. It gave no value for the deal.
In line with the contract, SAMI said the joint venture would “localize more than 60 percent of ships combat systems works,” including installation and integration in the Saudi market, perfectly aligned with the Kingdom’s Vision 2030, by localizing 50% of 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 program management and combat system integration and installation, system engineering, system architecture, hardware design, software development, testing and verification, prototyping, simulation, modelling, and through-life support.
Ahmed Al-Khateeb, Chairman of Saudi Arabian Military Industries, said: “SAMI remains committed to being a key enabler of the Saudi Vision 2030, and the establishment of this Joint Venture with Navantia will localize more than 60% of ship combat systems work 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 localize more than half of the Kingdom’s total military spending.”
Esteban Garcia Vilasanchez, Chairman of Navantia, said: “Navantia is very happy with the signature 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 JV between SAMI and Navantia is an opportunity to develop capabilities in the country and jointly explore future opportunities.”
For the Avante 2200 contract, the JV will be responsible, among others, of supplying the Combat System of all five ships. Corvettes 4th and 5th will be finalized and delivered to the Kingdom of Saudi Arabia, where the JV will do the installation, integration and test of the complete Combat System.

Saudi Arabia’s top sovereign wealth fund, the Public Investment Fund (PIF), launched SAMI last year as part of a government plan to diversify the economy, reduce reliance on oil export revenues and create jobs.
SAMI aims to contribute more than 14 billion riyals ($3.7 billion) to the country’s gross domestic product by 2030, according to SPA.

King Salman receives Saudi education officials

King Salman receives officials of theMinistry of Education and Saudi universities at Al-Yamamah Palace in Riyadh on Monday. (SPA)
Updated 11 December 2018

King Salman receives Saudi education officials

  • The king stressed the role of education in the development of a country

RIYADH: Top officials of the Ministry of Education and Kingdom’s universities on Monday called on King Salman at Al-Yamamah Palace in Riyadh. 

The king stressed the role of education in the development of a country. Saudi Arabia ranks as the largest market for education services in the region, and it also accounts for a growing number of students enrolled in the kindergarten to grade 12 education system in the six-nation Gulf Cooperation Council. 

Strong government support over the past few years has led to the continuous expansion of the education sector by inviting private players to enter the space.

According to a study conducted by Research and Markets, the higher education industry of the Kingdom inclined at a single digit compound annual growth rate during the period 2012-2017. 

The establishment of new universities due to increased investments in the education sector was the key contributor to the augmented revenues generated by the market players.