RIYADH, 8 April 2008 — Riyadh-based Advanced Electronics Company (AEC) has signed an agreement with UK-based Thales to establish a new company to design, develop and manufacture simulators in Saudi Arabia.
“We are indeed happy with the partnership with Thales to set up a company to manufacture different kinds of devices that will help train pilots for different kinds of aircraft before going on various flying mission,” Dr Ghassan A. Al-Shibl, AEC president and CEO, told a press conference held at the Four Seasons Hotel on Sunday.
The company, which will be registered with the Saudi Arabian General Investment Authority (SAGIA), also includes training and full technical support, manpower and spare parts. The company will have a capital of SR5 million and is expected to generate SR5 billion in sales in 10 to12 years.
Dr. Al-Shibl said that in setting up the joint venture firm, AEC and Thales are addressing a market need since the Kingdom has always been importing its requirements for simulators. Aside from the Ministry of Defense and Aviation, the company is also eyeing the Ministry of Interior as one of its customers for its different products and services.
“The agreement will create local capabilities to fulfil the needs and requirements of different military branches in Saudi Arabia. It will also enhance the national capability to create job opportunities for Saudi nationals,” Dr. Al-Shibl said.
He added that the setting up of the joint venture firm is not the first time that AEC works with Thales.