Saudi defense contractor to invest up to $16 million to further localize services

Saudi-based defense contractor Middle East Propulsion Company plans to invest up to $16 million over the next two years to upgrade its capabilities. (Kateryna Kadabashy/AN)
Updated 24 November 2019

Saudi defense contractor to invest up to $16 million to further localize services

DUBAI: Saudi-based defense contractor Middle East Propulsion Company (MEPC) plans to invest between $13 million and $16 million over the next two years to build test cells for aircraft engines and establish new production lines.
These expansion activities should complement the company’s objective to localize high-tech repairs and combine them in one roof for the Saudi defense ministry, which is a major customer, CEO Abdullah Al-Omari told Arab News.
Instead of sending aircraft engines and engines modules overseas for further servicing, thus take up more time before military assets return to actual service, localization not only cuts the turn-around period but also reduces Saudi government spending for the repairs.
“We have accomplished more than 1,600 engine and engine modules [since 2001, they] have been maintained totally in Saudi Arabia,” Al-Omari said at the sidelines of the Dubai Airshow. “The engines consume 45 percent of what you spend on aircraft.”
The company works on 150 to 160 engines and engine modules every year.




Abdullah Al-Omari, the CEO Middle East Propulsion Company, says thay have maintained locally more than 1,600 engine and engine modules since 2001. (Middle East Propulsion Company)


MEPC is the first specialized MRO (maintenance, repair and overhaul) company operating in the Middle East, according to its website. It has invested over $26 million during the previous two years for the localization of its MRO services.
“We used to send these parts to outside, it takes 6 months to 24 months sometimes … in case of the Apache engines, minimum turn around is 24 months,” Al-Omari said, but their localization efforts have greatly improved their capability by cutting the turn-around period to only 150 days.
The speed at which MEPC is able to repair engines and modules, boosts the readiness of Saudi military, Al-Omari added.
The company is in talks with major defense contractors, including Honeywell for the Abrams tanks and GE T700 engines, for possible tie-ups to further improve their capability, he said.
“Currently there is a potential with the Kuwait army to provide them with similar services [being delivered to the Saudi defense ministry],” Al-Omari said, and expects that cooperation would start “within the next two years or so.”


Riyadh to host next World Economic Forum regional summit

Updated 16 min 18 sec ago

Riyadh to host next World Economic Forum regional summit

  • The theme of the meeting will be the place of the region in the fourth industrial revolution
  • Middle East WEF’s in the past have been staged in Egypt, Jordan and some have been held in the UAE

DAVOS: Saudi Arabia will host the next Middle East summit of the World Economic Forum, the first time the Kingdom has staged the prestigious meeting of world leaders, it was announced in Davos on Thursday.

Borge Brende, the WEF president, told delegates: “The next Middle East summit will be held in Saudi Arabia on the 5 and 6 of April this year.”

The theme of the meeting will be the place of the region in the fourth industrial revolution, according to a posting on the official WEF website.

Middle East WEF’s in the past have been staged in Egypt, Jordan and some have been held in the UAE.

The announcement was made at a special meeting at Davos to consider the strategic priorities for Saudi Arabia as it prepares to stage the G20 meeting of world leaders in the Kingdom in November, the first time the power-summit has been held in the Middle East.