http://www.geostrategy-direct.com/geostrategy-direct/secure/2010/11_03/3.asp

 

Saudis make expansion of defense industries a national priority 

ABU DHABI - Saudi Arabia has been examining defense industry projects with
Western majors. 

Officials said Saudi Deputy Defense Minister Prince Khalid Bin Sultan has
been meeting industry chiefs to plan major military projects. They said
Khalid wanted to ensure that Saudi industry was prepared to conduct such
tasks as assembly and maintenance of combat platforms, including the
Eurofighter Typhoon and F-15. 

"The Saudi aerospace and defense industry has clearly grown over the last
two years, but the question is whether this is enough to participate in
major projects?" an Saudi industry source said. 

On Oct. 19, Khalid convened the state-owned Saudi General Organization for
Military Industries to discuss partnerships with the kingdom's private
sector. The deputy minister said the effort to expand the defense industry
marked a priority of the kingdom. 

Saudi Arabia has been preparing for the assembly and maintenance of 72
Eurofighter Typhoons in a deal with BAE Systems. Officials also cited
Riyad's negotiations with the United States for up to 84 F-15 fighters,
produced by Boeing. 

"With all its resources, the kingdom together with its allies like the UK
can build indigenous capacity," British ambassador Sir Tom Phillips said.
"We see Saudi Arabia as our prime strategic partner in this region." 

On Oct. 19, a British defense and security mission discussed cooperation
with Saudi officials and industry leaders. The mission, UK Trade &
Investment, consisted of 20 top British defense firms with plans for
industrial cooperation in the Gulf Cooperation Council kingdom. 

"This visit is an excellent chance for UK and Saudi companies to build
relationships and forge new business links," the British office said. 

Saudi companies have been complaining that they were losing contracts to
their foreign counterparts. In a non-defense contract, Saudi companies cited
a $550 million deal given to a Chinese company by the Education Ministry. 

"On the other hand, government departments strictly applied all terms and
conditions including penal action against any national contractor working on
their projects," Fatah Al Hamad, an official from the Riyad Chamber of
Commerce and Industry, said. "But they do not find it easy to apply such
measures on foreign contractors." 

 



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