Defence industry to benefit from new Saudi deal

Manufacturing News, Source : TheManufacturer.com
Published : 22 Dec 2005 9:56

The Government is strengthening its ties with Saudi Arabia through “a greater partnership in modernising the Saudi Arabian Armed Forces,” it was announced by the MoD yesterday.

The Ministry said the partnership recogniseda shared need to preserve national security and to combat global terrorism.

Saudi Arabia's efforts further to develop a regional defence industrial centre of excellence will be boosted through primary UK defence contractor BAE Systems investing in local Saudi companies, developing an industrial technology transfer plan, and providing training for thousands of Saudi nationals.

The two Governments recognise the requirement to provide enhanced capabilities to existing military assets and ensure that they can be supported by local Saudi industry. Under the terms of the signed document Typhoon aircraft will replace Tornado Air Defence Variant aircraft and others currently in service with the RSAF.

The MoD said details of these arrangements were confidential between the two governments.

Defence minister Dr John Reid said the agreement offered opportunities for “forging closer links between our armed forces and industries, which will benefit both nations." It was good news for both UK and Saudi industry, he said. BAE Systems, as prime contractor, and its many UK sub-contractors would benefit from the work envisaged under the understanding, which wwould help sustain several thousand UK jobs over the next 10 years. In addition, the associated technology transfer, training and inward investment packages would generate many skilled jobs in Saudi Arabia.

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