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Saudi, Turkish Companies Ink Agreement and 2 MoUs to Localize Drone Industry

Saudi companies specialized in military and defense industries and Turkish defense companies have signed an agreement and 2 memorandums of understanding (MoUs). SPA
Saudi companies specialized in military and defense industries and Turkish defense companies have signed an agreement and 2 memorandums of understanding (MoUs). SPA
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Saudi, Turkish Companies Ink Agreement and 2 MoUs to Localize Drone Industry

Saudi companies specialized in military and defense industries and Turkish defense companies have signed an agreement and 2 memorandums of understanding (MoUs). SPA
Saudi companies specialized in military and defense industries and Turkish defense companies have signed an agreement and 2 memorandums of understanding (MoUs). SPA

Several Saudi companies specialized in military and defense industries and Turkish defense companies have signed an agreement and two memorandums of understanding (MoUs) to localize the drone industry and its component systems within the Kingdom.

Sunday’s signing ceremony in Riyadh was under the patronage of Saudi Minister of Defense Prince Khalid bin Salman bin Abdulaziz.

The agreement and MoUs are an extension of the two acquisition contracts signed by the Saudi Defense Ministry two weeks ago with Turkish defense company "Baykar" to raise the readiness of the armed forces and enhance the Kingdom's defense and manufacturing capabilities.

During the ceremony held on this occasion, the Saudi Arabian Military Industries (SAMI) signed a localization agreement with Baykar.

The agreement focuses on the manufacturing of electronic systems, mechanical components, and drone structures using composite materials, as well as encompassing manufacturing, final aviation testing, and the provision of training and support services.

The CEO of SAMI, Eng. Waleed bin Abdulmajeed Abu Khaled, and the CEO of Baykar, Haluk Bayraktar, signed the localization agreement.

Moreover, the Saudi National Company for Mechanical Systems (NCMS) signed a MoU with Roketsan and Aselsan, two leading Turkish defense companies, to localize the production of ammunition and optical sensors for drones in the Kingdom.

Representing the Saudi side, the CEO of the MCMS, Eng Ali Abdulla Alashban, signed the MoU while the CEOs of the Turkish companies Aselsan and Roketsan, Ahmet Akyol and Murat Ikinci, respectively, signed on behalf of their companies.

Assistant Minister of Defense for Executive Affairs Dr. Khalid bin Hussein Al-Bayari expressed his gratitude for the gracious patronage of the Minister of Defense, emphasizing the wise leadership's keen interest and support in localizing military industries and enhancing manufacturing and defense capabilities in the Kingdom.

The Assistant Minister stressed that the localization agreement and the MoUs reflect the concerted efforts of the Ministry of Defense, in coordination with the General Authority for Military Industries (GAMI) as the legislative authority for the military industry sector, and the General Authority for Defense Development (GADD), responsible for defining research, development, and innovation objectives in technology and defense systems.

This achievement aligns with Saudi Vision 2030's target of localizing more than 50% of total military spending, he clarified.

Dr. Khalid indicated that they would also significantly contribute to the development of localization capabilities within the Kingdom through technology transfer, knowledge sharing, and training of Saudi personnel. This will not only strengthen local capabilities but also create valuable employment opportunities for the Saudi youth, he noted.

During the ceremony, the CEO of SAMI highlighted that the signing of the agreement and MoUs reaffirms the strong support and interest of the wise leadership in localizing the defense industries sector and advancing the goals of Saudi Vision 2030.

Additionally, Eng. Waleed emphasized that the localization agreement represents a major milestone for SAMI, positioning the company among the top 25 companies in this sector globally.

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Egypt Raises Fuel Prices for First Time in 2025

Representation photo: Arley Perez pumps diesel fuel into his truck at a Shell station on April 10, 2025 in Miami, Florida. Joe Raedle/Getty Images/AFP
Representation photo: Arley Perez pumps diesel fuel into his truck at a Shell station on April 10, 2025 in Miami, Florida. Joe Raedle/Getty Images/AFP
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Egypt Raises Fuel Prices for First Time in 2025

Representation photo: Arley Perez pumps diesel fuel into his truck at a Shell station on April 10, 2025 in Miami, Florida. Joe Raedle/Getty Images/AFP
Representation photo: Arley Perez pumps diesel fuel into his truck at a Shell station on April 10, 2025 in Miami, Florida. Joe Raedle/Getty Images/AFP

Egypt hiked prices on fuel products on Friday by up to almost 15%, state media reported, marking the first increase in 2025 as the government seeks to reduce fuel subsidies as required by the International Monetary Fund's (IMF) $8 billion support package.

The increases of between 11.76% and 14.81% on a wide range of fuel products come almost a month after the IMF approved the disbursement of $1.2 billion to Egypt following completion of the fourth review of its loan program signed last year.

Egypt has taken on back-to-back financing facilities with the IMF since 2016, when it agreed a $12 billion loan program to resuscitate its economy after years of political turmoil since the Arab Spring protests began.

Since then, the lender has pushed the government to cut fuel, electricity and food subsidies while expanding social safety nets.

The fund said in March that Egypt was committed to lowering its energy subsidies to reach cost recovery by December as it works to reduce a wide current account deficit, reported Reuters.

Prices for diesel fuel, one of the most commonly used fuels in the country, were raised by 2 Egyptian pounds ($0.0390) to 15.50 pounds per liter from 13.50 pounds.

Gasoline prices increased by as much as 14.5% depending on the grade, with 80 octane gasoline rising to 15.75 pounds, 92 octane to 17.25 pounds and 95 octane to 19 pounds.

Meantime, the prices of the butane cooking gas were hiked to 200 pounds per cylinder from 150 pounds.

Prime Minister Mostafa Madbouly said in March that by the year's end the government will have stopped petroleum subsidies from being a financial strain, but it will continue to subsidize diesel to some degree and will not price it at 100% of its cost.

Egypt still spent about 10 billion Egyptian pounds ($197.71 million) on fuel subsidies each month, despite having raised prices three times in 2024, Petroleum Minister Karim Badawi said in October following the last hike that ranged between 11% and 17%.

Egypt in 2024 witnessed a sharp decline in revenues from its Suez Canal, a main source of foreign currency for the government, as the war in Gaza led Iran-aligned Houthis in Yemen to attack vessels transiting the Red Sea in support of Palestinians.

That, combined with diminishing local natural gas production which Egypt had even begun exporting, has compounded the country's economic woes and left it strapped for dollars.

Egypt needs these dollars to import natural gas, petroleum and wheat for its sprawling food subsidy program that feeds more than 62 million people.

Since early 2022, the foreign currency shortage has curbed local business activity and led to backlogs at ports and delays in payments for commodities, forcing Egypt to request a 46-month expanded loan from the IMF.

The pound has since lost more than two-thirds of its value against the dollar in a series of staggered devaluations, while petrol prices in Egypt remain some of the lowest in the world.