Lockheed Martin Completes First Saudi Produced THAAD Components

A recent meeting at Arabian International Co. for Steel Structures (AIC) in Jeddah to announce the First Saudi Produced THAAD Components 
A recent meeting at Arabian International Co. for Steel Structures (AIC) in Jeddah to announce the First Saudi Produced THAAD Components 
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Lockheed Martin Completes First Saudi Produced THAAD Components

A recent meeting at Arabian International Co. for Steel Structures (AIC) in Jeddah to announce the First Saudi Produced THAAD Components 
A recent meeting at Arabian International Co. for Steel Structures (AIC) in Jeddah to announce the First Saudi Produced THAAD Components 

The US Lockheed Martin company announced on Sunday that Saudi Arabia has completed the first domestically manufactured components for the Terminal High Altitude Area Defense system launcher in Jeddah, marking a significant step forward in the Kingdom’s ongoing efforts to localize its defense industry.

The THAAD deal was a core part of the weapons sale offering presented by US President Donald Trump during his May 20 visit to Saudi Arabia in 2017.

The announcement was made during a recent meeting at Arabian International Co. for Steel Structures (AIC) in Jeddah, attended by Tim Cahill, president of missiles and fire control at Lockheed Martin, General Authority for Military Industries (GAMI) Assistant Deputy Nawaf Albawardi, and Wasim Attieh, president of AIC.

The milestone reflects a growing collaboration between AIC and Lockheed Martin, aimed at advancing Saudi Arabia’s defense manufacturing capabilities. The locally produced components were developed through precision welding and advanced manufacturing techniques, reinforcing both the Kingdom’s defense industrial base and the US supply chain by establishing a second source of production.

“This is a tremendous milestone for the United States of America and the Kingdom of Saudi Arabia as our nations work to fulfill the Kingdom’s THAAD procurement,” said Tim Cahill. “Through this program, we're not only supporting Saudi Vision 2030 and enhancing regional defense capacity, but we’re also generating high-quality manufacturing jobs in the United States and strengthening the American defense industrial base.”

AIC Steel President Wasim Attieh praised the collaboration, saying, “Lockheed Martin has been an excellent partner in providing the tools and training necessary to prepare and ultimately advance the localized production of such a major component of the THAAD Weapon System.”

He added, “I look forward to working together to ensure a more secure future for the Kingdom of Saudi Arabia.”

THAAD is a combat-proven missile defense system designed to intercept short-, medium-, and intermediate-range ballistic missiles both inside and outside the earth’s atmosphere. Its operational readiness, flight test success, and proven performance continue to draw international interest.

 

 



Saudi Arabia Stockpiles Surplus Oil Production to Face Global Crises

Employees at Aramco (Asharq Al-Awsat)
Employees at Aramco (Asharq Al-Awsat)
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Saudi Arabia Stockpiles Surplus Oil Production to Face Global Crises

Employees at Aramco (Asharq Al-Awsat)
Employees at Aramco (Asharq Al-Awsat)

Saudi Arabia has long followed a clear and transparent approach to preserving stability in global energy markets. Historically, it has consistently adhered to all decisions issued by the OPEC+ alliance and played a leading role alongside other producers to ensure compliance and promote the collective good.

Recently, the Kingdom briefly increased production volumes. However, the additional output was neither marketed domestically nor exported abroad. Instead, it was directed as a precautionary measure to strengthen strategic reserves, improve supply flows between the country’s eastern and western regions, and rebalance stocks held in overseas storage facilities.

Asharq Al-Awsat reached out to energy specialists to understand the significance of this move for energy security. Experts explained that building strategic reserves allows Saudi Arabia to respond swiftly to customer needs in the event of political crises, regional wars, adverse weather, or other unforeseen disruptions.

Fouad Al-Zayer, former head of data services at OPEC and an energy expert, said the Kingdom maintains millions of barrels in storage both inside and outside its borders. These reserves serve as a buffer during emergencies, enabling the country to compensate for supply shortfalls within a short timeframe. He emphasized that this stored crude is strategically critical in the face of geopolitical tensions and conflicts.

According to Al-Zayer, Saudi Arabia relies on an extraordinary reserve capacity unmatched by any other producer. The country currently produces more than 9 million barrels per day, with the capability to pump even higher volumes if needed. He noted that Saudi reserves alone account for 3 million barrels per day out of roughly 5 million barrels in global spare capacity, underscoring Riyadh’s central role in stabilizing markets and upholding its commitments under OPEC+ agreements.

He added that Saudi Arabia also hosts the International Energy Forum, which works to improve data quality and transparency in the sector. In June, the Kingdom’s output reached about 9 million barrels per day, with the modest increase attributed to logistical considerations. Al-Zayer stressed that it is common for producers to temporarily boost production to support maintenance operations or replenish storage, without impacting the broader market, since these barrels are not immediately traded.

He reiterated that Saudi Arabia has always honored OPEC+ production targets and has played a pivotal role in encouraging other members to meet their quotas.

Meanwhile, Dr. Mohammed Al-Sabban, former senior adviser to the Saudi Minister of Petroleum, explained that the Kingdom has consistently proven itself a reliable and secure supplier to global energy markets. He noted that Saudi Arabia’s recent statement clarified the reasons behind the June production uptick, emphasizing that the additional oil was neither destined for local consumption nor for export but was solely intended to refill domestic and foreign storage. He said such measures do not represent any breach of commitments, unlike the practices of some other countries.

Al-Sabban pointed out that Saudi Arabia has often gone beyond required cuts to help stabilize markets. Even the recent production increases, he said, fall within the scope of voluntary adjustments agreed upon by OPEC+ members. He noted that in July, Saudi Arabia raised production in line with credible studies indicating the market could absorb these volumes without disruption.