Saudi Arabia has agreed to purchase Russian S-400 surface-to-air missile systems, the TOS-1A, the AGS-30 and the Kalashnikov AK-103.
A memorandum of understanding was signed between Russia's state company for exporting military products Rosoboronexport and state-owned Saudi Arabian Military Industries as well as other agreements.
Under the guidance of Crown Prince Mohammed bin Salman, the two parties signed these agreements, which are expected to play a pivotal role in the growth and development of the military systems industry in Saudi Arabia.
The MoU focuses on localizing the manufacturing and sustainment of advance armament systems in the Kingdom of Saudi Arabia in line with the objectives of Saudi Vision 2030.
Educational and training programs for Saudi citizens will also take place according to the agreement, to ensure the sustainability and development of the military industries sector in Saudi Arabia.
These agreements are expected to have tangible economic contributions and create hundreds of direct jobs. They will also transfer cutting-edge technologies that will act as a catalyst for localizing 50 percent of the Kingdom's military spending as targeted by Vision 2030; which was launched by the Crown Prince, Deputy Prime Minister and Minister of Defense.
The Public Investment Fund of Saudi Arabia announced in March establishing a new national company for military industries, Saudi Arabian Military Industries, which represents a significant component of Vision 2030 and a transitional point in the development of military products and services that meet the highest international standards.
The strategic target of the company is to become among the top 25 military industry companies worldwide by 2030 to transform the kingdom into a strong partner in the military sector on the world level.
It is expected to contribute to the GDP with more than QAR14 billion (USD3.733 billion).