Saudi SAMI Signs Agreements with Airbus Helicopter Arabia, Singapore's ST Engineering

The Aviation and Space Systems Sector signs a contract with Airbus Helicopters Arabia to support SAMI in building its technical capabilities to provide rotercraft technical support to Saudi Armed forces. (SAMI)
The Aviation and Space Systems Sector signs a contract with Airbus Helicopters Arabia to support SAMI in building its technical capabilities to provide rotercraft technical support to Saudi Armed forces. (SAMI)
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Saudi SAMI Signs Agreements with Airbus Helicopter Arabia, Singapore's ST Engineering

The Aviation and Space Systems Sector signs a contract with Airbus Helicopters Arabia to support SAMI in building its technical capabilities to provide rotercraft technical support to Saudi Armed forces. (SAMI)
The Aviation and Space Systems Sector signs a contract with Airbus Helicopters Arabia to support SAMI in building its technical capabilities to provide rotercraft technical support to Saudi Armed forces. (SAMI)

The Aviation and Space Systems Sector, an affiliate of Saudi Arabian Military Industries (SAMI), signed on Monday a contract with Airbus Helicopters Arabia, the Kingdom’s subsidiary of Airbus helicopters to support SAMI in building its technical capabilities to provide rotercraft technical support to Saudi Armed forces.

The agreement will play a key role in equipping the staff with vital helicopter airframe maintenance skills and enhance its repair capabilities for landing gears, engines, engine accessories, and blades within the Industrial Partnership Agreement with GAMI, the local MRO players, and the Aircraft Accessories and Components Company (AACC), a SAMI’s subsidiary.

The agreement was signed on the sidelines of the Farnborough International Airshow in the UK which is being held from July 18 - 21 July.

Commenting on the contract, Eng. Walid Abukhaled said: “We are pleased to further strengthen our partnership with Airbus, a major helicopter manufacturer in the industry.”

“This contract will contribute greatly to our ongoing technology and human capital localization efforts through extensive training to accelerate development,” he added.

“We look forward to welcoming Airbus Helicopter’s dedicated staff, who will enable our national talents to gain valuable experience throughout the duration of the agreement.”

Mickael Bertrand, CEO of Airbus Helicopters Arabia, said: “It is with great pride that we embark on this new collaboration with SAMI Aerospace. We are dedicated to empowering one of the region’s most significant industry players through our own personnel’s expertise.”

“This contract also represents an invaluable opportunity to be part of and strengthen our support to the Kingdom’s rapidly developing defense ecosystem.”

SAMI is a wholly owned subsidiary of the Public Investment Fund (PIF) and Saudi Arabia's national champion of defense industries.

Also on Monday, SAMI signed a number of major agreements with a leading Singaporean technology defense and engineering group ST Engineering.

The agreements will support SAMI in producing cutting-edge defense systems toward executing its development and growth strategies in various defense equipment and capabilities, as well as technical support and training.

With these agreements, SAMI and ST Engineering anticipate close collaboration to further fortify the Kingdom’s defense capabilities.

ST Engineering was selected by SAMI as an original equipment manufacturer partner based on its expertise and track record in both the production and supply chain of defense-related equipment.

Aiming to capitalize upon the Singaporean group’s solid brand and reputation globally, the agreements represent SAMI’s continued commitment to partnerships that create a competitive advantage.

Eng. Abukhaled said: “We are proud to undertake these new ventures with ST Engineering, which has consistently stood out as a global leader in the defense sector.”

“With these new initiatives comes a bright opportunity to leverage supply chain capabilities and fortify our local position as the Kingdom drives towards defense sector autonomy in line with the objective of Vision 2030.”

Vincent Chong, Group President & CEO, ST Engineering, said: “We are extremely pleased to partner with SAMI in this collaboration to deliver high performance and robust defense solutions. This is in line with our international defense efforts in establishing strong local partnerships.”

SAMI’s collaboration with ST Engineering first kicked off in 2019 when teams from both organizations worked in unison to develop a joint partnership. The partnership continues to focus on sustainable practices and adding value to defense capabilities within Saudi Arabia.



Israel’s ‘Economic War’ Chokes Occupied West Bank

Palestinians queue to withdraw money from an ATM in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024.
Palestinians queue to withdraw money from an ATM in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024.
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Israel’s ‘Economic War’ Chokes Occupied West Bank

Palestinians queue to withdraw money from an ATM in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024.
Palestinians queue to withdraw money from an ATM in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024.

Palestinian teenagers bounced on trampolines and jumped through hoops inside a towering tent on the outskirts of Ramallah, the financial hub of the occupied West Bank.

But the circus students weren't the only ones bending over backwards in the pavilion: the school's director faced financial hurdles to buy the tent from Europe and trampolines from Asia.

"We are suffering with international payments," said Mohamad Rabah, head of the Palestinian Circus School, describing a bureaucratic process that could delay equipment delivery by up to a month.

Banking in the Palestinian territories is challenging, with the Palestinian Authority (PA) under scrutiny for potential terror financing, hindering transactions.

Israel has occupied the West Bank since 1967, with strong economic ties allowing two Israeli lenders to serve as correspondent banks in the Palestinian territory.

But this may change if Israel's far-right Finance Minister Bezalel Smotrich carries out threats to sever a vital banking route next month.

Since Hamas's October 7 attack triggered the Gaza war, Israel has imposed economic curbs on the PA, withholding tax revenues it collects on its behalf.

Smotrich said this week he had redirected $35 million in PA tax revenues to families of "terrorism" victims, a move condemned by the United States.

After three European countries recognized Palestinian statehood in May, Smotrich told Prime Minister Benjamin Netanyahu he would not extend indemnity to banks that transfer the funds from the end of June.

Israel's Bank Hapoalim and Israel Discount Bank need protection, expiring on July 1, to avoid sanctions for dealing with Palestinian lenders.

Israel's central bank and finance ministry declined to comment when contacted by AFP.

A Palestinian fruit vendor arranges his street cart in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024. (AFP)

- 'Humanitarian crisis' -

The banking channel used to pay for West Bank imports -- including essential goods like water, fuel and food -- handles $8 billion yearly.

Palestinian businesses receive nearly $1.7 billion annually for exports, according to the Palestine Monetary Authority.

"For us, because our economy is dependent on the Israeli economy, because Israel is controlling the border, the impact will be high," said PMA governor Feras Milhem.

The Palestinian economy is largely governed by the 1994 Paris Protocol, which granted sole control over the territories' borders to Israel, including the right to collect import duties and value-added tax for the PA.

Palestinian livelihoods have also been hurt by bans on laborers crossing into Israel and by a sharp downturn in tourism in the territory, including a quiet Christmas season in Bethlehem.

The United States has urged Israel to improve conditions, warning that severing the banking route would have a dire impact on the West Bank economy.

"I believe it would create a humanitarian crisis in due course if Palestinian banks are cut off from Israeli correspondence," US Treasury Secretary Janet Yellen said last month.

Western governments fear Israel's economic policies could destabilize the West Bank.

"The banking system may collapse and therefore the PA may collapse as well," a European diplomatic source in Jerusalem told AFP on condition of anonymity.

"The PA is in a financial crisis and it could collapse before August."

A Palestinian vendor unloads his stock in front of a shop in the main market in Ramallah city in the Israel-occupied West Bank on June 9, 2024. (AFP)

- Digital currency -

Palestinian businessmen say their bottom lines have been hit since October 7.

Imad Rabah, who owns a plastics company, said his net income had fallen 50 percent in one year.

Musa Shamieh, who owns a womenswear company said the Israeli policies were designed to push Palestinians to leave the West Bank.

"They want us to leave our land and they know it will be hard for us to stay if we can't do business," Shamieh said.

Israel's harsh economic policies could eventually drive Palestinian policymakers to pursue sweeping changes to the monetary system.

"We need to work on a plan B when it comes to the trade relations," said Milhem, governor of the PMA, which uses an image of the former Palestinian pound as its logo.

Yousef Daoud, professor at the West Bank's Birzeit University, said the territory could scrap the shekel as its de facto currency in favor of a digital alternative.

"We can make our e-currency, just collect all the shekels, issue an equivalent amount of Palestinian pounds, one-to-one fixed exchange rate, and have the Palestinians deal with e-currency," he said.

"Somehow, eventually, we'll get rid of the shekel."