The Saudi Ministry of Defense has signed a memorandum of understanding with the Turkish company Baykar to acquire drones to bolster the Kingdom's defense and manufacturing capabilities.
Saudi Arabia and Türkiye signed five agreements encompassing investment, the defense industry, energy, and communications.
The agreements were signed in the presence of the Saudi Crown Prince and Prime Minister, Prince Mohammed bin Salman, and Turkish President Recep Tayyip Erdogan, who is visiting Riyadh.
Saudi Defense Minister Prince Khalid bin Salman announced signing an executive plan for defense cooperation with Türkiye's Minister of National Defense Yasar Guler.
Prince Khalid bin Salman announced the signing of two acquisition contracts between the Ministry of Defense and the Turkish company Baykar for defense industries, according to which the Saudi side will acquire unmanned aircraft to increase the armed forces' readiness and strengthen the Kingdom's defense and manufacturing capabilities.
The Minister announced that he signed a defense cooperation plan with his Turkish counterpart, in line with the two friendly countries' military and defense cooperation efforts.
- Exchange of expertise
On Tuesday, the Saudi Ministry of Defense stated that the executive plan aims to promote collaboration between the defense ministries of both countries in various areas, such as defense capabilities, industries, research and development, production, and the exchange of experiences.
It also emphasizes bilateral cooperation in joint projects to transfer and localize technologies, support defense industries, and foster collaboration in research and development.
According to the Ministry of Defense, the two acquisition contracts signed with Baykar aim to boost the armed forces' readiness and enhance the Kingdom's defense and manufacturing capabilities.
The acquisition contracts also prioritize the localization of the drone industry and its constituent systems within the Kingdom. National companies specializing in military and defense industries will actively participate in this localization effort.
The contracts encompass provisions for training, support services, technology and knowledge transfer, and the development of local capabilities.
The acquisitions are expected to create job opportunities for Saudi youth, enhance local capacities, and contribute to the Kingdom's vision of localizing over 50 percent of total military spending by 2030.
The executive plan for defense cooperation and the acquisition contract confirm the Ministry of Defense's support and embodies the Kingdom's Vision that aims to localize military industries in manufacturing and supporting systems.
Baykar said the deal includes knowledge transfer and joint production.
"This cooperation aims not only to strengthen the bond between our countries but also contribute to regional and global peace," Baykar said in a press release.
Baykar added that 75 percent of its revenue has come from exports since it began drone research and development in 2003.
- Contracting sector
Meanwhile, the head of the Independent Industrialists and Businessmen Association (Musiad), Mahmut Asmali, asserted that the support of the two governments in creating the investment environment enhances building alliances between Saudi and Turkish companies.
Asmali told Asharq Al-Awsat that Saudi Arabia and Türkiye are the region's two most important Islamic countries, considering the development of these relations and the signing of such agreements between businessmen to enhance inter-relationships and investments.
Saudi Arabia has set several goals for 2030 that include large economic projects, said Asmali, stressing that officials and companies in Türkiye are aware of these projects.
He stressed the readiness of Turkish companies to cooperate with their Saudi counterparts to achieve Vision 2030, especially in the contracting sector.
Asmali announced the readiness to transfer Turkish expertise to Saudi partners in several industries, including foodstuffs, tourism, technology, and modern technologies.
He announced that 200 Turkish companies in various sectors participated in the Saudi-Turkish Business Forum held in Jeddah on Monday.
The Forum was launched by the Investment Minister, Khalid al-Falih, and the Turkish Minister of Trade, Omar Bolat.
It included representatives from companies and the private sector from both sides to expand and strengthen trade and investment relations between the two countries.
The Forum witnessed the signing of nine memorandums of understanding, including energy, real estate, construction, education, digital technologies, health, and media.
Falih said that the Saudi-Turkish economic partnership has great potential and is a main engine for boosting investments between the two countries.
He stated that the Forum aims at cooperation and partnership to review the investment opportunities in both countries.
He touched on the National Investment Strategy to enable diversified investments, develop opportunities, improve the business environment, and boost the Kingdom's competitive position on the global investment map.
The Turkish Minister of Trade stated that the Kingdom and Türkiye are emerging economic powers with significant competitive advantages.
