Saudi military acquisitions continue
US defence firm Lockheed Martin has announced that it would receive the first payment towards delivering a $15 billion missile defence system to Saudi Arabia.
Saturday 09/03/2019
Defence strategy. Saudi Arabian Military Industries' logo on display during the International Defence Exhibition and Conference (IDEX) in Abu Dhabi, February 17. (Reuters)
LONDON - With an ongoing war in Yemen and the threat posed by Iran, Saudi efforts to obtain arms and equipment continue despite the kingdom slashing its 2019 military budget and calls to curb arms sales because of the Yemen conflict.
US defence firm Lockheed Martin has announced that it would receive the first payment towards delivering a $15 billion missile defence system to Saudi Arabia as part of a $110 billion arms deal negotiated with the Trump administration in 2017.
The announcement said Lockheed Martin would provide Saudi Arabia with the Terminal High Altitude Area Defence (THAAD) system, ending speculation that the deal was in jeopardy because of the Yemen conflict and the killing of journalist Jamal Khashoggi last October at the Saudi Consulate in Istanbul.
This “marks a step towards protecting the United States and its regional partners from Iranian-origin missiles," an unidentified US State Department official told CNBC.
"The sale of the THAAD missile defence system benefits US national security by supporting the long-term security of Saudi Arabia and the Gulf region in the face of the growing ballistic missile threat from the Iranian regime and Iran-backed extremist groups," the official said.
In December, Riyadh said it would cut military spending in the 2019 budget with education at the forefront of government spending. Saudi Arabia also reduced defence spending in 2018. However, despite the cuts, Riyadh remains one of the world’s largest defence weapons and equipment importers, spending $7.8 billion on military procurement in 2018.
The Lockheed Martin agreement comes at a time some of Saudi Arabia’s other military deals have stalled.
Germany has extended its arms ban on Saudi Arabia but that is expected to end soon. That extension came despite British Foreign Secretary Jeremy Hunt urging German Minister of Foreign Affairs Heiko Maas -- as disclosed in a leaked personal letter -- to lift the ban.
Hunt said the ban negatively affects the “British and European defence industry and the consequences for Europe’s ability to fulfil its NATO commitments.” The ban by Germany was affecting possible UK arms sales because components of British equipment are made in Germany.
Canadian Prime Minister Justin Trudeau said he was looking for a way out of a $13 billion deal with Saudi Arabia for armoured vehicles but it appears to be proceeding.
“Regarding the Canada arms deal, we see the Canadian government going ahead with the deal, so the statements are for domestic consumption,” Saudi Minister of State for Foreign Affairs Adel al-Jubeir said March 4 at a news conference in Riyadh.
Saudi Arabia has taken steps in recent years to create an indigenous defence industry. Officials in Riyadh said that endeavour would tackle multiple issues, including self-reliance in terms of military needs and the creation of jobs in a country whose youth demographic makes up 60% of the population.
Riyadh’s goal is to locally produce half of its defence and security equipment needs by 2030. Future arms contracts with Saudi Arabia will include conditions that manufacturing of components and final assembly be completed in the country.
“Defensive realism has long been the adopted strategy in Saudi Arabia,” wrote political analyst Ekleel Badr Sallam in the Saudi Gazette. “With the creation of a local defence industry, Saudi Arabia will be able to look beyond its traditional Western allies in this regard. The kingdom has made it clear that it has other options and that every deal will be evaluated very carefully."
In May 2017, Saudi Arabian Military Industries (SAMI) was established to achieving that goal, which includes creating more than 40,000 direct jobs and 100,000 indirect jobs by 2030, while generating more than $3.7 billion a year in revenues.
The firm aims to be among the top 25 global military industries companies by 2030.
https://thearabweekly.com/saudi-military-acquisitions-continue
US defence firm Lockheed Martin has announced that it would receive the first payment towards delivering a $15 billion missile defence system to Saudi Arabia.
Saturday 09/03/2019
Defence strategy. Saudi Arabian Military Industries' logo on display during the International Defence Exhibition and Conference (IDEX) in Abu Dhabi, February 17. (Reuters)
LONDON - With an ongoing war in Yemen and the threat posed by Iran, Saudi efforts to obtain arms and equipment continue despite the kingdom slashing its 2019 military budget and calls to curb arms sales because of the Yemen conflict.
US defence firm Lockheed Martin has announced that it would receive the first payment towards delivering a $15 billion missile defence system to Saudi Arabia as part of a $110 billion arms deal negotiated with the Trump administration in 2017.
The announcement said Lockheed Martin would provide Saudi Arabia with the Terminal High Altitude Area Defence (THAAD) system, ending speculation that the deal was in jeopardy because of the Yemen conflict and the killing of journalist Jamal Khashoggi last October at the Saudi Consulate in Istanbul.
This “marks a step towards protecting the United States and its regional partners from Iranian-origin missiles," an unidentified US State Department official told CNBC.
"The sale of the THAAD missile defence system benefits US national security by supporting the long-term security of Saudi Arabia and the Gulf region in the face of the growing ballistic missile threat from the Iranian regime and Iran-backed extremist groups," the official said.
In December, Riyadh said it would cut military spending in the 2019 budget with education at the forefront of government spending. Saudi Arabia also reduced defence spending in 2018. However, despite the cuts, Riyadh remains one of the world’s largest defence weapons and equipment importers, spending $7.8 billion on military procurement in 2018.
The Lockheed Martin agreement comes at a time some of Saudi Arabia’s other military deals have stalled.
Germany has extended its arms ban on Saudi Arabia but that is expected to end soon. That extension came despite British Foreign Secretary Jeremy Hunt urging German Minister of Foreign Affairs Heiko Maas -- as disclosed in a leaked personal letter -- to lift the ban.
Hunt said the ban negatively affects the “British and European defence industry and the consequences for Europe’s ability to fulfil its NATO commitments.” The ban by Germany was affecting possible UK arms sales because components of British equipment are made in Germany.
Canadian Prime Minister Justin Trudeau said he was looking for a way out of a $13 billion deal with Saudi Arabia for armoured vehicles but it appears to be proceeding.
“Regarding the Canada arms deal, we see the Canadian government going ahead with the deal, so the statements are for domestic consumption,” Saudi Minister of State for Foreign Affairs Adel al-Jubeir said March 4 at a news conference in Riyadh.
Saudi Arabia has taken steps in recent years to create an indigenous defence industry. Officials in Riyadh said that endeavour would tackle multiple issues, including self-reliance in terms of military needs and the creation of jobs in a country whose youth demographic makes up 60% of the population.
Riyadh’s goal is to locally produce half of its defence and security equipment needs by 2030. Future arms contracts with Saudi Arabia will include conditions that manufacturing of components and final assembly be completed in the country.
“Defensive realism has long been the adopted strategy in Saudi Arabia,” wrote political analyst Ekleel Badr Sallam in the Saudi Gazette. “With the creation of a local defence industry, Saudi Arabia will be able to look beyond its traditional Western allies in this regard. The kingdom has made it clear that it has other options and that every deal will be evaluated very carefully."
In May 2017, Saudi Arabian Military Industries (SAMI) was established to achieving that goal, which includes creating more than 40,000 direct jobs and 100,000 indirect jobs by 2030, while generating more than $3.7 billion a year in revenues.
The firm aims to be among the top 25 global military industries companies by 2030.
https://thearabweekly.com/saudi-military-acquisitions-continue
