Boeing creates joint venture with Saudi defense ministry

By John Liang / April 2, 2018 at 4:30 PM

Boeing and Saudi Arabia's defense ministry have signed an agreement to set up a joint venture that would provide sustainment services for the kingdom's fixed- and rotary-wing military aircraft.

Up to 55 percent of all maintenance, repair and overhaul services would be done by Saudi subcontractors, according to a joint statement issued March 30 by Boeing and the Saudi government.

The joint venture "will provide a foundation for future platform sales and for expanding Boeing's presence in the Kingdom to support market growth in both the commercial and defense sectors," the statement reads.

Under the agreement, 6,000 new jobs will be created for Saudi citizens by 2030, according to the statement.

Mohammed bin Salman bin Abdulaziz, Saudi Arabia's crown prince and defense minister, and Boeing chief executive Dennis Muilenburg signed the agreement at the company's offices in Seattle during an official visit of senior leaders from the kingdom.

"With this local capability dedicated to sustaining all U.S.-made defense platforms, we can better serve our customers and support the Kingdom's goals of localization and economic growth," Muilenburg said.