Saudi Arabian Military Industries (SAMI) has signed a Memorandum of Agreement (MoA) with Boeing to develop a joint venture with a view to localising more than 55% of the MRO services for fixed and rotary-wing military aircraft in Saudi Arabia.

The agreement will also transfer technology to install weaponry on these aircraft, as well as establishing the supply chain for spare parts in the Kingdom.

The move is in line with Saudi Arabia's Vision 2030 and the ambition to bring 50% of total military spending in-country by 2030.

The joint venture agreement will provide sustainment services for fixed- and rotary-wing military aircraft of the KSA ‎military fleet and will be the sole provider of these ‎services for all military aviation platforms of ‎the KSA military fleet.

The MoA is seen leading to the development of local research, design, engineering, manufacturing, and MRO abilities, as well as creating 6,000 jobs and training opportunities. A total of $450m will be invested in facilities and equipment in Saudi Arabia.

The joint venture — which is expected to post revenues in excess of $22bn by 2030 — will provide a foundation for future platform sales and for expanding Boeing's presence in the Kingdom to support market growth for both commercial and defence programmes.

The creation of SAMI was announced in May 2017. The 100% government-owned entity aims to become one of the world's top 25 defence companies by 2030.