Saudi Military Industries signs warships JV with Spain's Navantia
DUBAI, July 19 (Reuters) - State-owned Saudi Arabian
Military Industries (SAMI) signed an agreement with Spain's
Navantia to set up a joint venture in the kingdom to build five
warships, the state news agency SPA reported on Thursday.
The deal is part of a wider framework agreed in April by
Spain and Saudi Arabia for Spanish state-owned shipbuilder
Navantia to supply warships to the Gulf Arab state under a deal
estimated to be worth around 1.8 billion euros ($2.2 billion).
SPA said the agreement between SAMI and Navantia was for the
design and construction of five Avante 2200 Corvettes under a
programme that would start this autumn, with the last unit due
to be delivered by 2022. It gave no value for the deal.
The agreement with Navantia will generate 6,000 jobs over
the five years, the statement said, including 1,100 direct jobs.
SAMI said the joint venture would "localize more than 60
percent of ships combat systems works", including installation
Saudi Arabia's top sovereign wealth fund, the Public
Investment Fund (PIF), launched SAMI last year as part of a
government plan to diversify the economy, reduce reliance on oil
export revenues and create jobs.
SAMI aims to contribute more than 14 billion riyals ($3.7
billion) to the country's gross domestic product by 2030,
according to SPA.
(Reporting By Aziz El Yaakoubi; editing by Emelia
© 2018 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.