Saudi Arabia, France sign preliminary deal for naval joint venture

State-owned Saudi Arabian Military Industries (SAMI) and France’s Naval Group signed a memorandum of understanding (MoU) on Sunday to form a joint venture to produce and develop naval systems, Saudi Press Agency reported on Sunday.

The two companies plan to manufacture warships, frigates, and submarines in Saudi Arabia, Reuters reported quoting SAMI’s CEO Andreas Schwer.

SAMI, launched by Public Investment Fund (PIF) in 2017, will hold 51 percent of the joint venture.

“Through design, construction and maintenance activities, the joint venture will contribute significantly to further enhancing the capabilities and readiness of Royal Saudi Naval Forces,” Schwer said.