Saudi Arabia Signs 10 Defense Contracts Worth $1.8B To Improve Army Capabilities

The Kingdom of Saudi Arabia on Tuesday announced it has signed 10 contracts worth $1.8 billion with local and international companies during the third day of the World Defense Show in Riyadh.

The state news agency (SPA) reported that the Saudi Ministry of Defense signed the contracts with local and international companies to support the armed forces’ capabilities and raise combat effectiveness.

The largest contract is worth approximately $800 million, and it was signed with the South Korean conglomerate Hanwha to strengthen the Kingdom’s defense capabilities and supply chains.

The agreement was signed by Saudi’s Assistant Defense Minister for Executive Affairs Dr. Khaled Al-Biyari and President of Defense Sector in Hanwha Retired Lieutenant General Yung Kwan.

Moreover, the ministry also signed three contracts worth $453 million with Saudi Arabia’s Alsalam Aerospace Industries and a contract worth $106 million with GDC Middle East, a Saudi company that specializes in aerospace engineering, the outlet added.

Three other contracts were signed with a Chinese corporation and a South Korean company to secure various types of ammunition to the Kingdom’s General Department of Weapons and Explosives.

The first one, worth $114 million was signed with China’s Norinco (China North Industries Corporation Limited), while the other two, worth $122 million, were signed with South Korea’s Poongsan Corporation.

Speaking in the signing ceremony, Dr. Al-Biyari said that these contracts, which were signed upon the directives of Saudi Arabia’s Crown Prince and Minister of Defense Mohammed bin Salman, were aimed at strengthening the armed forces and to localize military industries.

“These contracts with local and international companies represent the ambitious vision of the leadership in the Kingdom, which strives to support and enhance the capabilities of the armed forces, develop their capabilities, improve their efficiency and readiness,” Dr. Al-Biyari added.

Saudi Arabia’s first World Defense Show opened to the public on Sunday and will conclude on Wednesday.

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