The start of construction of five Avante 2200 corvettes for the Royal Saudi Naval Forces (RSNF) at Spain’s Navantia shipyard in early October marks the latest effort in creating a defence industrial base in the Kingdom and the promise of thousands of in-country jobs being created.

The product of a joint venture between Spain’s Navantia and Saudi Arabian Military Industries (SAMI), SAMI Navantia Naval Industries will manufacture five corvettes from the San Fernando shipyard and are due to be delivered by 2023.

It is intended that up to 6,000 jobs will be created throughout the duration of the programme, with many being a long-term position in Saudi Arabia itself. Systems integration for the fourth and fifth corvettes will be completed within Saudi Arabia itself, a further indication of the effort being undertaken by the Kingdom to develop an indigenous defence manufacturing and sustainment capability.

SAMI said that the joint venture agreement has the potential to boost Saudi’s technology capabilities by up to 60%. In addition to the construction of the vessels, the Avante 2200 project will encompass life cycle support for five years from the delivery of the first vessel, with an option for an additional five years.

SAMI Navantia Naval Industries (SAMINavantia), a joint venture between Saudi Arabian Military Industries (SAMI) and Navantia S.A., marked the launch of construction for the first of five Avante 2200 corvettes with an official keel-laying ceremony in Cadiz, Spain
Credit: SAMI website

The joint venture will provide combat system integration and ‎installation as part of a contract worth over €900mn signed at DSEI 2019 in London in September. It is also responsible for system engineering and architecture; hardware design; software ‎development, testing and verification; prototyping, simulation and modelling; and the delivery of logistical support and training programmes.

Andreas Schwer, CEO of Saudi Arabian Military Industries (SAMI), commented: ‘SAMI and Navantia will boost the local content through the creation of thousands of highly skilled jobs in Saudi Arabia, accelerate the transfer of technology, and contribute to the Kingdom’s goals of building the indigenous military and defence industries.’

Saudi Arabia has in recent years made strides towards ending its near-total reliance on western military equipment for its armed forces. In 2017 a multi-billion-dollar deal was signed with China aimed at boosting bilateral ties, which also included manufacturing rights for Chengdu Aircraft Industry Group’s Wing Loong drone.

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Saudi Arabia has a $70bn annual defence budget and a $30bn security-related budget from other ministries with the Saudi Defence sector expected to contribute US$61.6bn to the Kingdom’s GDP by 2020, according to a report by the US-Saudi Arabian Business Council released earlier this year.

According to the Council’s ‘Defense, Security, and Aerospace’ report, demand in the Saudi Arabian defence and security sector will expand at a compound annual growth rate (CAGR) of 1.48% through 2020 and at a CAGR of 1.71% over the next decade. By 2028, the public administration and defence sector will generate 2.52 million private-sector jobs within the Kingdom.