GAMI has announced the signing of a localization agreement with Middle East Propulsion Company and US-based Honeywell to localize, develop and transfer capabilities

The General Authority for Military Industries (GAMI) has announced the signing of a localization agreement with Middle East Propulsion Company (MEPC) and US-based Honeywell.

The agreement aims to localize, develop and transfer capabilities for repair and overhaul of AGT1500 engines, improving the operational readiness and the response time of TAT engines, increasing field service response and technical support, as well as creating high-skilled job opportunities for Saudis.

The signing of the agreement at the MEPC headquarters in Riyadh was attended by Eng. Gasem Abdulghani Al-Maimani, GAMI’s Deputy Governor for the Military Industries Sector, Eng. Abdullah bin Ali Al-Omari, CEO of MEPC, and Eng. Yazeed Al-Kahtani, General Manager, Saudi Arabia & Bahrain at Honeywell Defense & Space.

“The signing of this agreement will contribute to the localization of the sector in the Kingdom and will accelerate business continuity, transfer of technology and knowledge, utilization and development of existing capabilities and support for local content,” GAMI’s Deputy Governor Al-Maimani said. He also added that the agreement would create job opportunities in a number of fields, including the repair, overhaul and development of engines.

Under the agreement, the transfer and localization of repair and overhaul capabilities is expected to be completed by the end of 2022. Al-Maimani also noted, “This is in line with our ambition to localize over 50% of the Kingdom’s spending on military equipment and services by 2030. Enhancing the sector’s strategic independence and increasing local content is a key step towards building a sustainable military industries sector.”

The CEO of MEPC, Al-Omari said, “Honeywell’s selection of MEPC as a technical partner in the Kingdom aims to build a relationship based on partnership and integration. The main goal of the partnership is to achieve the strategic objectives related to enhancing and developing the Kingdom’s military Industry sector capabilities, as well as the continuous cooperation and coordination between the two companies on all issues of common interest. In addition, we extend our thanks to GAMI for its constant and tireless empowerment, on all projects and programs, aimed at localizing military industries in the Kingdom.

“The repair and overhaul agreement with MEPC for the AGT1500 engines will help to strengthen local capabilities in developing and maintaining the engines,” said James Schaan, senior director, Defense and Space, EMEAI, Honeywell Aerospace. “Saudi Arabia is an important market for us, and we remain deeply committed to helping the country achieve its Saudi 2030 vision. Our partners including MEPC can leverage our technology expertise and global supply chain network to strengthen their local defense capabilities.”

GAMI is continuously working with local and international partners to enhance the process of localization in the sector, in line with the Kingdom’s vision to localize more than 50% of military spending by 2030. The Kingdom’s National Military Industries Sector Strategy aims to raise strategic independence and readiness in defense and security, enhance cooperation between military and security entities, increase transparency, and ensure spending efficiency.

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