In a strategic move aimed at enhancing local capabilities in the defense industries sector, Saudi Chemical Holding Company announced that its subsidiary, Saudi Chemical Company Limited (SCCL), signed a memorandum of understanding with Turkish Mechanical and Chemical Industry Corporation (MKE). This significant signing took place on the sidelines of the World Defense Show 2024, hosted by the Saudi capital, Riyadh, a leading global platform for showcasing the latest defense and security technologies.
Context of the agreement and the goals of Vision 2030
This memorandum comes within the framework of the Kingdom of Saudi Arabia's ongoing efforts to achieve the goals of Vision 2030 , which prioritizes the localization of military industries. The Vision aims to localize more than 50% of military spending by 2030, contributing to the diversification of the national economy away from oil dependency, creating quality job opportunities for citizens, and building an integrated and sustainable defense and industrial system. This cooperation with a leading international partner like Turkey represents a qualitative leap in the transfer of advanced technology and knowledge to the Kingdom.
The importance of the partnership and its expected impact
The memorandum of understanding primarily aims to explore opportunities for joint cooperation in the development and manufacturing of advanced materials and specialty chemicals used in the munitions industry. This partnership is expected to have multiple positive impacts at the local and regional levels
- At the local level, the partnership will contribute to establishing a sophisticated industrial base for producing strategic materials that were previously entirely imported, thus enhancing the Kingdom's national security and reducing dependence on foreign suppliers. It will also support local innovation through the exchange of technical and technological expertise between Saudi and Turkish experts.
- At the regional level, this cooperation reflects the depth of the growing strategic relationship between the Kingdom of Saudi Arabia and the Republic of Turkey, two pivotal countries in the region. This convergence in the defense industries sector strengthens joint coordination and opens new avenues for cooperation in other areas.
The Turkish Mechanical and Chemical Industry Corporation (MKE) is one of Turkey's oldest state-owned enterprises with a long history of producing various types of weapons, ammunition, and defense equipment, making it an ideal partner for the Saudi Chemical Company, a leading producer of explosives for both civilian and military uses in the Kingdom. Through this integration, both parties aim to maximize the benefits of their combined expertise to support the defense supply chain in both countries.
