President Donald Trump and Saudi King Salman bin Abd al-Aziz Al Saud have signed a potential $110 billion package of weapons sales agreements in an effort to advance global security and economic development initiatives between the U.S. and Saudi Arabia.
The White House said Saturday Trump also inked a Joint Strategic Vision Statement with Salman to facilitate defense collaboration, fight violent extremism and counter terrorism financing efforts.
U.S. Secretary of State Rex Tillerson, Saudi Crown Prince Mohamed bin Nayef and Deputy Crown Prince Mohamed bin Salman joined Trump and Salman at the signing ceremony Saturday.
Saudi Arabia has announced plans to buy approximately $28 billion in air and missile defense platforms, tactical and rotary wing aircraft and combat ships from Lockheed Martin (NYSE: LMT), the company said Saturday.
The agreements include a letter of intent to establish a joint venture between Lockheed and Taqnia to support final assembly work on approximately 150 units of S-70 Black Hawk helicopters and a memorandum of understanding to advance collaboration between Lockheed and Saudi Arabian Military Industries to develop Multi-Mission Surface Combatant ships, aerostats and other defense platforms.
Marillyn Hewson, Lockheed chairman, president and CEO and inductee into Executive Mosaic’s Wash100 for 2017, said the agreements seek to support the Saudi government’s Vision 2030 initiative, build up regional security and advance job creation programs between the two countries.
Lockheed noted the agreements with Saudi government are expected to support at least 18,000 U.S. jobs.
The defense package also includes the procurement of Chinook helicopters, P-8 reconnaissance aircraft, guided weapon systems and related support services from Boeing (NYSE: BA).
Boeing said Sunday it will also form a joint venture with Saudi government to offer sustainment assistance for the Middle Eastern country’s military platforms and that it agreed with SaudiGulf Airlines to facilitate the sale of up to 16 airplanes.
A joint venture between Boeing, Saudia Aerospace Engineering Industries and Alsalam Aerospace Industries – Saudi Rotorcraft Support Co. – has received a commercial registration certificate from the Saudi government to provide support services for the country’s commercial and military helicopters.