Hanwha Partners with Saudi Ministry of National Defense for Defense Industry Cooperation

by Oh Hyungil

Published 13 Feb.2024 10:10(KST)

Hanwha defense companies have established cooperative relationships to respond to the geopolitical crisis in Saudi Arabia and the Middle East and to foster the local defense industry.

Hanwha Aerospace and Hanwha Systems announced on the 13th that they signed a tripartite memorandum of understanding (MOU) for defense cooperation with the Saudi National Defense Ministry on the 8th during the defense exhibition "World Defense Show 2024" held in Riyadh, Saudi Arabia.

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The signing ceremony was attended by Kim Young-don, an executive of Hanwha Aerospace, and Abdullah bin Bandar Al Saud, Minister of the Saudi National Defense Ministry, among others. The Saudi National Defense Ministry is an organization established to protect territory and borders, maintain public order, and safeguard the royal family and Islamic holy sites, and it is a separate government agency from the Ministry of Defense.

Hanwha plans to participate in the National Defense Ministry’s mid- to long-term acquisition plans across various fields, from ground weapon systems such as armored vehicles to surveillance and reconnaissance systems utilizing robots and satellites. They will also expand cooperation with Saudi Arabia, which aims to produce 50% of military supplies locally by 2030 to foster the defense industry.

According to the Stockholm International Peace Research Institute (SIPRI), Saudi Arabia ranked fifth in military spending in 2022, spending $75 billion (approximately 100 trillion KRW), following the United States, China, Russia, and India. This accounts for 7.4% of its gross domestic product (GDP), making it the second largest in the world after Ukraine.

A Hanwha official stated, "We will contribute not only to the security of Saudi Arabia but also to industrialization through the development of the defense industry, and firmly establish a strategic cooperative relationship in the mid to long term."