Saudi Arabia is in talks with Leonardo to expand their collaboration by localizing the production of helicopter components.
Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar Alkhorayef, and Leonardo Chairman Stefano Pontecorvo met in Milan to discuss a deal to support manufacturing aircraft structures, propellers, and advanced electronic flight systems.
The partnership would also include developing capabilities in maintenance and repair service, as well as producing spare parts for engines, drones, and navigation systems.
Leonardo has been working in Saudi Arabia for more than four decades, supplying fighter aircraft, avionics, surveillance, naval, and space systems, among others.
The latest initiative aligns with Riyadh’s Vision 2030 to diversify the economy and reduce dependence on oil by boosting local industries.
Saudi Arabia Defense Vision
Saudi Arabia aims to localize 50 percent of its military expenditures as part of its economic plan to boost domestic manufacturing and enhance security.
This is part of the country’s plan to boost the private sector’s contribution to Saudi’s GDP by 65 percent.
Riyadh’s defense expenditures increased significantly in the past decade, jumping from $54.4 billion in 2020 to $71.7 billion in 2024.
This is also due to the country’s role in the Yemen war, with rights groups calling for investigations over possible war crimes that allegedly involve weapon supplier companies, including Italian Leonardo.