Boeing Signs Defense And Commercial Deals With Saudi Arabia

Boeing Co signed defense and commercial deals with Saudi Arabia; the deals include selling military as well as passenger aircraft.

The deal

The company announced this decision on Sunday during Trump’s visit to the kingdom.

The agreement involves Saudi Arabia buying Chinook helicopters in addition to related maintenance services and steered weapons systems. The kingdom’s intentions are to also buy P-8 surveillance aircraft.

In December, the U.S State Department declared its plans to vend Saudi Arabia CH-47F Chinook jets and associated training, equipment and support at $3.51bn.

Last year, Congress knew that a sale to Saudi Arabia would include 48 of the helicopters.

The deal’s objectives

These deals are the first step for Saudi Arabia in it plan to expand the kingdom’s economy beyond the oil business. The kingdom desires to fight the Yemen’s war and to end Iran’s dominance over Yemen.

The entire deals’ value is still unrevealed. The deals between Boeing and Saudi Arabia are the latest business agreements that are worth $10bn, signed between U.S. and Saudi firms since Trump’s arrival to Riyadh on Saturday.

“These announcements reaffirm our commitment to the economic growth, prosperity and national security of both Saudi Arabia and the United States, helping to create or sustain thousands of jobs in our two countries,” Dennis Muilenburg, Boeing Chief Executive Officer, said.

Other potential deals

Boeing also announced the potential of negotiating to sell around 16 large airplanes to Saudi Gulf Airlines, based in east in Dammam.

Boeing will also make a deal with Saudi Arabia to offer “sustainment services for a wide range of military platforms,” including non-Boeing supplied tools. Another separate business arrangement would “provide support for both military and commercial helicopters.”

The Saudi Rotorcraft Support Center lately got its commercial certificate and will probable start operations soon. The center is a business deal with Saudi Aerospace Engineering Industries and Boeing, Alsalam Aerospace Industries.