KSA wants huge Naval deals but on the condition that 50% of the value of each contract is spent locally

[The SC]

“Tough Negotiations” European companies suffer from selling their products to Saudi Arabia..
The Kingdom requires spending 50% of the transaction value locally to transfer knowledge..

Naval Group presented the latest Belharra frigates to the Saudi Navy.. While the Italian Fincantieri has proposed an advanced version of the FREMM frigate..

The maritime sector was particularly prominent in WDS 2022. The Saudi Navy is heading for a complete modernization.. Expanding its capabilities after ordering four Lockheed Martin MMSC ships and five Navantia Avante-2200 corvettes,

The Navy still needed another 4-6 frigates or 5-8 large corvettes.. Therefore, major shipbuilders have offered their most advanced solutions, side by side with partnership proposals for local industry. In fact, under the concept of Vision 2030
The Kingdom's new offset policies state that 50% from the value of each contract must be spent locally..

In an effort to bring knowledge to Saudi Arabia and develop the national industry, It is no coincidence that Saudi Aramco, Sami and Saudi Scopa Groups announced multiple cooperation agreements that will bring the best defense technologies
to the Kingdom of Saudi Arabia..

Fincantieri has proposed a version of its FREMM frigates, but it can also rework its Zubarah-class ships, if Saudi Arabia needs
something smaller and less complex.

In the same segment, Naval Group promoted their latest design,. It is the multi-purpose frigate FDI / Belharra, and in the end
GOWIND 2500.. DESIGN..

Hyundai seeks to benefit from its agreements with Aramco to propose its own products such as the FFX-I / II / III frigates

The HDF-3500 and HDF-3800SA other proposals included DSME's DW-3000H..

And many frigate offers from the Chinese CSSC

The government is increasing budgets and has ambitions for the country..

When speaking to a variety of stakeholders, it is clear that Saudi Arabia is seen as one of the most popular markets
promising in the region, either directly or indirectly; In fact, Saudi political influence in the Middle East may act as a catalyst for the launch of a broader market in the region for those companies that are able to seize the opportunities to sell to Riyadh
The exhibition itself has the potential to become a staple and a new market in the coming years..

 

[waz]

View attachment 852242​

“Tough Negotiations” European companies suffer from selling their products to Saudi Arabia..
The Kingdom requires spending 50% of the transaction value locally to transfer knowledge..

Naval Group presented the latest Belharra frigates to the Saudi Navy.. While the Italian Fincantieri has proposed an advanced version of the FREMM frigate..

View attachment 852236

The maritime sector was particularly prominent in WDS 2022. The Saudi Navy is heading for a complete modernization.. Expanding its capabilities after ordering four Lockheed Martin MMSC ships and five Navantia Avante-2200 corvettes,

View attachment 852241

The Navy still needed another 4-6 frigates or 5-8 large corvettes.. Therefore, major shipbuilders have offered their most advanced solutions, side by side with partnership proposals for local industry. In fact, under the concept of Vision 2030
The Kingdom's new offset policies state that 50% from the value of each contract must be spent locally..

In an effort to bring knowledge to Saudi Arabia and develop the national industry, It is no coincidence that Saudi Aramco, Sami and Saudi Scopa Groups announced multiple cooperation agreements that will bring the best defense technologies
to the Kingdom of Saudi Arabia..

Fincantieri has proposed a version of its FREMM frigates, but it can also rework its Zubarah-class ships, if Saudi Arabia needs
something smaller and less complex.

View attachment 852245

In the same segment, Naval Group promoted their latest design,. It is the multi-purpose frigate FDI / Belharra, and in the end
GOWIND 2500.. DESIGN..

View attachment 852238

Hyundai seeks to benefit from its agreements with Aramco to propose its own products such as the FFX-I / II / III frigates

View attachment 852239

The HDF-3500 and HDF-3800SA other proposals included DSME's DW-3000H..

View attachment 852244

View attachment 852243


And many frigate offers from the Chinese CSSC

View attachment 852240

The government is increasing budgets and has ambitions for the country..

When speaking to a variety of stakeholders, it is clear that Saudi Arabia is seen as one of the most popular markets
promising in the region, either directly or indirectly; In fact, Saudi political influence in the Middle East may act as a catalyst for the launch of a broader market in the region for those companies that are able to seize the opportunities to sell to Riyadh
The exhibition itself has the potential to become a staple and a new market in the coming years..

China.

 

[The SC]

China.

It is present too..

 

[KediKesenFare3]

Türkiye to the rescue.

 

[Wergeland]

Saudi Arabia is doing the right thing here.

Should have been done from 50 years ago with every foreign weapon purchase. There would be a huge weapon manufacturing sector today.

Better late than never.

 

[waz]

Türkiye to the rescue.

Oh forgot Turkey yes indeed.

 

[alphapak]

China and Turkiye are the best options.

 

[Corruptistan]

Saudi Arabia is doing the right thing here.

Should have been done from 50 years ago with every foreign weapon purchase. There would be a huge weapon manufacturing sector today.

Better late than never.

I hear that often, not only about Saudi Arabia but many Muslim countries in general. I mean the idea that Muslim countries did not want to focus on hard sciences and domestic industries decades ago. They all wanted but vast majority (if not all) could not on a large scale until the past 2-3 decades.

Saudi Arabia have been doing great work in the past decade or so. Probably before that as well. It kicked off during the reign of King Abdullah. Nowadays Saudi Arabians are some of the most educated not only in the Muslim world but the world as a whole. In particular the women. You can't survive without it nowadays, the locals are competing with some of the brightest minds from across the Muslim world/West as well. What we have seen so far is only the very beginning and the Saudi Vision 2030 will give a good picture of which direction the country is truly going towards long-term. There is reason to be very optimistic as things stand right now IMO.

I don't think that it was possible or realistic to focus on indigenous tech as far back as 50 years ago. Too low a population, not strong enough local talent pool nor economy. Even though Saudi Arabia underwent gigantic changes and developments on all fronts in the 1960's and 1970's. It would have been a too big ask for them to also go all in on hard sciences given that no Muslim state was able to do so back then. Even more if you take the low domestic population into account, the economy and everything that I outlined above. I did not even mention the political climate back then such as the inter-Arab rivalry between secular Arab republics that wanted to abolish monarchies, the Cold War, Middle Eastern conflicts etc. Then you had the Grand Mosque Seizure in 1979 which kickstarted the Sahwa movement and that also had a huge say on the focus on hard sciences domestically. Often forgotten but very impactful for the worse in that aspect.

View attachment 852242​

“Tough Negotiations” European companies suffer from selling their products to Saudi Arabia..
The Kingdom requires spending 50% of the transaction value locally to transfer knowledge..

Naval Group presented the latest Belharra frigates to the Saudi Navy.. While the Italian Fincantieri has proposed an advanced version of the FREMM frigate..

View attachment 852236

The maritime sector was particularly prominent in WDS 2022. The Saudi Navy is heading for a complete modernization.. Expanding its capabilities after ordering four Lockheed Martin MMSC ships and five Navantia Avante-2200 corvettes,

View attachment 852241

The Navy still needed another 4-6 frigates or 5-8 large corvettes.. Therefore, major shipbuilders have offered their most advanced solutions, side by side with partnership proposals for local industry. In fact, under the concept of Vision 2030
The Kingdom's new offset policies state that 50% from the value of each contract must be spent locally..

In an effort to bring knowledge to Saudi Arabia and develop the national industry, It is no coincidence that Saudi Aramco, Sami and Saudi Scopa Groups announced multiple cooperation agreements that will bring the best defense technologies
to the Kingdom of Saudi Arabia..

Fincantieri has proposed a version of its FREMM frigates, but it can also rework its Zubarah-class ships, if Saudi Arabia needs
something smaller and less complex.

View attachment 852245

In the same segment, Naval Group promoted their latest design,. It is the multi-purpose frigate FDI / Belharra, and in the end
GOWIND 2500.. DESIGN..

View attachment 852238

Hyundai seeks to benefit from its agreements with Aramco to propose its own products such as the FFX-I / II / III frigates

View attachment 852239

The HDF-3500 and HDF-3800SA other proposals included DSME's DW-3000H..

View attachment 852244

View attachment 852243


And many frigate offers from the Chinese CSSC

View attachment 852240

The government is increasing budgets and has ambitions for the country..

When speaking to a variety of stakeholders, it is clear that Saudi Arabia is seen as one of the most popular markets
promising in the region, either directly or indirectly; In fact, Saudi political influence in the Middle East may act as a catalyst for the launch of a broader market in the region for those companies that are able to seize the opportunities to sell to Riyadh
The exhibition itself has the potential to become a staple and a new market in the coming years..

Saudi Arabia should go for the option which will have the greatest amount of tech transfer and local production (50% is a minimum as stated and state policy dictates that nowadays too), combined with the best overall tech, most secure option "politically" and which will have the best benefits down the road in terms of future cooperation and independence (no pressure from external sources - such as the USA for instance).

In that case China would be the preferred option IMO. This would also be in line with Saudi Arabia's strategic relationship with China which China already helping them with their domestic ballistic missile program, uranium mining, mineral mining, 5g network (Huawei), computer cloud and the 16 data centers (AliBaba), UAV's and other strategic projects. China is also their largest trade partner by far etc.

There was talk about nuclear reactors, not sure where China fits into this but if China does, you could really talk about some serious cooperation across almost all key fields.

I read some time ago that even Chinese (Mandarin) is supposed to become obligatory in Saudi Arabia.

Saudi Arabia to teach Mandarin in public schools

Language to be taught as elective in 8 schools in Riyadh, Jeddah, Eastern Province

gulfnews.com

A new era for the Chinese language in Saudi Arabia

JEDDAH: As one-fifth of the world’s population speaks Chinese, Saudi Arabia has joined a global community incorporating the Chinese language into its educational systems. It is believed that companies prefer to hire people who speak more than one language so the University of Jeddah made it...

www.arabnews.com

Remember, Saudi Arabia's navy is a bit underwhelming compared to their air force, land forces, missile force (offensive and defensive) etc. Which is a bit strange given the large coastline of Saudi Arabia (on two fronts even) and their enormous oil and gas reserves and mineral wealth as well as busy shipping ports and some of the most busy trade routes trespassing the country directly. Saudi Arabia borders 3 of the most busy sea trade routes in the world. All this requires a strong navy so this was long overdue. Moreover if you consider that Saudi Arabia is probably never leaving Yemen and I would not be surprised if the Sunni parts of Yemen (with direct access to the Arabian Sea) would join KSA (rich in resources and not too overly populated unlike Western Yemen = less of a burden) so another reason for a strong navy, but that is for another discussion.

 

[The SC]

I hear that often, not only about Saudi Arabia but many Muslim countries in general. I mean the idea that Muslim countries did not want to focus on hard sciences and domestic industries decades ago. They all wanted but vast majority (if not all) could not on a large scale until the past 2-3 decades.

Saudi Arabia have been doing great work in the past decade or so. Probably before that as well. It kicked off during the reign of King Abdullah. Nowadays Saudi Arabians are some of the most educated not only in the Muslim world but the world as a whole. In particular the women. You can't survive without it nowadays, the locals are competing with some of the brightest minds from across the Muslim world/West as well. What we have seen so far is only the very beginning and the Saudi Vision 2030 will give a good picture of which direction the country is truly going towards long-term. There is reason to be very optimistic as things stand right now IMO.

I don't think that it was possible or realistic to focus on indigenous tech as far back as 50 years ago. Too low a population, not strong enough local talent pool nor economy. Even though Saudi Arabia underwent gigantic changes and developments on all fronts in the 1960's and 1970's. It would have been a too big ask for them to also go all in on hard sciences given that no Muslim state was able to do so back then. Even more if yo tak the low domestic population into account, the economy and everything that I outlined above.



Saudi Arabia should go for the option which will have the greatest amount of tech transfer and local production (50% is a minimum as stated and state policy dictates that nowadays too), combined with the best overall tech, most secure option "politically" and which will have the best benefits down the road in terms of future cooperation and independence (no pressure from external sources - such as the USA for instance).

In that case China would be the preferred option IMO. This would also be in line with Saudi Arabia's strategic relationship with China which China already helping them with their domestic ballistic missile program, uranium mining, mineral mining, UAV's and other strategic projects. China is also their largest trade partner by far etc.

Remember, Saudi Arabia's navy is a bit underwhelming compared to their air force, land forces, missile force (offensive and defensive) etc. Which is a bit strange given the large coastline of Saudi Arabia (on two fronts even) and their enormous oil and gas reserves and mineral wealth as well as busy shipping ports and some of the most busy trade routes trespassing the country directly. Saudi Arabia borders 3 of the most busy sea trade routes in the world. All this requires a strong navy so this was long overdue. Moreover if you consider that Saudi Arabia is probably never leaving Yemen and I would not be surprised if the Sunni parts of Yemen (with direct access to the Arabian Sea) would join KSA (rich in resources and not too overly populated unlike Western Yemen = less of a burden) so another reason for a strong navy, but that is for another discussion.

I believe that what Saudi Arabia really lacks are advanced submarines..

Royal Saudi Naval Forces
Almost 21 000 Serve in the fleet and 4,000 soldiers in the Marines..
There is a huge and extensive naval infrastructure..

In the Saudi Naval Forces, the main pillars for measuring the development of the navies will be gathered, which are submarines - destroyers - stealth frigates - anti-submarine aircraft - helicopter carriers - jet aviation - advanced corvettes - air defense systems such as the Aster 30 and Aegis..

What is coming next to the Saudi Navy is wonderful in every sense of the word..

The new Korean frigate dedicated to Saudi Arabia "HDF-3800SA" has been announced, with a displacement of 3800 tons.

The frigate assigned to Saudi Arabia will be able to accommodate the MH-60R helicopter owned by the Saudi forces

The frigate will be able to perform anti-air, surface and anti-submarine warfare missions
and electronic warfare. The HDF-3800SA is based on the FFX Batch II (Daegu class) frigate.
which is currently in service with the Republic of Korea Navy (RoK).
Design improvements include the shape of the Hi-Bow body
Designed exclusively by Hyundai Marine Research Institute.
The frigate is made up of a complex of advanced Korean combat systems.

frigate armament

76mm “STRALES” (with guided ammunition) main gun, 16x K-VLS for K-SAAM, 2x Sylena Mk2 decoy launchers by Lacroix, 8x C-Star Korean anti-ship missiles, 2x triple torpedo launchers, 2x rockets launchers and a CIWS (on top of the helicopter hangar). The frigate can accommodate the new MH-60R helicopter of the Royal Saudi Navy. It is also fitted with a variable depth sonar..

Initially, it will be manufactured in the King Salman Complex for Maritime Industries
Because in their wing in the defense exhibition there is the same frigate..
It will be made by IMI, a Saudi company owned by Saudi Aramco, Lamprell plc, National Shipping Company and Hyundai Heavy Industries Ltd.

Aramco and Bahri own about 80% of the company, Hyundai 15%, Lamprell 5%,.

The Saudi version of the HDF-3800 frigate is the proposal submitted by Hyundai to the Saudi Navy's tender to purchase 5 frigates..

The memorandum of understanding between the Korean company and its strategic partner in Saudi Arabia, the International Company for Maritime Industries IMI, to cooperate in the manufacture of frigates, may give us a clear indication that they are the closest to winning the competition against the Spaniards and the French..

Naval News, which was a media partner to cover the exhibition, stated that one of the requirements of the tender is to invest 60% of the contract value in local Saudi companies..

According to the tender schedule, the contract will be signed in the second half of 2023 for five frigates with a displacement of 4000 tons, with a deal valued at 2 to 2.5 billion dollars..

Awesome news, the Navy explicitly needs a number of new frigates and ships
The Royal Navy has undergone an amazing transformation since the appointment of its new commander..

The Kingdom is also interested in the Spanish NS4K SMART 4000

Navantia @NavantiaOficial reintroduced the NS4K SMART 4000 stealth design as a unique design revolution in the world of military and future naval industries at #WDS2022 , attracting strong attention from the Saudi Naval Forces..

64 cells..

 

[The SC]

1st March 2018

Today, on a historic date for the Saudi industry and the Saudi armed forces represented by the Royal Saudi Naval Forces, it was announced that a huge industrial agreement was signed to manufacture and supply several ships and naval platforms for the Saudi Navy and with a 100% national industry. The agreement was represented by an industrial union composed of
1- Zamil Marine Advanced Industries Company.
2- Advanced Electronics Company AEC.
3- Saudi Defense Industries Company (SADEC).
4- The Saudi Company for Development and Technical Investment.. TAQNIA Technology.

The agreement is a building block of the development of the Saudi defense industry and the transfer of its responsibility to the private sector to create local sustainability and regional and international competition and empty the government sector to supervise the quality of projects and set specifications in line with the latest developments and Updates of the era.

In short: The products will be manufactured by Zamil in cooperation with Advanced Electronics Technology and SADEC.

1- HSI 32 boats.
Number 18
The delivery period for the entire project is 39 months.

2- COMBATTANTE FS56 class boats
Number to be made: 1 out of 3
Duration: 38 months

3- Corvette MILGEM-ADA *(This is possible again with Erdogan visit)
The number to be manufactured: 1 out of 5
Project duration 54 months

4- Corvette GOWIND 2500
The number to be manufactured locally: 3 out of 5
Duration: The first corvette is 40 months, the second is 39 months, and the third is 38 months.

Taqnia and Advanced Electronics Corporation (AEC) are participating in the MAIN MAST technology for GOWIND frigates

https://twitter.com/x/status/970027674285551616

5- Floating docks that will be manufactured locally, with a capacity of 700 tons
Number: 2
Duration: 39 months.

6- FLOATING PONTOON Marine buoys.
Quantity: 35
Duration: 36 months for the entire project in 3 installments

Zamil nationalized the Rolls-Royce engine industry and cooperated extensively with CMN..
All Ships will be completed (2020-2024)

 

[FuturePAF]

View attachment 852242​

“Tough Negotiations” European companies suffer from selling their products to Saudi Arabia..
The Kingdom requires spending 50% of the transaction value locally to transfer knowledge..

Naval Group presented the latest Belharra frigates to the Saudi Navy.. While the Italian Fincantieri has proposed an advanced version of the FREMM frigate..

View attachment 852236

The maritime sector was particularly prominent in WDS 2022. The Saudi Navy is heading for a complete modernization.. Expanding its capabilities after ordering four Lockheed Martin MMSC ships and five Navantia Avante-2200 corvettes,

View attachment 852241

The Navy still needed another 4-6 frigates or 5-8 large corvettes.. Therefore, major shipbuilders have offered their most advanced solutions, side by side with partnership proposals for local industry. In fact, under the concept of Vision 2030
The Kingdom's new offset policies state that 50% from the value of each contract must be spent locally..

In an effort to bring knowledge to Saudi Arabia and develop the national industry, It is no coincidence that Saudi Aramco, Sami and Saudi Scopa Groups announced multiple cooperation agreements that will bring the best defense technologies
to the Kingdom of Saudi Arabia..

Fincantieri has proposed a version of its FREMM frigates, but it can also rework its Zubarah-class ships, if Saudi Arabia needs
something smaller and less complex.

View attachment 852245

In the same segment, Naval Group promoted their latest design,. It is the multi-purpose frigate FDI / Belharra, and in the end
GOWIND 2500.. DESIGN..

View attachment 852238

Hyundai seeks to benefit from its agreements with Aramco to propose its own products such as the FFX-I / II / III frigates

View attachment 852239

The HDF-3500 and HDF-3800SA other proposals included DSME's DW-3000H..

View attachment 852244

View attachment 852243


And many frigate offers from the Chinese CSSC

View attachment 852240

The government is increasing budgets and has ambitions for the country..

When speaking to a variety of stakeholders, it is clear that Saudi Arabia is seen as one of the most popular markets
promising in the region, either directly or indirectly; In fact, Saudi political influence in the Middle East may act as a catalyst for the launch of a broader market in the region for those companies that are able to seize the opportunities to sell to Riyadh
The exhibition itself has the potential to become a staple and a new market in the coming years..

If Saudi Arabia could do in all industrial sectors, and build it in a place like NEOM; along trade routes, it would really place them in a good place to further diversify from oil.

The Saudis have to also be cautious to not be sucked into making the lower technology 50% of these ships. Acquiring modern propulsion technology will allow them to build their own systems down the road.

 

[The SC]

8 MMSC frigates

Martin Lockheed officials at the exhibition confirmed that the deal (4 + 4)

5 Gowind stealth Corvettes

5 Milgem stealth corvettes

5 Avante stealth Corvettes (already in sea trial)

3 FS-56 Combattante stealth missile boats

Not counting these mentioned above..The number of corvettes and frigates currently operating in the Saudi Navy is:

7 frigates
13 corvette and missile boat

4 Badr Corvettes

3 frigates Riyadh (Lafayette)

4 Madina frigates

9 Sadiq missile Boats

20 combat with two support ships Dorans and three minesweepers Sandwan .. 25 ships ..a fleet that is very meager compared to the size of Saudi Arabia.. but the best is still to come..supposed to be at least 50 naval combat ships..

 

[The SC]

If Saudi Arabia could do in all industrial sectors, and build it in a place like NEOM; along trade routes, it would really place them in a good place to further diversify from oil.

The Saudis have to also be cautious to not be sucked into making the lower technology 50% of these ships. Acquiring modern propulsion technology will allow them to build their own systems down the road.

Jan 7, 2022

Hyundai Heavy Industries announces the start of construction of a ship engine plant in Saudi Arabia

Establishing the JV’s plant, specialized in building engines, in the King Salman International Complex for Maritime Industries and Services.. The project is set to be completed by May 2022.

And:

In addition to the corvettes contract, Navantia agreed with SAMI (Saudi Arabian Military Industries) the creation of the joint venture SAMINavantia in Saudi Arabia. This alliance benefits NAVANTIA and SAMI, and allows boosting defence programmes in the Kingdom, reinforcing its economy. This joint venture is an exceptional opportunity for Navantia to position its integrated systems and technologically advanced solutions in the Arab market and its area of influence, perfectly aligned with the company’s internationalization strategy.

The design of the corvettes is state-of-the-art, incorporating SAMINavantia participation and joint developed products , such as the HAZEM combat system, HERMESYS integrated communications system, DORNA fire control system, the Integrated Platform Control System (IPMS) and the MINERVA integrated bridge, together with other equipment developed by Navantia under licence, such as the MTU engines and the RENK gearboxes.

All this is high tech..

 

[dBSPL]

Türkiye to the rescue.

The first ship was planned to launch in 9 months. The program would be completed in 54 months and the last ship would be completly built and launched by KSA's own shipyard. The deal cost was much less financially than the deal KSA made later with other competitor. If this process was successful, KSA could be designing its own unique frigate with its own means, just like Pakistan today.

Probably with Trump's pressure, this pre-agreement was broken. Because they tried to sell corvettes to KSA for $2 billion each.

 

[FuturePAF]

8 MMSC frigates

Martin Lockheed officials at the exhibition confirmed that the deal (4 + 4)

View attachment 852286

View attachment 852294

5 Gowind stealth Corvettes
View attachment 852287

5 Milgem stealth corvettes
View attachment 852288

5 Avante stealth Corvettes (already in sea trial)
View attachment 852289

3 FS-56 Combattante stealth missile boats
View attachment 852291

Not counting these mentioned above..The number of corvettes and frigates currently operating in the Saudi Navy is:

7 frigates
13 corvette and missile boat

4 Badr Corvettes

3 frigates Riyadh (Lafayette)

4 Madina frigates

9 Sadiq missile Boats

20 combat with two support ships Dorans and three minesweepers Sandwan .. 25 ships ..a fleet that is very meager compared to the size of Saudi Arabia.. but the best is still to come..supposed to be at least 50 naval combat ships..

View attachment 852296

View attachment 852297

The LCS aren’t considered worth keeping in the USN fleet; they are being dumped by the US navy in a couple of years. Why does the Saudi navy want them?