U.S. defense contractor Lockheed Martin has entered into agreements with Saudi Arabian companies for the manufacturing of components for its Terminal High Altitude Area Defense (THAAD) system. The move comes amid ongoing military operations in the Middle East, particularly against Iran-backed groups.
Lockheed Martin stated that these sub-contracts will contribute to enhancing manufacturing capabilities in Saudi Arabia and transferring expertise to bolster the country’s defense industry. The announcement was made during the World Defense Show in Riyadh, where state-owned Saudi Arabian Military Industries (SAMI) signed a total of 11 agreements, according to the country’s state news agency.
The agreements mark a strategic effort to strengthen Saudi Arabia’s defense capabilities and promote self-sufficiency in the production of crucial defense systems. By involving local entities, Lockheed Martin aims to foster a collaborative environment that supports the growth of the defense industry within the Kingdom.
This development coincides with heightened tensions in the region, as evidenced by recent military actions. The United States and Britain conducted attacks on 36 Houthi targets in Yemen, responding to a deadly attack on U.S. troops in Jordan by Tehran-backed groups in Iraq and Syria.
The strategic importance of the Red Sea route is underscored by the suspension of transit by some shipping companies to avoid potential attacks by Yemen’s Iran-backed Houthi group.
Despite regional tensions, the Biden administration continues to support the Saudi acquisition of the THAAD system, initially approved in 2017 to counter ballistic missile threats. Lockheed Martin’s prime partners in these sub-contracts include the Middle East Propulsion Company (MEPC) and Arabian International Company (AIC) for Steel. This collaboration is expected to have a lasting impact on Saudi Arabia’s defense capabilities and its role in the regional security landscape.