Boeing and Saudi Arabia Sign New Deals
Boeing announced Sunday that it signed several commercial and defense deals with Gulf Region leader Saudi Arabia that includes the sale of passenger and military aircraft. The deals were signed during the visit to the kingdom made over the weekend by U.S. President Donald Trump.
This announcement is the most recent of billions of dollars in new deals signed between Saudi and U.S. firms since Trump arrived Saturday in Riyadh.
Boeing announced that Saudi Arabia agreed to purchase Chinook helicopters, guided weapons systems and associated support services and it intends to acquire the surveillance aircraft P-8.
The full value of all the deals or the number of aircraft that the kingdom intends to purchase was not released in the prepared statement that announced the deals.
A spokesperson for Boeing did not reply to a request for comments beyond the prepared statement released. The State Department in Washington announced plans last December to sell Chinook cargo helicopters to Saudi Arabia as well as related equipment, support and training for $3.5 billion.
Saudi Arabia wants closer commercial and defense ties with the U.S. as it looks to develop its economy beyond only oil and is the leader of a coalition fighting in Yemen.
The announcements are a reaffirming of the commitment to growth in the economy, national security and prosperity, helping create and or sustain jobs in both the U.S. and Saudi Arabia, said Dennis Muilenburg the CEO at Boeing through a prepared statement.
Boeing said as well that it would negotiate a sale for as many as 16 wide body aircraft to air carrier Saudi Gulf Airlines based in Dammaam in eastern Saudi Arabia.
Boeing did not release the name of the aircraft that was involved in the negotiations to sell to the Saudi Gulf a privately owned airline that began its operations in 2016.
Boeing will establish as well a new joint venture with the kingdom to provide services for the sustainment of a number of military platforms, said the prepared statement, while another and separate joint venture will provide support for both commercial and military helicopters.
The U.S. and Saudi Arabia are close allies in the Middle East and the ties between the two appear as if they are becoming closer under the leadership of current president Donald Trump.