Boeing Co. and Lockheed Martin Corp. stand to gain significantly from the new arms deal agreed to on Saturday by the United States and the Kingdom of Saudi Arabia, a broad agreement that may be worth over $350 billion over 10 years.
Boeing did not project its revenues from the deal, but detailed agreements for defense and commercial aircraft products that will be included. These include orders for Chinook helicopters and associated support services; P-8 maritime patrol, and reconnaissance aircraft based on the Boeing 737 platform; and a joint venture with the Kingdom to provide maintenance for various military aircraft programs.
Also, SaudiGulf Airlines agreed to negotiate terms for up to 16 Boeing wide-body commercial jets.
“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,” stated Boeing chairman, president and CEO Dennis Muilenburg.
Lockheed projected it will draw over $28 billion in revenues from the deal, including project for integrated air-and-missile defense, combat ship, tactical aircraft, and rotary wing aircraft and programs. In detail, Lockheed said it had finalized a letter of intent with Taqnia (a technology development and investment company owned by the Kingdom) to jointly perform final assembly of up to 150 S-70 Black Hawk utility helicopters.
Also, Lockheed entered memo of understanding with Saudi Arabian Military Industries to cooperate to build defense capabilities in KSA, supporting the nation’s Vision 2030 economic diversification program, and to promote localization efforts associated with multi-mission surface combatants and aerostats.
"We are especially proud of how our broad portfolio of advanced global security products and technologies will enhance national security in Saudi Arabia, strengthen the cause of peace in the region, and provide the foundation for job creation and economic prosperity in the U.S. and in the Kingdom,” commented Lockheed Martin chairman, president and CEO Marillyn Hewson.