The JAIS 4×4 armored vehicle at NIMR booth during IDEX 2021 in Abu Dhabi (Exclusive Picture)

ABU DHABI: Saudi Arabian Military Industries (SAMI) and UAE-based Nimr teamed up to transfer armored vehicle production and technology to the kingdom in a move described as setting a regional precedent.

The two parties signed a teaming agreement on the second day of IDEX 2021 here, under which the original equipment manufacturer of JAIS 4×4 MRAP vehicles will work together exclusively to produce the armored vehicles locally in Saudi Arabia.

“This is a very important step that demonstrates a precedent,” Khaled Al Zaabi, chief commercial officer at Nimr, told me. “We’ve never had such industrial military collaboration (in the region) so this definitely cements us as a major global player.”

This agreement comes as part of Nimr’s strategic initiatives to develop the industrial capabilities in the markets, to serve two main purposes.

“First, this gives us the sovereign capability to be self-sufficient and rely on our own industry, Al Zaabi said. “Second, it helps develop the economical impact of the region through creating knowledge and diversifying our economies.”

When asked about how many will be built, Walid Abukhaled, CEO of SAMI, told me production is expected to start in the third quarter of 2021 and in small numbers: “Our long-term view will be around 4,000 vehicles as the armed forces demand will be high.”

“We always look for new opportunities that serve the region and our customers in the Kingdom,” Abukhaled said“We now live in an era where efficiency is key and partnerships like these will enable us to serve our customers better.”

Under this new collaboration, the Saudi military forces will be supplied with a state-of-the-art armored vehicle that has been thoroughly tested and evaluated by military experts in the kingdom. The Saudis aim to spend 50% of its military budget by 2030 on equipment made domestically.

JAIS 4×4 is the next generation of mine resistant, ambush protected vehicles, providing critical balance between firepower, survivability, and mobility for modern, conventional, and asymmetric operations. Crew survivability depends on a ‘crew citadel’ protection system that has demonstrated proven capabilities against mines, improvised explosive devices, and ballistic threats.

The move will also lead to the creation of new jobs and the transfer of several new technologies in line with the Vision 2030 objectives in the sector.

“We are committed to the transfer of services and localization as much as we can,” the CEO added, “through making sure that every contract signed contains 50% localization even if this is our target for 2030.”

NIMR –part of UAE-based EDGE Group – and SAMI have been negotiating the terms of a potential partnership for more than a year now.

“Fostering strategic relationships is a key pillar of EDGE’s strategy, and we look forward to building on this commitment with our colleagues at SAMI,” said Faisal Al Bannai, CEO and Managing Director of EDGE, adding that the agreement represents the first military collaboration between Saudi Arabia and the UAE and is a major step in boosting the already robust relations between the two nations.

To Nimr, this is a major initiative that cements the company as a major global player.

“There are so many aspects in development and supply chain capability within our countries that we can really complement one another in this specific industry,” Al Zaabi told me.

Nimr has been in the industry for 20 years allowing it to “gain high experience in developing vehicles but more importantly maturing these in-house capabilities,” Al Zaabi added. “When you focus on exports, you force yourself to be extremely competitive both on the technical and commercial sides which does not only make you focus on satisfying your local customers, but become more attractive to other countries.”