Brazilian and Saudi Defense Companies Eye Joint Ventures, Technology Transfers

Brazilian industry association FIESP said several Brazilian and Saudi defense companies have signed agreements that could lead to joint ventures and technology-sharing agreements.

The Saudi businesses involved in the potential effort are Scopa Defense and Alqahtani Holding, and the Brazilian firms are weapon manufacturer Taurus, rocket and missile maker Avibras, aircraft battery producer Ocellott, and aviation specialist Avionics Services, Defense News reported.

The signing took place last week during a bilateral investment forum attended by a Saudi delegation to Brazil led by Minister of Investment Khalid Al-Falih. The meeting, held in São Paulo by FIESP, also included the vice president of Brazil and the governor of São Paulo.

The Saudi minister mentioned Embraer in a speech during the event, but no other details were disclosed.

Taurus will evaluate building of a factory to manufacture light weapons in Saudi Arabia for a year.

Scopa, which is a part of Ajlan and Bros Holding Group, made an agreement with Avibras to “manufacture and develop advanced defense equipment,” according to the former, which did not disclose further information about the products and potential contract values involved.

Alqahtani Holding agreed to create a joint venture with Ocellott, a firm specializing in aeronautical batteries, radiofrequency filters and electrical surge suppressors. It’s unclear what the arrangement involves.

The former will also collaborate with Brazil’s Avionics Services that supplies radars and equipment for aircraft, including to Embraer for the Legacy series as well as the Phenom 100 and 300 jets. The company is currently testing a drone. Details of this agreement were also not disclosed.

For Saudi Arabia, these agreements are part of a larger strategy, dubbed Saudi Vision 2030, which aims to reduce the kingdom’s dependence on the oil trade through global investments in other sectors.