Hanwha Enters Defense Cooperation MOU with Saudi Arabia

Hanwha Aerospace and Hanwha Systems have entered into a memorandum of understanding (MOU) for defense industry cooperation with the Saudi Ministry of National Defense, as announced during the 'World Defense Show 2024 in Riyadh, Saudi Arabia.

Hanwha said in a statement on February 13 that the signing ceremony, which took place on the 8th, involved Hanwha Aerospace executive Kim Young-don and Saudi Arabian Minister of National Defense Abdullah bin Bandar Al Saud. The Saudi National Defense Ministry, distinct from the Ministry of Defense, is responsible for safeguarding territory and borders, managing security, and protecting the royal family and Islamic holy sites.

Hanwha's participation in the MOU signifies its commitment to engaging in various defense acquisition projects, including ground weapon systems such as armored vehicles, as well as robots and surveillance and reconnaissance systems. The collaboration aims to align with Saudi Arabia's 'Vision 2030,' which seeks to foster the defense industry and expand cooperation with Hanwha over the mid- to long-term.

Saudi Arabia, ranking fifth globally in military spending in 2022 with a budget of $75 billion (approximately 100 trillion won), is actively pursuing the development of its defense sector. This initiative accounts for 7.4% of the country's GDP, making it the second-largest military spending in the world after Ukraine, according to the Stockholm International Peace Research Institute (SIPRI).

As part of the MOU, Hanwha expressed its intention to contribute to Saudi Arabia's security while supporting the local defense industry's industrialization. The collaboration also aims to achieve the ambitious goal of producing 50% of military supplies locally by 2030.