May 22 (UPI) -- Raytheon is entering into a strategic partnership with the Saudi Arabia Military Industries Company for technology development and defense-related projects.
The partnership comes under a memorandum of understanding signed Saturday in Riyadh and witnessed by Saudi King Salman bin Abdulaziz Al Saud, and visiting U.S. President Donald J. Trump.
"This strategic partnership is the next step in our over 50-year relationship in the Kingdom of Saudi Arabia and a strong indicator of our continued global growth," said Thomas A. Kennedy, Raytheon chairman and chief executive officer. "By working together, we can help build world-class defense and cyber capabilities in the Kingdom of Saudi Arabia."
As part of the deal, Raytheon plans to establish a wholly owned subsidiary in the country -- Raytheon Arabia, that will implement programs to create indigenous defense, aerospace and security capabilities. Among subsidiary functions will be in-country program management and development of supply and sourcing capabilities.
Raytheon said it is expected that Raytheon Arabia activities will positively impact the economies of both countries and lead to job creation in both. They would also continue worldwide growth in the areas of air defense systems, smart munitions, C4I systems and defense system cybersecurity.
President Trump was in Saudi Arabia at the start of his first foreign trip while in office and announced more than $1 billion in U.S. defense business deals with the kingdom.