RIYADH: The Saudi General Authority for Competition (GAC) has given the green light to a joint venture between Saudi Arabian Industrial Investments (Dussur), Saudi Arabian Military Industries (SAMI), and French aerospace group Figeac Aéro.
The formal approval by the regulator follows an agreement between the companies, signed in June, to build a facility in the Kingdom to manufacture airframes, the Saudi Press Agency reported.
SAMI will own the majority of the shares in the new entity, which will manufacture metal components for both military and commercial aircraft.
The deal underlines the Saudi government's commitment to expanding the role of private sector investment and involvement in the development of the Kingdom’s infrastructure and public services.
GAC also approved a joint venture between Dussur, and South Korea’s Doosan Heavy Industries and Construction, along with Saudi Aramco Development (SADCO).
The JV will manufacture and supply metal castings and forgings for use for industrial use.
Dussur will own 70 percent of the JV, while SADCO and Doosan will hold 15 percent each.
The GAC has approved 10 joint projects this year.
Earlier this year the Kingdom passed its long awaited Privatisation Law, which formalized a formal legal framework for joint ventures and public private partnerships
The Privatisation Law is aimed at increasing private sector participation in infrastructure projects in Saudi Arabia and reduce government spending.
