Saudi Arabia's Eram Holdings and top Indian defence electronics major Bharat Electronics Limited (BEL), today (February 15) officially announced a strategic collaboration aimed at significantly advancing the localisation and co-development of defence and aerospace technologies within the kingdom.
A diversified global conglomerate with a strong presence in Saudi Arabia and the GCC, Eram operates across multiple strategic verticals, including power electronics manufacturing in KSA. It prides itself on supporting localisation initiatives and establishing joint ventures with internationally-reputed companies.
BEL is a Navratna public sector undertaking (PSU) under the Indian Ministry of Defence. It is a multi-product, multi-technology company engaged, in the design, development, manufacture, life cycle support of advanced electronic products and systems for the Army, Navy, and Air Force.
The MoU, inked on the sidelines of the World Defence Show (WDS) 2026, a landmark event showcasing global defence innovation, envisages and envisions both companies' joint pursuit of opportunities for manufacturing, marketing and sales in Saudi Arabia.
The core objective is to achieve significant value addition and military localisation, specifically by facilitating compliance with the Industrial Participation Policy issued by the Saudi General Authority for Military Industries (GAMI), which aims to localise a minimum of 50% of military equipment spending.
Main focus areas of the collaboration
The MoU establishes a framework for co-operation across several critical areas. These are:
•Localisation and Manufacturing: Meeting regional demands through technology transfer, joint Research & Development (R&D), new product development, and contract manufacturing of niche and critical systems, including those for Land, Naval, and Airborne platforms.
•Project Support: Providing comprehensive installation, system integration, commissioning, aftersales, spares and maintenance support for BEL systems sold in the region.
•Power Electronics: Leveraging Eram Power Electronics Company (EPEC), Saudi Arabia, as a strategic partner to develop custom products for enabling BEL's localisation requirements and for executing projects as a system integrator.
On the strategic deal, Dr. Siddeek Ahmed, the Chairman and Managing Director, Eram Holdings, said it represents a monumental step forward for the company and for Saudi Arabia's defence industrial base.
"Our collaboration is fully aligned with Vision 2030, transforming the defence sector by building indigenous capabilities and intellectual property within the kingdom," he stated.
Ambitious targets set under Saudi Vision 2030
"By bringing BEL's proven technological expertise into a joint framework, we are not only supporting GAMI's localisation mandate but are also ensuring that the stakeholders have immediate, localised access to state-of-the-art defence and aerospace solutions. This agreement will serve as a catalyst for local job creation, skills development, and innovation across our respective fields," he added.
KV Suresh Kumar, Director (Marketing), BEL, said: "We are glad to partner in this landmark venture that underscores our commitment to strategic international collaboration. We recognise the criticality of the GAMI's localisation mandate and the ambitious targets set under Saudi Vision 2030."
"This partnership is specifically structured to address those requirements head-on, ensuring that our advanced defence technologies and manufacturing expertise are transitioned to and localised within the kingdom," he noted.
"By establishing a robust in-country supply chain, joint development programmes, and maintenance support infrastructure, we are not just exporting equipment—we aim to build a sustainable, sovereign defense industry capability in Saudi Arabia," he added.-TradeArabia News Service