Saudi Arabian Military Industries Company (Sami) and US-based Boeing have signed a joint venture agreement to localise more than 55 per cent of the maintenance and repair of fighter jets and helicopters within Saudi Arabia.

The agreement covers the transfer of technology to integrate weapons on these aircraft and the setting up of a supply chain for spare parts within the kingdom, according to a local media report.

The deal is understood to have been signed during  Saudi Arabia Crown Prince Mohammed bin Salman's visit to Boeing’s headquarters in Seattle as part of his recent US trip.

The ownership structure and value of the deal were not disclosed.

According to Andreas Schwer, Sami CEO, the deal will enable the company and Boeing to play a key role in leading and laying the foundational framework for Saudi Arabia’s defense sector industrialisation.

The joint venture is part of initiatives to explore opportunities to build a strong autonomous military industries ecosystem in the kingdom.