RIYADH: Saudi Arabian Military Industries, an affiliate of the Public Investment Fund, has signed an agreement with Saudi Advanced Industries Co. to acquire its stake in Al-Salam Aerospace Industries Co. According to a statement to the Saudi Stock Exchange, SAIC will sell its 10 percent stake in the military and civil aviation maintenance solution provider to SAMI. “The value will be determined upon completion of the calculation of the partners’ own obligations according to the terms of the agreement,” stated SAIC in the bourse filing, adding that the book value of its share in the aviation maintenance solution provider stands at SR19.52 million ($5.20 million). It said the deal’s financial impact will appear during the fiscal year 2023. The decision to exit transpired because of losses exceeding the company’s capital, high obligations, and the challenges of supporting the firm from the partners. SAIC’s exit aligns with the company’s strategy to enhance its performance by continuously reviewing investments and pursuing promising opportunities with growth and returns. Additionally, the company is divesting from investments that have successfully achieved their goals or failed to meet expectations. SAMI has been scouting for opportunities to enhance the Saudi defense sector. In October, the company signed two deals worth SR664 million with the General Authority for Defense Development to support the sector’s growth over the next four years. The agreements indicated that SAMI would partner with national defense development centers and Saudi universities to meet the requirements of defense and security authorities and connect them to companies that would manufacture their designs. Faleh bin Abdullah Al-Sulaiman, governor of the authority, noted that the contracts were the first in a series of programs to help stimulate the Kingdom’s defense sector. He emphasized the importance of investing in national universities with specialized departments in this field. SAMI CEO Walid Abukhaled also affirmed the company’s role in localizing defense industries, in line with Saudi Vision 2030. The contracts also outlined investment in developing communication systems, surveillance and counter-drone technology.