MAKEEN, DESMI Sign Deal to Localize Marine Systems in Saudi Arabia

The Saudi Engines Manufacturing Company (MAKEEN) signed a strategic distribution agreement with the Danish firm DESMI on April 14, 2025, at its headquarters in Dhahran. The agreement aims to localize the manufacturing of DESMI’s marine systems in the Kingdom, strengthen domestic distribution networks, and enhance Saudi Arabia’s industrial capabilities in line with national efforts to boost local manufacturing, innovation, and technological advancement. The signing ceremony was attended by senior officials from both companies and represents a significant step forward in Saudi Arabia’s marine sector development.

This partnership underscores the Kingdom’s commitment to diversifying its economy and fostering international collaborations that bring advanced technologies and expertise to Saudi shores. By localizing the production of marine systems, MAKEEN and DESMI are set to create new opportunities for Saudi workers, engineers, and businesses, while also reducing reliance on imports and enhancing the resilience of the national supply chain. The agreement aligns with the broader goals of Saudi Vision 2030, which seeks to transform the Kingdom into a global investment powerhouse and a hub for innovation and industry. As Saudi Arabia continues to expand its maritime capabilities, collaborations like this one are expected to play a crucial role in driving sustainable growth and technological self-sufficiency.

Context and Background

What does it take for a nation to build a world-class marine industry from the ground up? For Saudi Arabia, the answer lies in strategic partnerships that combine local ambition with global expertise. The Saudi Engines Manufacturing Company (MAKEEN), a subsidiary of the Saudi Arabian Military Industries (SAMI), was established to localize the manufacturing of engines and marine systems, reducing the Kingdom’s dependence on foreign suppliers and creating a robust domestic industrial base. MAKEEN’s mandate is closely tied to Vision 2030, which aims to increase local content in the defense and industrial sectors to 50% by 2030.

DESMI, a Danish company founded in 1834, is a global leader in the development and manufacture of pumps, pumping solutions, and environmental equipment for the marine, oil and gas, and industrial sectors. With a strong presence in over 100 countries, DESMI brings decades of engineering excellence and innovative technologies to the partnership. The agreement signed in Dhahran marks a significant milestone in MAKEEN’s efforts to localize advanced marine technologies, as it will enable the Saudi company to manufacture DESMI’s marine systems locally, ensuring that Saudi Arabia can meet its growing maritime needs with homegrown solutions. This collaboration is also expected to facilitate knowledge transfer and skill development among Saudi engineers and technicians.

The timing of this agreement is particularly important as Saudi Arabia accelerates its maritime infrastructure projects, including the development of NEOM, the Red Sea Project, and other giga-projects that require advanced marine systems for desalination, water treatment, and offshore operations. By localizing the production of these critical components, MAKEEN and DESMI are not only supporting these projects but also positioning Saudi Arabia as a regional hub for marine technology and manufacturing. The partnership reflects the Kingdom’s broader strategy to attract foreign investment, foster innovation, and build a sustainable industrial ecosystem that can compete on a global scale.

Key Details of the Agreement

What exactly does this agreement entail, and how will it transform Saudi Arabia’s marine sector? The strategic distribution agreement between MAKEEN and DESMI covers the localization of manufacturing for a range of DESMI’s marine systems, including pumps, pumping stations, and environmental solutions used in ships, ports, and offshore platforms. Under the terms of the agreement, MAKEEN will establish a dedicated production line at its facilities in Dhahran, leveraging DESMI’s proprietary technology and engineering support. This will enable MAKEEN to produce high-quality marine systems that meet international standards and are tailored to the specific needs of the Saudi market.

Chairman of MAKEEN’s Board of Directors Sulaiman Al-Babtain highlighted the significance of this strategic partnership, describing it as a pivotal step in advancing the Kingdom’s marine sector. He noted that the collaboration will empower MAKEEN to localize advanced industrial technologies, foster industrial innovation, and deliver world-class solutions that align with the Kingdom’s vision for sustainable development. Al-Babtain also emphasized that the agreement will create new job opportunities for Saudi nationals, enhance local content, and contribute to the growth of the national economy.

In addition to manufacturing, the agreement includes provisions for training and development programs to upskill Saudi engineers and technicians in the latest marine technologies. DESMI will provide technical expertise and support to ensure that the localized production meets the highest quality and safety standards. The partnership also encompasses distribution rights, allowing MAKEEN to market and distribute DESMI’s marine systems across the Kingdom and potentially in neighboring markets. This comprehensive approach is designed to maximize the benefits of the collaboration and ensure its long-term success.

International and Regional Impact

How will this agreement influence Saudi Arabia’s position on the global stage and its relations with international partners? The MAKEEN-DESMI partnership is a clear signal that Saudi Arabia is open for business and committed to fostering international collaborations that bring mutual benefits. By partnering with a renowned Danish company, MAKEEN is not only accessing cutting-edge technology but also strengthening ties between Saudi Arabia and Denmark, two nations with a shared interest in innovation and sustainable development. This agreement could pave the way for further collaborations between Saudi and Danish companies in other sectors, such as renewable energy, shipping, and environmental technology.

Regionally, the localization of marine systems manufacturing will enhance Saudi Arabia’s self-sufficiency and reduce its reliance on imports, which is particularly important given the Kingdom’s strategic location and its ambitions to become a global logistics and maritime hub. The agreement supports the objectives of the National Industrial Development and Logistics Program (NIDLP), one of the Vision 2030 realization programs, which aims to transform Saudi Arabia into a leading industrial power and logistics hub. By producing marine systems locally, MAKEEN will be better positioned to serve the growing demand from Saudi ports, shipyards, and offshore facilities, while also contributing to the resilience of the national supply chain.

Furthermore, the partnership aligns with Saudi Arabia’s efforts to diversify its economy away from oil and create new high-value industries. The marine sector is a key component of the Kingdom’s non-oil economy, and localizing the manufacturing of marine systems will create a ripple effect across related industries, including steel, electronics, and engineering services. This, in turn, will generate employment opportunities and foster the development of a skilled workforce, which is essential for the sustainable growth of the Saudi economy.

Economic and Strategic Significance

What are the economic and strategic benefits of localizing marine systems manufacturing for Saudi Arabia? The agreement between MAKEEN and DESMI is expected to have a significant positive impact on the Saudi economy by reducing import costs, increasing local content, and creating jobs. According to estimates by the Ministry of Industry and Mineral Resources, localizing the manufacturing of marine systems could save the Kingdom millions of riyals annually in foreign currency outflows and contribute to the growth of the non-oil GDP. Additionally, the partnership will enhance the competitiveness of Saudi products in regional and global markets, as MAKEEN will be able to offer DESMI’s marine systems at competitive prices with the added advantage of local production.

Strategically, the localization of marine systems manufacturing is a critical step towards achieving self-reliance in a sector that is vital to national security and economic prosperity. Marine systems are used in a wide range of applications, from naval vessels and commercial ships to desalination plants and offshore oil platforms. By building domestic capacity to produce these systems, Saudi Arabia can ensure that it has reliable access to essential equipment and spare parts, even in times of global supply chain disruptions. This is particularly important given the Kingdom’s ambitious plans to expand its maritime infrastructure and become a leading player in the global maritime industry.

Moreover, the agreement is a testament to the attractiveness of Saudi Arabia as an investment destination and the effectiveness of the Kingdom’s economic reforms. The partnership between MAKEEN and DESMI demonstrates that international companies are willing to invest in Saudi Arabia and transfer technology, which is a key objective of Vision 2030. By fostering such collaborations, the Kingdom is building a knowledge-based economy that can compete globally and provide opportunities for its citizens.

Vision 2030 Alignment

How does the MAKEEN-DESMI agreement contribute to the realization of Saudi Vision 2030? Vision 2030 is a comprehensive plan to diversify the Saudi economy, reduce dependence on oil, and develop public service sectors such as health, education, infrastructure, recreation, and tourism. A key pillar of Vision 2030 is the localization of industries and the transfer of knowledge and technology to Saudi Arabia. The agreement between MAKEEN and DESMI directly supports this pillar by localizing the manufacturing of advanced marine systems, which will create jobs, enhance local content, and foster innovation.

Furthermore, the partnership aligns with the goals of the National Industrial Development and Logistics Program (NIDLP), which aims to make Saudi Arabia a leading industrial power and logistics hub. By localizing the production of marine systems, MAKEEN is contributing to the development of a robust industrial base that can support the Kingdom’s maritime ambitions and drive economic growth. The agreement also supports the objectives of the Saudi Arabian Military Industries (SAMI) to localize 50% of military spending by 2030, as marine systems are essential for naval defense and security.

In conclusion, the strategic distribution agreement between MAKEEN and DESMI is a landmark achievement that underscores Saudi Arabia’s commitment to industrial localization, innovation, and international collaboration. As the Kingdom continues to pursue its Vision 2030 goals, partnerships like this one will play a vital role in building a prosperous and sustainable future for all Saudis. By localizing the manufacturing of marine systems, MAKEEN and DESMI are not only enhancing Saudi Arabia’s industrial capabilities but also contributing to the Kingdom’s emergence as a global leader in the marine sector.

20 Questions

Q1. What is the Saudi Engines Manufacturing Company (MAKEEN)?

A1. MAKEEN is a Saudi company established to localize the manufacturing of engines and marine systems, reducing dependence on foreign suppliers and supporting the Kingdom’s industrial base in line with Vision 2030.

Q2. Who is DESMI?

A2. DESMI is a Danish company founded in 1834, specializing in pumps, pumping solutions, and environmental equipment for marine, oil and gas, and industrial sectors, with operations in over 100 countries.

Q3. What was the purpose of the agreement signed on April 14, 2025?

A3. The agreement aims to localize the manufacturing of DESMI’s marine systems in Saudi Arabia, strengthen domestic distribution networks, and enhance the Kingdom’s industrial capabilities.

Q4. Where was the agreement signed?

A4. The agreement was signed at MAKEEN’s headquarters in Dhahran, Saudi Arabia.

Q5. Who is Sulaiman Al-Babtain?

A5. Sulaiman Al-Babtain is the Chairman of MAKEEN’s Board of Directors, who highlighted the partnership as a pivotal step in advancing the Kingdom’s marine sector.

Q6. What are marine systems?

A6. Marine systems include pumps, pumping stations, and environmental solutions used in ships, ports, and offshore platforms for various maritime and industrial applications.

Q7. How does this agreement support Saudi Vision 2030?

A7. It supports Vision 2030 by localizing advanced technologies, creating jobs, enhancing local content, and contributing to economic diversification and industrial development.

Q8. What benefits will MAKEEN gain from this partnership?

A8. MAKEEN will gain access to DESMI’s proprietary technology, enabling local production of high-quality marine systems, knowledge transfer, and distribution rights across the Kingdom.

Q9. What benefits will DESMI gain from this partnership?

A9. DESMI will expand its market presence in Saudi Arabia, contribute to local manufacturing, and strengthen its ties with a key player in the Middle East’s maritime sector.

Q10. Will this agreement create jobs for Saudis?

A10. Yes, the agreement is expected to create new job opportunities for Saudi nationals in manufacturing, engineering, and technical roles, supporting the Kingdom’s workforce development goals.

Q11. What training programs are included in the agreement?

A11. The agreement includes provisions for training and development programs to upskill Saudi engineers and technicians in the latest marine technologies, with technical support from DESMI.

Q12. How does this agreement impact Saudi Arabia’s maritime industry?

A12. It enhances self-sufficiency, reduces import reliance, and positions Saudi Arabia as a regional hub for marine technology and manufacturing, supporting giga-projects like NEOM and the Red Sea Project.

Q13. What is the National Industrial Development and Logistics Program (NIDLP)?

A13. NIDLP is a Vision 2030 realization program that aims to transform Saudi Arabia into a leading industrial power and logistics hub, supporting sectors like manufacturing, mining, energy, and logistics.

Q14. How does this agreement contribute to local content?

A14. By localizing the manufacturing of marine systems, the agreement increases local content in the industrial sector, aligning with the goal to raise local content to 50% by 2030.

Q15. What is the expected economic impact of this agreement?

A15. It is expected to save foreign currency, boost non-oil GDP, create jobs, and enhance the competitiveness of Saudi products in regional and global markets.

Q16. Will MAKEEN distribute DESMI products outside Saudi Arabia?

A16. The agreement includes distribution rights for MAKEEN to market and distribute DESMI’s marine systems across the Kingdom and potentially in neighboring markets.

Q17. How does this agreement align with Saudi Arabia’s defense objectives?

A17. It supports the localization goals of Saudi Arabian Military Industries (SAMI) to localize 50% of military spending by 2030, as marine systems are essential for naval defense.

Q18. What role does innovation play in this partnership?

A18. Innovation is central, as the partnership fosters industrial innovation, technology transfer, and the development of world-class solutions tailored to Saudi Arabia’s needs.

Q19. How does this agreement strengthen Saudi-Danish relations?

A19. It strengthens bilateral ties by promoting economic cooperation, technology exchange, and mutual investment between Saudi Arabia and Denmark, opening doors for further collaborations.

Q20. What are the long-term prospects of this partnership?

A20. The partnership is expected to grow, with potential expansion into new areas, increased production capacity, and further localization of advanced marine technologies, supporting Saudi Arabia’s sustainable development.