Hanwha Aerospace Establishes Saudi Subsidiary to Expand Middle East Defense Business
The South Korean defense company has created a wholly owned unit in Riyadh as it pursues weapons contracts and local manufacturing partnerships across Saudi Arabia and the United Arab Emirates.
Hanwha Aerospace has established a wholly owned subsidiary in Saudi Arabia, strengthening its local presence as the South Korean defense company pursues weapons contracts and manufacturing partnerships across the Middle East.
The Riyadh-based entity was established in the first half of 2026, according to industry sources. It is separate from the regional headquarters Hanwha Aerospace opened in September 2025 to oversee existing operations and identify opportunities in the Middle East and North Africa.
A company official said the new subsidiary would help Hanwha respond more quickly to local demand as the region becomes increasingly important to its defense business. The specific scope of the unit's operations remains under review.
Hanwha is marketing a portfolio that includes the K9 self-propelled howitzer, K239 Chunmoo multiple rocket launcher, Redback infantry fighting vehicle and L-SAM long-range surface-to-air missile system. The products give the company exposure to both ground-force modernization and air-defense spending in regional markets.
Saudi Arabia's Ministry of the National Guard is pursuing a large-scale modernization of its ground weapons, creating potential opportunities for the K9 and Chunmoo. The program is estimated to be worth about 15 trillion won, or roughly $11 billion. The establishment of a dedicated Saudi entity could help Hanwha engage more directly with local requirements as the procurement process develops.
The company is also expanding its activities in the United Arab Emirates. Hanwha recently reached an agreement on key terms with UAE state-owned defense group EDGE for an integrated air-defense system. The companies plan to discuss a local joint venture and phased manufacturing in the UAE.
The UAE is developing an integrated air-defense architecture involving the Cheongung-II medium-range surface-to-air missile system, the longer-range L-SAM and the Chunmoo launcher. Hanwha's talks with local partners indicate that its regional strategy extends beyond direct exports to include production and industrial cooperation.
That approach was also reflected in an agreement signed in June with UAE defense company Generation5 Holdings to cooperate on the local production and sale of K9 howitzers.
For Hanwha Aerospace, the Saudi subsidiary adds an operating base in one of the region's largest defense markets while complementing its UAE partnerships. The next test will be whether a stronger local footprint translates into contracts and durable manufacturing arrangements as Middle Eastern governments invest in defense modernization and domestic industrial capacity.