Rolls-Royce (LON: RR.) has become the first high-speed engine manufacturer to license local production in Saudi Arabia. Its Rolls-Royce Power Systems division, which makes mtu engines, signed an Individual License Agreement today with Saudi Engines Manufacturing Company (MAKEEN) covering mtu Series 2000 marine engines.
The agreement builds on a Framework License Agreement concluded in November 2023, which set the legal and commercial basis for industrial cooperation and for localising mtu products. The new deal enables local manufacturing and assembly of Series 2000 engines and supports the localisation goals of Saudi Vision 2030.
With the marine agreement in place, the partners can move ahead with initial local production capabilities for one of Power Systems’ proven high-speed engine platforms. The release describes it as expanding marine capabilities, with rail targeted to follow.
Andreas Görtz, President Business Unit Mobile & Sustainable at Rolls-Royce Power Systems, tied the deal to the Kingdom’s industrial push.
Saudi Arabia is investing heavily in industrial development, infrastructure and energy projects. This agreement allows us to combine proven mtu technology with local manufacturing capabilities and support the Kingdom’s ambition to build a strong domestic industrial base with advanced technology.
Andreas Görtz, Rolls-Royce Power Systems
MAKEEN is investing in manufacturing in Saudi Arabia to localise advanced technologies and strengthen domestic industrial capacity, in line with the Kingdom’s long-term aim of greater local participation across key sectors. Its chief executive, Fawaz Al-Thubaiti, said the partnership brings high-speed engine technology to the country and lays a base for local manufacturing, skills development and industrial growth.
The agreement opens opportunities for future marine and naval projects such as high-speed ferries, coast guard vessels and patrol boats. Rolls-Royce says it has had a growing presence in Saudi Arabia since the 1960s.
No financial terms, volumes, customers or timeline were disclosed, so the commercial value to Rolls-Royce cannot yet be measured. The partners will now focus on building the capabilities needed to support future customer projects and to expand the local industrial ecosystem.