Local Manufacturing Shake-Up: How Saudi Arabia's New Defense Deal Could Change Everything!

Bluffdale, Utah and Riyadh, Saudi Arabia — March 16, 2026

In a significant step aimed at bolstering regional defense capabilities, **Vector**, a defense technology company based in **Bluffdale, Utah**, has signed a **Memorandum of Understanding (MoU)** with Saudi Arabia's **SR2 Defense Systems**. This agreement seeks to explore the localized manufacturing, assembly, and sustainment of Vector’s **attritable defense systems** within the Kingdom. The collaboration marks a pivotal moment for Saudi Arabia, positioning it as a regional hub for advanced defense production while enabling more rapid deployment of cost-effective U.S. systems across the Gulf.

Among the systems that could be manufactured locally is the **Hammer F1**, a recently unveiled foldable quadcopter designed for frontline operators. The Hammer F1 is characterized as an **attritable system**, meaning it is affordable and expendable. It integrates modular camera packages and supports the **Android Tactical Assault Kit (ATAK)**, as well as precision strike capabilities within a compact, portable platform. With speeds reaching up to **97 mph** and operational ranges of **25 kilometers**, it allows military units to combine reconnaissance and kinetic functions, providing both tactical flexibility and cost-effective coverage against low-cost drone threats.

“Warfighters didn’t just inform this system; they built it with us,” said **Andy Yakulis**, CEO and Co-Founder of Vector. “The Hammer F1’s modular design and rapid deployability are the types of capabilities we plan to scale in Saudi Arabia, directly supporting allied readiness and regional deterrence.”

The signing of the MoU, which took place during the **2026 World Defense Show** in Riyadh, was attended by Yakulis and **Idris Al-Zakari**, CEO of **Science Technology for Investment and Industrial Development, SR2 Defense Systems**. The agreement sets a collaborative framework across various domains, including technical, industrial, regulatory, and commercial sectors. Localized production not only enhances operational readiness but also aims to reduce reliance on global supply chains. Additionally, it supports Saudi Arabia's **Vision 2030** goal of achieving **50% defense production localization by 2030**.

“SR2 is committed to expanding Saudi Arabia’s defense industrial capabilities,” stated Al-Zakari. “Vector brings best-in-class U.S. technology that strengthens both local capabilities and allied security in critical times.”

The **World Defense Show** is recognized as one of the leading defense exhibitions globally, held biennially in Riyadh under the patronage of the Saudi monarchy. The third edition of the event took place from **February 8-12, 2026**, featuring **773 exhibitors** and welcoming **441 official delegations** from **116 countries**, with over **106,000 trade visitors**. This platform facilitated deals worth **26 billion Saudi Riyals**, underscoring Saudi Arabia’s strategic role in the global defense landscape.

During the show, the partnership between Vector and SR2 Defense Systems was solidified, emphasizing the Kingdom’s increasing significance as a hub for advanced defense production. In a complementary move, Vector also partnered with **REDSALT DEFENSE** to enhance its regional presence, focusing on system integration, long-term capability development, and operational deployment across Saudi Arabia and the Gulf.

**Lucien Zeigler**, co-founder of SR2 Defense Systems and CEO of REDSALT DEFENSE, brings substantial experience in fostering U.S.-Saudi defense collaborations. In **November 2025**, he co-launched SR2 as Saudi Arabia's first private-sector joint venture dedicated to localizing advanced U.S. defense technology. This initiative is foundational for supporting Saudi Vision 2030 and building a future-ready national defense workforce.

Key takeaways from this agreement include:

• Localized production of Vector’s attritable systems, particularly the Hammer F1 quadcopters, in Saudi Arabia.
• Modular, rapidly deployable systems that mitigate the cost asymmetry posed by low-cost adversary drones. This allows U.S. and allied forces to address drone threats without the financial burden of deploying high-value platforms.
• Support for Saudi Vision 2030's defense localization target of 50% by 2030.
• Strengthened operational readiness and supply chain resilience for U.S. and Gulf allies.

By integrating battlefield-tested platforms like the Hammer F1 with local manufacturing, the partnership between **Vector** and **SR2 Defense Systems** signifies a strategic shift in U.S.-Saudi defense cooperation. It embodies a blend of technology, industrial capability, and tactical readiness, reflecting a coordinated effort that is increasingly essential in today’s complex geopolitical landscape.

For more information, visit tfvector.com.