Saudi Arabia will now build these Rolls-Royce engines locally
RIYADH — Saudi Arabia is preparing to manufacture Rolls-Royce high-speed engines locally for the first time after the British engineering group signed a licensing agreement that brings production of its mtu Series 2000 marine engines into the Kingdom.
Rolls-Royce Power Systems and Saudi Engines Manufacturing Company, known as MAKEEN, signed an Individual License Agreement allowing the Saudi company to manufacture and assemble the engines domestically. Rolls-Royce says the agreement makes it the first high-speed engine manufacturer to license local production in Saudi Arabia.
The deal is significant because Saudi Arabia is seeking to move beyond purchasing advanced foreign equipment towards developing the domestic industrial capacity to manufacture, maintain and support critical technologies under its Vision 2030 economic diversification programme.
The initial agreement covers mtu Series 2000 engines for marine applications, with locally produced engines expected to support projects including high-speed ferries, coast guard vessels and patrol boats. Rolls-Royce says rail applications are expected to follow.
The engines form part of Rolls-Royce Power Systems’ portfolio of high-speed propulsion technology used across marine, industrial, rail and defence applications.
The latest agreement did not emerge from a new relationship. Rolls-Royce and MAKEEN signed a Framework License Agreement in November 2023 establishing the legal and commercial basis for localisation of mtu products in Saudi Arabia. The new licence moves that arrangement towards actual manufacturing capability for the Series 2000 platform.
MAKEEN itself reflects Saudi Arabia’s industrial localisation strategy. The company was formed through a partnership involving Saudi Aramco, South Korea’s HD Hyundai and Saudi Arabian Industrial Investments Company, known as Dussur. It specialises in manufacturing, servicing and lifecycle support for marine and land-based engines and equipment.
For Saudi Arabia, the value of the Rolls-Royce agreement therefore extends beyond assembling engines. Establishing local production creates an opportunity to build domestic technical expertise, manufacturing capacity and a supporting supply chain around equipment used in strategically important transport and maritime sectors.
Andreas Görtz, president of the Mobile and Sustainable Solutions business unit at Rolls-Royce Power Systems, said the agreement would combine mtu technology with Saudi manufacturing capabilities as the Kingdom invests heavily in industrial development, infrastructure and energy projects.
MAKEEN chief executive Fawaz Al-Thubaiti said the partnership would also contribute to skills development and provide a foundation for future industrial growth.
There are, however, important details still to come. Rolls-Royce has not disclosed the investment required for the Saudi production programme, planned annual manufacturing capacity, expected number of jobs or a date for the first locally produced engine.
Those figures will ultimately help determine the scale of the industrial impact.
Rolls-Royce has operated in Saudi Arabia since the 1960s and already supplies technologies used across aviation, marine and land applications. The new agreement changes part of that relationship by placing manufacturing capability inside the Kingdom rather than limiting Saudi Arabia to being a customer and service market.
For Vision 2030, that distinction is central to Saudi Arabia’s wider economic strategy: attracting international technology while ensuring a greater share of the manufacturing, skills and economic value associated with it remains inside the country.
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