Hanwha Aerospace has established a wholly owned subsidiary in Saudi Arabia as the South Korean defense company steps up efforts to win weapons contracts across the Middle East.
Industry sources said Wednesday that Hanhwa Defense Arabia was established in Riyadh in the first half of this year. The subsidiary is separate from Hanwha Aerospace's regional headquarters, which was set up in September 2025 to oversee existing operations and identify new business opportunities in the Middle East and North Africa.
A Hanwha Aerospace official said the new entity would allow the company to respond more quickly to local demand as the Middle East grows in importance to its defense business. Details of its operations are still under review.
Hanwha Aerospace is targeting the region with a portfolio including the K9 self-propelled howitzer, K239 Chunmoo multiple rocket launcher, Redback infantry fighting vehicle and Long-range Surface-to-Air Missile, or L-SAM.
In the United Arab Emirates, the company recently signed an agreement with state-owned defense company EDGE on key terms for an integrated air defense system. The two sides plan to discuss a local joint venture and phased manufacturing to the UAE.
The UAE is pursuing an integrated air defense system built around the Cheongung-II medium-range surface-to-air missile system, L-SAM and Chunmoo.
Saudi Arabia’s Ministry of the National Guard is also pursuing a large-scale modernization of its ground weapons, raising expectations for K9 and Chunmoo exports. The project is estimated at about 15 trillion won ($11 billion).
Hanwha Aerospace is also seeking to expand its manufacturing footprint in the region. It signed an agreement with UAE defense company Generation5 Holdings in June to cooperate on producing and selling K9 howitzers locally.
jyoungseon8@heraldcorp.com
