Saudi-US venture to build long-range attack drones in Riyadh amid Gulf security push: Report

A new Saudi-US defence partnership is setting up a factory near Riyadh to manufacture long-range combat drones modelled on Iran’s Shahed system, Semafor reported, as Gulf states accelerate military spending following months of regional conflict and cross-border attacks.

The facility is being developed by Vector Defense, a Utah-based defence startup, and Saudi startup SR2 Defense Systems through a joint venture called SR2Vector, the report said.

According to the report, the company plans to manufacture a one-way attack drone known as SKYWASP, which is designed to strike targets up to 1,500 kilometres away — roughly the distance between Saudi Arabia’s northeast coast and Tehran.

The companies did not disclose the size of the investment or provide a timeline for production.

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The venture plans to supply drones for both Saudi Arabia’s domestic military needs and exports to allied countries. The project will also be backed by MASNA Ventures, a defence-technology investment fund currently being raised by Zeigler.

The move comes as Gulf countries reassess their security strategies after months of missile and drone attacks linked to the conflict involving Iran, Israel and the United States. Since the outbreak of hostilities earlier this year, Iran has launched thousands of missiles and drones targeting Gulf states, according to the report.

While many of the projectiles were intercepted, some strikes damaged energy infrastructure, hotels and data centres across the region. Gulf casualties have reportedly remained limited, but the broader conflict has intensified concerns over regional air defence preparedness.

Iran’s Shahed drones have emerged as one of the country’s most widely used low-cost weapons platforms. Analysts estimate the drones cost roughly $35,000 each to manufacture — significantly cheaper than the sophisticated interceptor missiles used by Gulf states to neutralise them.

That cost imbalance has prompted regional governments to explore cheaper and more scalable drone and counter-drone systems, including partnerships with US and Ukrainian defence companies.

Saudi Arabia, one of the world’s largest military spenders, currently imports most of its defence hardware. Under Crown Prince Mohammed bin Salman’s Vision 2030 strategy, the kingdom aims to localise 50 per cent of its defence spending by the end of the decade.

The drone manufacturing project also reflects deepening defence ties between Saudi Arabia and the United States. Riyadh was designated a major non-NATO ally by Washington last year after Crown Prince Mohammed bin Salman met US President Donald Trump at the White House.

The proposed drone factory underscores how Gulf states are increasingly seeking to build indigenous defence industries while reducing reliance on foreign arms imports amid growing geopolitical instability across West Asia.