South Korean defense firm Hanwha Aerospace has recently launched Hanwha Defense Arabia, a fully owned subsidiary, in Riyadh, Saudi Arabia. This move, reported by the Korea Herald, was established in the first half of 2026 as part of the company’s strategic push to secure defense contracts across the Middle East.
Expansion Strategy in Riyadh
Hanwha Defense Arabia operates independently from Hanwha Aerospace’s regional headquarters, which was established in September 2025. This headquarters is tasked with overseeing current operations and exploring new business ventures within the Middle East and North Africa. A spokesperson from Hanwha Aerospace emphasized that the newly formed subsidiary will allow for quicker responses to local demands, reflecting the growing importance of the Middle Eastern market to their defense initiatives. While operational details are still in development, the move signifies a commitment to strengthen the company’s presence in the region.
Focus on Regional Defense Projects
Hanwha Aerospace is actively promoting several advanced military systems in the Middle East, including the K9 self-propelled howitzer, the K239 Chunmoo multiple launch rocket system, the Redback infantry fighting vehicle, and the L-SAM long-range surface-to-air missile system. Their strategy involves not just highlighting these products but also entering into partnerships that will enhance their operational capacity within the region. Recently, in the United Arab Emirates, Hanwha Aerospace secured a deal with the state-owned company EDGE to collaborate on an integrated air defense system, with plans for a joint venture and potential phased production in the UAE.
Additionally, they have reached an agreement with Emirati firm Generation5 Holdings for the local production and distribution of K9 howitzers, further solidifying their foothold in the Gulf defense market. These collaborations are critical as they align with the defense modernization goals of various nations within the region.
Anticipated Growth in Saudi Defense Sector
Saudi Arabia’s Ministry of National Guard is gearing up for a significant modernization of its ground weaponry, amplifying expectations for potential exports of Hanwha’s K9 and Chunmoo systems. The scale of this project is estimated to be around 15 trillion won, or approximately $11 billion, highlighting the immense opportunity for Hanwha Aerospace. This modernization effort not only aligns with Saudi Arabia’s military goals but also positions Hanwha as a key player in the defense landscape of the Middle East.
In summary, with the establishment of Hanwha Defense Arabia in Riyadh and the advancing discussions of high-value defense projects, Hanwha Aerospace is strategically positioning itself to tap into the rising demand for military technology in this vital region. As they continue to build partnerships and develop their offerings, they are set to play a prominent role in shaping the future of defense in the Middle East.