RIYADH, SAUDI ARABIA — May 25, 2026 : A joint venture between a United States defense startup and a Saudi Arabian defense company will establish a manufacturing facility near Riyadh to produce long-range combat drones modeled on Iran’s Shahed system. The partnership, named SR2Vector, will manufacture the SKYWASP one-way attack drone for Saudi Arabia’s military requirements and exports to allied countries.
The venture brings together Utah-based Vector Defense and Saudi startup SR2 Defense Systems. The project is part of Saudi Arabia’s efforts to expand local defense manufacturing and increase domestic military production.
SKYWASP Drone
The SKYWASP is an attritable one-way attack drone developed by Vector Defense. The drone has a range of up to 1,500 kilometers (930 miles), covering roughly the distance from northeastern Saudi Arabia to Tehran, Iran.
According to SR2 Defense Systems, the drone is intended for long-range strike operations and cost-effective deployment. Lucien Zeigler, chief strategy officer and co-founder of SR2 Defense Systems, said the facility will produce drones in “operationally relevant volumes” aligned with Saudi Arabia’s deterrence requirements.
Iranian Shahed drones are estimated to cost between $20,000 and $50,000, while interceptor systems used against them are significantly more expensive. The project aims to support local production of lower-cost attritable drone systems.
Vision 2030 and Local Manufacturing
The project aligns with Saudi Arabia’s Vision 2030 programme, which aims to localize 50 percent of military spending by 2030.
The Riyadh facility will support local manufacturing, assembly, sustainment, and production of unmanned aerial systems in Saudi Arabia. The project also supports Saudi efforts to reduce dependence on foreign defense manufacturing.
The partnership was formalized during the World Defense Show 2026 in Riyadh, where Andy Yakulis, chief executive officer of Vector Defense, and Idris Al-Zakari, chief executive officer of SR2 Defense Systems, signed a memorandum of understanding for cooperation in drone production and industrial development.
SR2 Defense Systems and Funding
SR2 Defense Systems, established in November 2025 as a U.S.-Saudi joint venture, was co-founded by Idris Al-Zakari of Science Technology for Investment and Industrial Development and Lucien Zeigler of REDSALT Defense.
The project will receive financial backing from MASNA Ventures, a defense-technology fund supporting U.S.-Saudi defense cooperation and industrial projects.
Vector Defense recently secured a $20 million loan from JPMorgan Chase to expand manufacturing in the United States. The Saudi facility is part of the company’s broader production expansion plans.
U.S.-Saudi Defense Cooperation
The project comes amid expanding defense ties between Washington and Riyadh. In November 2025, Saudi Arabia was designated a major non-NATO ally of the United States during a meeting between Saudi Crown Prince Mohammed bin Salman and President Donald Trump at the White House.
No timeline for factory completion or production volume has been announced. The project follows earlier cooperation between Vector Defense and SR2 Defense Systems announced in March 2026 for localization of attritable unmanned defense systems in Saudi Arabia.
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