Saudi Arabia is reportedly adopting Iran’s Shahed drone model as a reference in a significant shift in its defence strategy, as Gulf tensions continue to rise following repeated drone and missile attacks in the region. The Kingdom is moving ahead with a major initiative to strengthen its indigenous drone production capabilities.
According to reports, a new joint venture named SR2 Vector has been formed between US-based defence startup Vector Defense and Saudi Arabia’s SR2 Defense Systems. The partnership aims to establish a manufacturing facility near Riyadh for producing long-range attack drones.
The proposed drones, branded “SkyWasp,” are designed for one-way strike missions similar to Iran’s Shahed drones, which have been widely used in regional conflicts. The systems are expected to have an operational range of up to 1,500 kilometres, enabling them to reach distant strategic targets.
Officials associated with the project said the initiative is intended to significantly enhance Saudi Arabia’s defensive and offensive capabilities amid growing security concerns. However, details regarding investment size, production timelines, and operational deployment remain undisclosed. The drones are expected to be supplied for domestic use as well as to allied nations.
The development comes as Gulf countries report increasing drone and missile attacks on energy infrastructure, hotels, and data centres. Analysts note that Iran’s low-cost Shahed drones, priced at around $35,000 each, have created a cost imbalance in modern warfare, pushing regional powers to invest in more affordable drone-based defence systems. Saudi Arabia, a leading global defence spender, aims to localise nearly 50 per cent of its military production by 2030 under its long-term defence modernization strategy.