Vector and SR2 Defense Systems Team Up to Scale Attritable Defense Manufacturing in Saudi Arabia, Strengthening U.S. and Allied Deterrence

Riyadh, Saudi Arabia — Vector, an American modern warfare-as-a-service company, today announced the signing of a Memorandum of Understanding (MoU) with Saudi Arabia’s SR2 Defense Systems to jointly explore opportunities for localized manufacturing, assembly, and sustainment of Vector systems in the Kingdom of Saudi Arabia. The agreement puts American attritable systems closer to the fight while positioning Saudi Arabia as an emerging regional center for advanced defense production.

As the security situation in the Middle East has deteriorated over the past few months, Vector and SR2 have intensified their joint commitment to enhancing U.S. and Saudi operational capabilities for allies across the region. Iran's recent retaliatory attacks across the Gulf on American facilities and soldiers have tragically exposed the urgency of increasing U.S. defense cooperation with Saudi Arabia. 

First brokered at the World Defense Show 2026 in Riyadh, the MoU was signed by Andy Yakulis, Chief Executive Officer of Vector, and Idris Alzakari, Chief Executive Officer of SR2 Defense Systems Saudi Arabia. The agreement establishes an aggressive framework for collaboration across technical, industrial, regulatory, and commercial requirements.

The conflict has thrown the cost asymmetry problem into sharp relief: Iranian Shahed drones range from $20,000 to $50,000 per unit, which dwarf the cost of conventional intercept solutions. Vector’s specialization in small, attritable systems closes that gap: by localizing production to Saudi Arabia, the company will field cost-effective systems, made in Saudi Arabia, that rebalance the ledger of Iran’s asymmetric campaign and directly support the Vision 2030 mandate to achieve 50% defense localization by 2030 through an emphasis on sovereign defense industrial capabilities. 

‍“We saw the need for increased U.S.-backed defense systems in Saudi Arabia early – Iran’s strikes on Saudi Arabia and across the region confirm the Vector-SR2 joint position in strengthening American and allied deterrence,” said Andy Yakulis, CEO and Co-Founder of Vector. “Vector builds systems to be modular, scalable, and deployable fast. That means we can get our products on the ground and in the fight today, and build the infrastructure to dominate future conflicts tomorrow. We are not standing on the sidelines; we’re running towards the fire.”‍

Critical for both American and Saudi interests, U.S. systems manufactured in the region will strengthen Gulf allies' capacity to respond to rapidly evolving threats and adversarial aggression. Localized manufacturing will further reduce dependence on disruption-prone global supply chains, ensuring critical capabilities remain available regardless of external pressure.

‍“This MoU reflects SR2’s strong interest in exploring advanced defense manufacturing opportunities that contribute to Saudi Arabia’s growing industrial base, and in crucial times like this, that has real impact and benefit for our American allies,” said Idris Alzakari, CEO of SR2 Defense Systems Saudi Arabia. “Vector represents best-in-class American capabilities and technology, and there’s never been a more important time to work toward establishing and sustaining these capabilities here in Saudi Arabia.”