US-Saudi Venture Builds Long-Range Attack Drone Factory Near Riyadh

A joint venture between a US defense startup and a Saudi firm is building a drone manufacturing facility near Riyadh to produce long-range attack drones modeled on Iran’s Shahed system, according to a Semafor exclusive report.

The facility is being developed by SR2Vector, a partnership between Utah-based Vector Defense and Saudi startup SR2 Defense Systems. It will manufacture a one-way attack drone known as SKYWASP, designed for strike missions at ranges of up to 1,500 kilometers.

The project reflects growing Gulf interest in domestically produced strike capabilities following years of Iranian drone and missile attacks across the region.

“SKYWASP is a program that can level the playing field and boost Saudi Arabia’s deterrence capabilities,” Lucien Zeigler, chief strategy officer and co-founder of SR2, told Semafor.

Zeigler did not disclose production targets, but said the facility would generate “operationally relevant volumes consistent with the kingdom’s strategic deterrence requirements.” He also declined to provide a timeline for production or the size of the investment. The system will be produced for both Saudi Arabia’s domestic use and potential export to allied countries.

The SKYWASP program comes as Gulf states accelerate efforts to localize defense manufacturing, with Saudi Arabia aiming to produce 50% of its military procurement domestically by 2030. The country remains one of the world’s largest defense importers but has increasingly pushed for industrial self-sufficiency.

Iran’s Shahed drones have become a central concern for Gulf defense planners, offering a low-cost, high-volume strike capability that has been used extensively in regional conflicts. The relatively low cost of such systems has prompted efforts to develop comparable platforms capable of sustaining long-range, attritional warfare.