A new defense partnership between the United States and Saudi Arabia is establishing a drone manufacturing facility near Riyadh, focusing on long-range combat drones inspired by Iran's Shahed system. The joint venture, named SR2Vector, combines efforts from Utah-based Vector Defense and Saudi startup SR2 Defense Systems. The facility will produce the SKYWASP drone, designed to hit targets up to 1,500 kilometers away, addressing security concerns following increased military threats from Iran. This initiative aligns with Saudi Arabia's Vision 2030, which aims to localize 50% of defense spending by the decade's end. The project also reflects a shift in Gulf states towards developing indigenous defense capabilities amidst rising geopolitical tensions, particularly after a series of missile and drone attacks attributed to Iran. Analysts note that Iran's low-cost drone technology has prompted regional governments to explore more affordable defense solutions, including partnerships with US and Ukrainian defense firms.