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A joint venture between Utah-based Vector Defense and Saudi startup SR2 Defense Systems, SR2Vector, is developing a factory near Riyadh that will produce SKYWASP, a one-way attack drone modeled on Iran's Shahed, for Saudi domestic use and for export to allied countries, Semafor reported.
"SKYWASP is a program that can level the playing field and boost Saudi Arabia's deterrence capabilities," Lucien Zeigler, SR2's chief strategy officer and co-founder, told Semafor.
He said the factory would produce "operationally relevant volumes consistent with the kingdom's strategic deterrence requirements" but declined to provide output figures, a production timeline or the size of the investment involved.
The SKYWASP is described as a one-way attack drone capable of striking targets up to 1,500 kilometers away, a range that roughly matches the distance from Saudi Arabia's northeast coast to Tehran.
It is developed by Vector Defense and modeled on the Shahed system.
The drone will be produced for both the Saudi market and export to allied nations.
The facility will be backed by MASNA Ventures, a defense-technology fund that Zeigler is currently raising to target increased U.S.-Saudi defense cooperation.
Iran has fired thousands of missiles and drones at Gulf countries since late February. Most were intercepted, but those that struck hit hotels, data centers, and energy infrastructure.
The death toll in the Gulf remained under 30.
The Shahed's estimated $35,000 production cost, far below the cost of the interceptors and missiles used against it, has driven Gulf governments to seek alternatives, including partnerships with Ukrainian companies experienced in countering the Russian-built version of Shahed used extensively in Ukraine.
SR2Vector's factory is backed by MASNA Ventures, which aims to capitalize on deepened U.S.-Saudi defense cooperation following Saudi Arabia's designation as a major non-NATO ally in November, when Crown Prince Mohammed bin Salman met Trump at the White House.
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