A joint venture between a US startup and a Saudi firm is reportedly building a factory near Riyadh to produce combat drones modeled on Iran’s cutting-edge Shahed.
The US news site Semafor reported that SR2Vector, a new partnership between Utah-based Vector Defense and Saudi-based startup SR2 Defense Systems, will set up the factory to manufacture SKYWASP unmanned aerial vehicles.
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SKYWASP is a one-way attack drone capable of hitting targets up to 1,500 kilometers away. Lucien Zeigler, SR2’s chief strategy officer and co-founder, said the program can level the playing field and boost Saudi Arabia’s deterrence capabilities.
The factory will produce drones both for the Saudi domestic market and for export to allied countries.
The Shahed-136 is an Iranian-manufactured, low-cost, long-range loitering munition specifically engineered for saturation attacks. It was effectively used in Iran’s retaliatory strikes during the recent US-Israeli aggression against the Islamic Republic.
A recent Wall Street Journal report said corporations in the US, China, France, and Britain are in a full-scale race to develop drones modeled on the Shahed-136. During a visit to Qatar in May 2025, US President Donald Trump openly praised Iranian drones for their efficiency and affordability.