If the first two contracts were expected by Wang Dong, then the third contract surprised him a little. Pen "Fun" Pavilion www.biquge.info

To be precise, a letter of intent to invest.

The first party is not Prince Mohammed, nor is it the Saudi Ministry of Defense, but Prince Walid, the richest man in Arabia with tens of billions of dollars in assets.

In fact, after Wang Dong came to Saudi Arabia, Waleed proposed that as long as D&F got the procurement contract, he would give ten times the investment.

At that time, Wang Dong didn't take it seriously at all, thinking that Prince Walid was joking.

It's just that there is no need to doubt it.

It is indeed tenfold, that is, a billion dollars of investment.

Of course, Prince Waleed also made some requests.

First, he wants to get a five-percent stake in D&F.

Why five percent?

Fortunately, Serena made a note on a note.

According to international management, a 5% shareholding is the minimum standard for an individual investor to enter the board of directors, that is, to become a member of the board of directors.

However, Prince Waleed did not offer to become a director of D&F.

Perhaps, it will be brought up in the future.

Second, the billion-dollar investment is only $100 million in cash, and the other $900 million is paid for in other ways, and it can only be used in Saudi Arabia.

To put it simply, D&F used the $900 million investment to open a branch and production plant in Saudi Arabia.

As for why this was done, Serena also explained.

It's very simple, it has to do with the Saudi Army's redress.

According to the information provided by Nicholas, the total strength of the Saudi army is 150,000, and if it wants to be fully reequipped, it will have to purchase at least 80,000 rifles.

If you calculate the unit price of 50,000 US dollars, it is 4 billion US dollars.

Obviously, even if Saudi Arabia is the largest tyrant country in the Gulf, it is absolutely impossible to spend $4 billion to purchase 80,000 rifles that are not important at all.

Even if the unit price is reduced by half, it is ridiculously expensive.

You must know that the most expensive PR model in FN's SCAR series rifles, including sighting accessories, costs less than $30,000 for the whole system.

The only way to lower prices is to open factories in Saudi Arabia and be exempt from import and export duties.

In addition, with Prince Mohammed and Prince Waleed as the backstage, you can get tax incentives, which greatly reduces the cost of production in Saudi Arabia.

In this regard, Serena also gave a reason.

That is, the Saudi authorities hope to establish their own military-industrial system by cooperating with D&F, even if it is only to produce the most basic firearms.

In fact, this is also related to the war in the Middle East.

Until civil wars break out in Libya, Syria and Yemen, Saudi Arabia will only have to consider the threat from the north, namely the challenge from Iran.

To this end, Saudi Arabia has spent hundreds of billions of dollars in decades to purchase a large amount of advanced equipment from countries around the world.

Tanks, warships, combat aircraft, Saudi Arabia has almost the best in the world, at least the most expensive, and Saudi Arabia has also created the most "tyrant" army in the Gulf region.

If it is only to deal with the threat from Iran, this "local tyrant" army will definitely be enough.

After all, with the backing of the United States and other Western countries, Saudi Arabia has no reason to fear a military invasion by Iran, let alone a full-scale war.

With the advent of the "Arab Spring", after the outbreak of civil wars in Libya, Syria and Yemen, the situation of Saudi Arabia is not so optimistic.

The possibility of a military invasion remains slim.

The problem is that when exporting military power to foreign countries, it is obviously unrealistic to continue to use the original system, that is, to buy everything.

You know, Saudi Arabia is not only supporting Yemeni government forces, but also supporting Syrian rebels.

Even if it is possible to purchase the required weapons and equipment through regular channels, it is completely dependent on imports, which is not only expensive, but also has no guarantee of supply.

After so many years of civil war between Syria and Yemen, the Saudi authorities have long discovered this problem.

For this, it is also necessary to build its own defense industry.

Building a complete defense industry is an enormous undertaking that will take decades, so the Saudi authorities can only start with the basics.

Build an arsenal to ensure a self-sufficiency of guns and ammunition.

Obviously, if you cooperate with a few other arms companies, let alone a billion dollars, even if it doubles, it may not be able to achieve your wish.

Quite simply, these arms giants are too closely tied to the governments of Western countries.

Whether it's to make more money or to deny Saudi Arabia the ability to produce arms on its own, they won't open factories in Saudi Arabia to produce arms.

Let's not forget that Saudi Arabia is an Arab country, and most Western countries, led by the United States, have close ties to Jewish conglomerates.

Over the past few decades, the Saudis have not received truly valuable military technology.

At that time, Saudi Arabia purchased thousands of M1A2SA main battle tanks from the United States, but only got a repair factory, and only simple maintenance was carried out.

It was not until the purchase of the "Pterodactyl" 2 UAV from China that Saudi Arabia first came into contact with the production technology of advanced weapons.

That is, Huaxia not only sold a production line of "Pterodactyl" 2, but also trained skilled workers for Saudi Arabia and authorized Saudi Arabia to carry out the transformation.

Obviously, Wang Dong is a Chinese, which also plays a bonus role.

The third requirement is actually a large-scale procurement contract for the Saudi Army.

To put it simply, after the establishment of the factory in Saudi Arabia, as long as D&F can reduce the price of DF762 rifles to the average level of the SCAR series, Waleed will personally come forward to persuade the Saudi royal family to start the army refitting work and purchase 80,000 new rifles from D&F.

This means that the ex-factory price of DF762N should be controlled within $20,000.

It's difficult, but it's not impossible.

On this basis, Waleed mentioned that after the Saudi Army's large-scale procurement of DF762 series rifles, other Gulf countries will follow.

In other words, it is expected that the sales volume will be more than 200,000 units.

Of course, this is still a guarantee.

Serena also made an assessment that if all friendly countries of Saudi Arabia are counted, especially Pakistan, then the sales of DF series rifles are likely to reach a million.

What is this concept?

Even if the average price is controlled within $10,000 in the end, it will be 10 billion sales!

No company in the world can guarantee to sell $10 billion worth of guns in the next decade, and it's all government orders.

If it does, D&F will become one of the world's largest firearms companies.

Maybe not one, but the only one.

Of course, Wang Dong didn't look that far.

It's not that we don't have a long-term vision, but we must be down-to-earth and not ambitious.

Even the Saudi military did not get a big order, saying that it would sell a million rifles in ten years, isn't that too ambitious, what is it?

Obviously, this contract, that is, the letter of intent to invest, must be signed.

Prince Waleed is the God of Wealth, if you don't hug his thighs, whose thighs are you hugging?