Saudi Arabian Military Industries and France’s Naval sign deal to build warships in the Kingdom

SAMI and French Naval Group will manufacture warships, frigates, and submarines in Saudi. Above, is an image of a Saudi amphibious hovercraft participating in military drills in 2018. (AFP/File)
Updated 18 March 2019
0

Saudi Arabian Military Industries and France’s Naval sign deal to build warships in the Kingdom

  • SAMI is expected to create 5,000 new jobs
  • Saudi plans to nationalize 50% of its military spending for Vision 2030

JEDDAH: A joint venture to strengthen the Royal Saudi Naval Forces is to be set up between a state-owned defense firm and a French company specializing in naval defense.
The Saudi Arabian Military Industries Company (SAMI) and Naval Group signed an agreement on the sidelines of the International Defence Exhibition and Conference in Abu Dhabi.
The agreement sets out the framework for establishing the joint venture, which will strengthen the Kingdom’s efforts to localize essential industrial skills and capabilities.
SAMI aims to be one of the world’s top 25 military industry companies by 2030, and Crown Prince Mohammed bin Salman wants to localize 50 percent of Saudi military spending by 2030 also.
SAMI CEO Dr. Andreas Schwer said: “Our joint venture agreement with Naval Group laid the foundation of a strategic partnership that will reinforce SAMI’s commitment to helping Saudi Arabia develop self-sufficient defense capabilities. The collaboration offers us an excellent opportunity to leverage Naval Group’s strong track record of helping its partners develop sovereign defense capabilities to create an integrated military industries ecosystem in the Kingdom.”
“Through design, construction, and maintenance activities, the joint venture will contribute significantly to further enhancing the capabilities and readiness of our Royal Saudi Naval Forces.”
Last year, SAMI signed agreements with Boeing and Spanish state-owned shipbuilder Navantia.  
Vision 2030 is highly reliant on the contribution of SAMI to the gross domestic product (GDP). According to the vision, the plan is to nationalize 50 percent of the military spending, and increase the contribution of the private sector to the GDP by 40-65 percent.
Public Investment Fund of Saudi Arabia expects SAMI to contribute almost $240 million to the national GDP by 2020, and to create 5,000 new jobs.
SAMI is set to become one of the top manufacturers globally, combining the latest technologies and best expertise to produce military equipment according to international standards and aid the development of the Saudi army.
The company’s strategy is based on implementing best practices from extensive studies in the industry, and collaborating with national and international partners.
SAMI designed their areas of operation to increase profitability and nationalization of the industry.


Iranian regime continues to feed sectarianism: Saudi deputy defense minister

Updated 24 April 2019
0

Iranian regime continues to feed sectarianism: Saudi deputy defense minister

  • “We have to choose between the chaos that Iran spreads and stability, security and development,” he said
  • Delegation led by Prince Khalid bin Salman bin Abdulaziz in Russia for an official visit

DUBAI: Saudi Arabia’s Deputy Defense Minister Khalid bin Salman said the Iranian regime continues to feed sectarianism and disrespect international laws at the eighth Moscow Conference on International Security on Wednesday.

“We have to choose between the chaos that Iran spreads and stability, security and development,” he said adding that “Iran is spreading chaos in the region through destruction and bloodshed, and by supporting the militias of Hezbollah and Houthis.”

“Houthi militias continue to violate the resolutions of the Security Council and the Stockholm Agreement, ignored UN resolution 2216 and the Gulf initiative…our goal is to achieve stability for Yemeni citizens under a legitimate government,” he said.

The deputy defense minister also said that the Kingdom is witnessing today an unprecedented transformation and development to achieve the vision 2030.

A delegation led by Prince Khalid bin Salman bin Abdulaziz, the Saudi deputy minister of defense, has arrived in Russia for an official visit on Tuesday, during which the members will take part in the eighth Moscow Conference on International Security and hold a number of meetings.

Prince Khalid was welcomed by Saudi Ambassador to Russia Dr. Raed Qurmali, military adviser Maj. Gen. Talal Al-Otaibi and Military Attache Gen. Mohammad Al-Mutairi, along with the deputy chief of staff of the Russian defense ministry and other civilian and military officials.