RIYADH, 23 August 2006 — With liquid explosives raising new security concerns everywhere, including the Kingdom, security expenditure will account for a bigger share in terms of government spending, sources told Arab News.
A veteran from the security market said the Kingdom’s imports of security equipment, which were expected to rise annually by 13 percent over the next two years, would get a further boost as Saudi Aramco sets up more refineries to cope with the growing demand for oil. The aviation sector is also installing the latest systems to detect bomb materials.
Already, a heightened awareness of security issues has led the government and private sector entities to re-evaluate and upgrade the security apparatus at all major sites.
A number of major projects are in the pipeline. Besides a new oil refinery (with two more under consideration), other security-related projects include a high-tech border security under discussion; port security upgrades; and safety and security equipment at airports.
The security market in the Gulf region is estimated at over $500 million, of which the banking sector accounts for more than 25 percent of this market. Government, industrial, retail, residential and commercial sectors make up the rest. In the Kingdom alone, the total market size for the industrial and safety sector as well as the fire security sector is estimated to be more than $250 million.
There are no standard specifications for security equipment and systems except for the banks. The Saudi Arabian Monetary Agency (SAMA) requires all banks to adhere to their “minimum security and safety standards” involving physical and electronic security. With more foreign banks set to enter the Kingdom, there will be a corresponding growth in the security market.
An offshoot of this development will be the local production of firefighting equipment. Such factories have already come up in the industrial estate in Riyadh. Nearly 50 percent of all fire extinguishers are manufactured locally. Most leading oil, gas and petrochemical companies, however, specify fire extinguishers that meet international specifications only. Thus, there are opportunities for manufacturing safety and security products locally in partnership with Saudi companies.
According to a study conducted by the US Embassy in Riyadh, there will be an increasing demand for centralized and fully integrated systems covering security, fire-fighting and Building Management Systems (BMS). The demand is also high for Access Control System to keep tighter controls on staff and monitor productivity. The US supplies 64 percent of the local market for security equipment.
Due to the Saudi government’s decision to tighten security measures, the inspection teams from the Ministry of Interior have stepped up spot inspections, requiring the industrial sector to upgrade its old and outdated security and safety systems, or replace them with new security technology.
