SAMI and BAE Systems announcement to boost Saudi defense industry ‘soon’: CEO

Exclusive SAMI and BAE Systems announcement to boost Saudi defense industry ‘soon’: CEO
SAMI aims to localize 50 percent of total military spending by 2030, in line with the Kingdom's Vision 2030. (File)
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Updated 01 August 2022

SAMI and BAE Systems announcement to boost Saudi defense industry ‘soon’: CEO

SAMI and BAE Systems announcement to boost Saudi defense industry ‘soon’: CEO
  • SAMI also announced the establishment of a company to produce and manufacture composite parts for aircraft
  • CEO Walid Abukhaled also said the Kingdom would be looking to export after building their capabilities

FARNBOROUGH, UK: Saudi Arabian Military Industries’ CEO has hinted his firm and BAE Systems will soon make announcements aimed at boosting the “indigenous capability” of Saudi Arabia’s defense industry.

Speaking to Arab News from the Farnborough Air Show held in the UK, Walid Abukhaled said that solving the Kingdom’s supply chain challenge is key to boosting the military sector.

He warned that SAMI could not do “everything ourselves” when it comes to developing the Kingdom’s defense industry, and later this year the company would set out the “services and support required” by the firm.

SAMI aims at localizing 50 percent of total military spending by 2030, in line with the Kingdom’s Vision 2030.

 

 

Referring to talks between SAMI and BAE Systems, Abukhaled said: “There is nothing that we can announce yet, but we’re hoping soon we will be able to both announce some positive news that will demonstrate and show that SAMI is the national defense champion, and they are working very hard to build indigenous capability in the Kingdom.”

Abukhaled pointed to BAE Systems’ 50 years of experience in operating in Saudi Arabia, adding: “They acknowledged that the changing environment in the Kingdom required them also to adapt to the new requirements and to be key strategic partners in the Kingdom.”

As well as outside companies, Abukhaled emphasized the important role of the General Authority for Military Industries, also known as GAMI, in building up strong Saudi supply chains.

When it comes to helping small and medium enterprises become more involved, he said: “We’re planning to have an industry day for all our suppliers toward quarter three of this year.”

During the Farnborough Airshow, which took place from July 18-22, SAMI also announced the establishment of a company called SAMI Composite LLC to produce and manufacture composite parts that will go into both military and commercial aircraft.

The facility is expected to start operations by the third or fourth quarter of 2023, Abukhaled revealed.

A joint venture has been launched in Jeddah, a machine has been installed, and Saudi technicians returned from specialist training abroad on how to produce metallic precision parts that go into aircraft.

Abukhaled told Arab News there was also a “specific key project with Lockheed Martin, and that was related to SAMI Composite.”

He added that in nearly five years, SAMI has signed 13 global joint ventures with the top defense companies globally, including Boeing, Lockheed Martin, Northrop Grumman, General Dynamics, Airbus and others.

 

 

“Those joint ventures will be enablers for us,” said the official, adding: “We will establish capability in the Kingdom, we will grow together, we will work with our partners to support the Saudi supply chain, and really to grow and insert capability in the kingdom.”

SAMI’s focus is to deliver “A+ and high-quality services” to customers to meet their demands and overcome their challenges, Abukhaled said.

“When we start to build these capabilities, then we would look outside of the Kingdom. However, now, if there are opportunities that come from abroad, from ally nations and friendly countries, and it’ is on projects that we are already executing in the Kingdom, we will absolutely welcome it with our partners to export outside,” he added.

Other deals signed by SAMI at the airshow included an agreement with Singapore’s ST Engineering to produce “cutting-edge defense systems”, and an agreement with Airbus Helicopters Arabia to assist with the provision of rotorcraft support to the Saudi Armed Forces.


Abu Dhabi Chamber of Commerce forms new board for businesswomen council

Abu Dhabi Chamber of Commerce forms new board for businesswomen council
Updated 02 October 2022

Abu Dhabi Chamber of Commerce forms new board for businesswomen council

Abu Dhabi Chamber of Commerce forms new board for businesswomen council
  • Council enables female entrepreneurs to capitalize on business opportunities

ABU DHABI: The Board of Directors of the Abu Dhabi Chamber of Commerce and Industry has formed a new board for the Abu Dhabi Businesswomen Council, Emirates News Agency reported.

The new board’s mission is to help female entrepreneurs improve their skills, introduce them to relevant laws and policies, and teach them how to take advantage of local and federal government initiatives.

It is part of the chamber’s efforts to help businesswomen and female entrepreneurs in Abu Dhabi contribute to the emirate’s economic growth.

The ADBWC board, chaired by Asma Al-Fahim, is made up of Abu Dhabi Chamber board members as well as successful Abu Dhabi businesswomen such as Nour Al-Tamimi, Dr. Khadija Al-Ameri, Marwa Al-Mansoori and Shaikha Al-Nowais.

“Over the past 50 years, the UAE has placed women’s empowerment amongst its top priorities and supported the Emirati woman to be a key partner in building the UAE,” Al-Fahim said.

She added: “The support of H.H. Sheikha Fatima bint Mubarak, chairwoman of the General Women’s Union, president of the Supreme Council for Motherhood and Childhood, supreme chairwoman of the Family Development Foundation and honorary chairwoman of the ADBWC, played a huge role in women’s development in all fields, especially entrepreneurship. Thanks to H.H. Sheikha Fatima, the Emirati woman is now equipped with all the factors of success to occupy her proper place regionally and internationally.”

Al-Fahim added that the ADBWC is eager to increase communication with businesswomen in Abu Dhabi in order to keep them up to date on the latest economic changes.

Furthermore, Al-Fahim said that the council will launch new initiatives and programs to support the business environment, giving female entrepreneurs the necessary tools to capitalize on business opportunities locally, regionally and internationally.


Saudi Mouwasat completes $27m acquisition of 51% of Jeddah Doctors Co.

Saudi Mouwasat completes $27m acquisition of 51% of Jeddah Doctors Co.
Updated 02 October 2022

Saudi Mouwasat completes $27m acquisition of 51% of Jeddah Doctors Co.

Saudi Mouwasat completes $27m acquisition of 51% of Jeddah Doctors Co.

RIYADH: Saudi healthcare provider Mouwasat Medical Services Co. said that it has completed the acquisition of 51 percent of Jeddah Doctors Co. in a deal worth SR102 million ($27 million).

The financial impact of this acquisition is expected to appear in the third quarter of 2022, according to a bourse filing.

Jeddah Doctors Co. is a Saudi closed joint stock company that owns a hospital presently under construction in Jeddah called Jeddah Doctors Hospital.


TASI in green as recession concerns ease: Closing bell

TASI in green as recession concerns ease: Closing bell
Updated 02 October 2022

TASI in green as recession concerns ease: Closing bell

TASI in green as recession concerns ease: Closing bell

RIYADH: The Saudi main index ticked up in its first trading session of October as investor recession fears subsided.

The Tadawul All Share Index ended  0.72 percent higher to reach 11,487; the parallel market Nomu edged 0.34 percent higher to 19,939.

Saudi oil giant Aramco ended with a 0.28 percent decline, while Rabigh Refining and Petrochemical Co. edged up 1.31 percent.

The Saudi National Bank, the Kingdom’s largest lender, fell 0.63 percent, while Saudi British Bank increased by 2.43 percent.

The Kingdom’s most valued bank Al Rajhi gained 1.48 percent, while Alinma Bank gained 1.93 percent.

Saudi Paper Manufacturing Co. decreased by 0.19 percent, after it signed SR166 million ($44 million) agreement with Italy-based Toscotec for a raw tissue paper roll production line.

Retal Urban Development Co. dropped 0.28 percent, after its shareholders approved a cash dividend of SR2 per share for the first half of 2022.

Tihama Advertising and Public Relations Co. declined 1.61 percent to lead the fallers, after the company and UK-based WPP postponed their merger agreement until Oct. 31, 2022.

Middle East Healthcare Co. led the pack of gainers with an increase of 9.93 percent.


PIF’s green bond issuance to bolster market, says London bourse official

PIF’s green bond issuance to bolster market, says London bourse official
Updated 02 October 2022

PIF’s green bond issuance to bolster market, says London bourse official

PIF’s green bond issuance to bolster market, says London bourse official

RIYADH: Saudi Arabia’s Public Investment Fund green bonds will help bolster the regional and global green bond market, which last year amounted to $900 billion, the head of Debt Capital Markets and Funds at the London Stock Exchange told Al-Arabiya.

The fund currently manages assets of over $600 billion. The PIF targets those sectors for investment that are in line with the framework of green bonds and the fund offers complete transparency to investors, Shrey Kohli added.

As of now, the framework and prospectus of the PIF are available on the London Stock Exchange platform, which allows investors to gain an understanding of the fund’s strategy.

Kohli said the London Stock Exchange supported the PIF during its tour to promote the green bonds and fund witnessed an overwhelming investors’ response from around the world.

The fund has hired a large group of banks including Citi and JPMorgan to arrange a debut issuance of multi-tranche US dollar-denominated green bonds.

BNP Paribas, Citi, Deutsche Bank, Goldman Sachs and JPMorgan, mandated as joint global coordinators and active book runners.

A debut issuance in tranches of five, 10 and potentially a longer-dated tenor will follow, subject to market conditions. The issuance will be under GACI First Investment Co. and guaranteed by the PIF.

Credit Agricole, First Abu Dhabi Bank, HSBC, Mizuho, SMBC Nikko, SNB Capital, Societe Generale and Standard Chartered are also active book runners, while ANB Capital, BofA Securities, Bank of China, GIB Capital, ICBC, IMI Intesa Sanpaolo, Morgan Stanley, MUFG, Natixis, Riyad Capital and Saudi Fransi Capital are also on the deal.


SAGO buys 5k tons of wheat for $2.3m from local farmers

SAGO buys 5k tons of wheat for $2.3m from local farmers
Updated 02 October 2022

SAGO buys 5k tons of wheat for $2.3m from local farmers

SAGO buys 5k tons of wheat for $2.3m from local farmers

RIYADH: The Saudi Grains Organization has bought the 16th batch of wheat worth SR8.84 million ($2.35 million) from 18 local farmers.

It is part of the organization’s arrangements to ensure adequate wheat supply by procuring grain from abroad and through local farmers. 

The current batch of local wheat weighed 5 tons, according to a SAGO statement.

Since the beginning of the current season, it added, wheat worth SR823.53 million has been bought from local farmers.