How Saudi Arabia’s SAMI is driving the localization of the Kingdom’s defense industry

Special How Saudi Arabia’s SAMI is driving the localization of the Kingdom’s defense industry
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The CEO of Saudi Arabia Military Industries, Walid Abukhaled, inspects the progress of business at one of the SAMI sector of aviation and space systems in Jeddah. (SAMI photo)
Special How Saudi Arabia’s SAMI is driving the localization of the Kingdom’s defense industry
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Saudi Arabia Military Industries CEO Walid Abukhaled tours a manufacturing hub of the SAMI subsidiary Aircraft Accessories and Components Co., accompanied by company CEO Mazen Johar. (SAMI photo)
Special How Saudi Arabia’s SAMI is driving the localization of the Kingdom’s defense industry
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The corvette HMS Diriyah was the second corvette to be delivered to the Royal Saudi Naval Forces by Spain's Navantia company last year under a joint venture with SAMI. (Supplied)
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Updated 21 August 2023
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How Saudi Arabia’s SAMI is driving the localization of the Kingdom’s defense industry

How Saudi Arabia’s SAMI is driving the localization of the Kingdom’s defense industry
  • Saudi Arabia Military Industries tasked with indigenization of half of Kingdom’s defense spending by 2030
  • SAMI aims to reduce Saudi Arabia’s reliance on foreign imports by building domestically and hiring locally

JEDDAH: Saudi Arabia’s defense industry is relatively new, dating back to the early 1970s. However, the country has made significant progress in recent years and is now considered a major player in the global market.

In the early years, the Kingdom’s defense sector was focused primarily on the assembly and repair of foreign-made weapons and equipment. More recently, the country has pursued self-reliance in military manufacturing.

This shift has been motivated by a number of factors, including the country’s vast oil wealth, its strategic location in the Middle East, and its desire to reduce its reliance on foreign imports.

One of the key drivers behind this burgeoning industry is the aerospace and defense company Saudi Arabian Military Industries, or SAMI — a wholly owned subsidiary of the Public Investment Fund established in May 2017.

SAMI’s goal is to localize 50 percent of the Kingdom’s defense spending by 2030. To achieve this, SAMI has established 12 joint ventures with the world’s biggest and best original equipment manufacturers.

These joint ventures have enabled SAMI to acquire the technology and expertise it needs to develop its own defense products.

“Through partnering with industry pioneers and experts, we’re making great strides towards achieving this goal,” SAMI told Arab News.




SAMI Chief Executive Officer Walid Abukhaled is briefed at one of the factories of the Intra Defense Technologies by company CEO Hamad bin Abdullah Al-Fawzan. (Photo: SAMI)

“Starting with creating opportunities for local talents and building products that are changing the game in the industry, SAMI is determined to support and empower those talents while fostering global partnerships simultaneously.

“In the five years since its establishment, SAMI has launched several innovative products such as Hazem, Mulhim, and Roaya. Those products have helped solidify Saudi Arabia’s impact and position in the defense industry globally.

“Consequently, we remain focused on developing and enhancing products by creating opportunities and building sustainable partnerships locally and internationally.”

Through its investment and partnership with Navantia, a Spanish state-owned shipbuilding company, SAMI successfully completed Al-Sarawat, a project involving five new Avante 2200 corvettes for the Royal Saudi Naval Forces with capabilities to handle air, surface, or subsurface targets.




Saudi Arabia's HMS Al-Jubail, seen arriving at the King Faisal Naval Base in Jeddah in this photo taken last year, is one of five corvettes produced in a joint venture signed in 2018 between SAMI and Spain's Navantia shipbuilding company. (Photo: Saudi Ministry of Defense)

HMS Al-Jubail and HMS Al-Diriyah are now equipped with Hazem, an integrated combat system that combines on-board weapons and sensors into one single system. It is the first combat management system to be developed by the Kingdom.

Mulhim, another battle management system developed by SAMI, is a battle management system for dismounted soldiers, stationary command centers, and mobile command centers, designed to enhance the combat capability of land formations.

Roaya, meanwhile, is a lightweight armored turret that can be armed with a 7.62 or 12.7 mm caliber machine gun or a 40 mm caliber grenade launcher.

Through partnerships with global leaders in the defense sector, SAMI has developed a range of armored vehicles, tanks, infantry fighting vehicles, fighter jets and drones, and has employed new technologies, such as artificial intelligence and autonomous vehicle technology.




SAMI has signed an agreement with UAE's EDGE group to produce the JAIS 4x4 armored personnel carrier in Saudi Arabia. (Photo: Edge Group)

Its success has not gone without notice. SAMI ranked among Defense News’ top 100 defense firms for the second year in a row, rising 19 places since last year to 79th. The company has set its sights on ranking among the top 25.

However, SAMI is not the only company contributing to the Saudi defense industry’s expansion. Others include Arabian Military Industries, Military Industries Corp. and SAMI Advanced Electronics Co., a subsidiary of the defense firm.

Much of the sector’s success is down to plentiful state investment. In 2022, Saudi Arabia ranked fifth in the world for military spending, after the US, China, Russia, and India, dedicating $75 billion to defense — accounting for 3.3 percent of global military spending.

The US led the ranking with $877 billion, or 3.5 percent of its gross domestic product. However, Saudi Arabia’s spending represents a higher share of its GDP, at 7.4 percent.

Investment in Saudi Arabia’s defense industry has multiple benefits for the country. Firstly, it helps to reduce the Kingdom’s reliance on foreign imports. This is important for national security, as it reduces the country’s vulnerability to supply chain disruptions.

Secondly, the growth of the defense sector creates high-skill jobs and opportunities for Saudi citizens. Finally, it helps to develop the country’s technological and manufacturing capabilities, leading to economic diversification and the growth of other sectors.

The boost in defense spending was first unveiled in 2016 when Crown Prince Mohammed bin Salman sat with veteran TV journalist Turki Al-Dakhil for his first-ever television interview, which covered a wide range of topics regarding the Kingdom’s future.




In this picture taken in April 2016, then Saudi Deputy Crown Prince Mohammed bin Salman, in an interview with Al Arabiya's General Manager Turki Al-Dakhil, unveiled the Kingdom's strategy to boost defense spending and develop a home-grown defense industry. (Photo courtesy of Al Arabiya/File)

“Is it reasonable that in 2014, Saudi Arabia was the largest fourth country in the world, and the largest third country in 2015 in terms of military spending; while we don’t have industry inside Saudi Arabia?” the crown prince asked during the interview.

“We have a strong demand that we should meet inside Saudi Arabia, which is the demand on the military industries.”

It was during this same interview that the crown prince alluded to establishing a holding company for military industries, “which is 100 percent for the government.” Thus, the idea of SAMI was born.

SAMI’s rapid growth since then has led to a significant increase in employment, with the company now boasting more than 3,000 employees, 84 percent of whom are Saudis, with plans to add a further 1,500 staff in the next quarter. The firm had just 63 staff in 2018.

With a view to develop local talent and expertise in the defense industry, SAMI has established a number of training and development programs to help Saudis acquire the skills and knowledge they require.

Aerospace, drone regulation and the space industry are other growing sectors in the defense market that have experienced increased investment. The government has signed contracts with several players in these fields, including Boeing, Lockheed Martin, Safran Helicopter Engines, ST Engineering, Airbus, and L3 Harris.

Its most recent signing was with Turkish company Baykar Tech to localize the manufacture of the Bayraktar Akinci drone and its component systems.

“We believe building local and global partnerships is a key factor in achieving SAMI’s goals, and being part of the Baykar Tech agreement is a huge step forward in doing so,” SAMI told Arab News.




Major General Attiyah bin Saleh Al-Malki, chief of the General Directorate of Local Manufacturing at the Saudi Ministry of Defense, and his delegation, get a briefing at the engineering hub of the Intra Defense Technologies, a local company that designs, develops, manufactures high performance and innovative unmanned aerial systems. (Intra Defense Technologies photo)

“Those partnerships help us provide local talents with the best opportunities to grow and learn.”

Indeed, to drive ahead the localization of defense jobs, SAMI has taken the lead with the Kingdom’s new Academy of Defense Industries, which will significantly contribute to SAMI’s goal of becoming the largest supporter of national human resource.

“Furthermore, having SAMI’s CEO, Eng. Walid A. Abukhaled, as the chairman of the new Academy of Defense Industries is how we can ensure those opportunities are given to the right people, as the sole purpose of this academy is to find, prepare, and introduce young talents to the defense industry sector,” SAMI added.

 


Riyadh forum advances global postal network

Riyadh forum advances global postal network
Updated 03 October 2023
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Riyadh forum advances global postal network

Riyadh forum advances global postal network
  • Delegates agree to adopt the Riyadh Solution to help improve international mailing services
  • Initiative expected to enhance cooperation between UPU members and other postal sector entities

RIYADH: Delegates attending the fourth Extraordinary Congress of the Universal Postal Union, in the Saudi capital, have agreed to adopt the so-called Riyadh Solution to help improve international mailing services.

The move is aimed at strengthening cooperation and partnerships globally, while making them more interconnected, and follows years of negotiation and work to develop the logistics sector.

The initiative was expected to enhance cooperation between UPU members and other postal sector entities while raising the quality and scope of products and services around the world.

Representatives of more than 190 countries are participating in the congress, which runs until Oct. 5. They will explore opportunities to expand membership and tackle key issues affecting the global postal system.

The Riyadh Solution will see the introduction of projects such as the establishment of customized business models, facilitating access to UPU services for parties beyond designated operators or official postal institutions.

The adoption of the Riyadh Solution is considered by the UN agency to be a significant step toward a more integrated and efficient global postal system that meets the evolving needs of individuals and businesses worldwide.


Riyadh exhibition to revive falconry heritage

Riyadh exhibition to revive falconry heritage
Updated 03 October 2023
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Riyadh exhibition to revive falconry heritage

Riyadh exhibition to revive falconry heritage
  • Fifth International Saudi Falcons and Hunting Exhibition will begin in Riyadh on Thursday
  • Exhibition highlights the Saudi Falcons Club’s commitment to preserving and enriching the traditions of falconry

RIYADH: The fifth International Saudi Falcons and Hunting Exhibition, a cultural and entertainment event showcasing the ancient sport, will begin in Riyadh on Thursday.

Held over 10 days at the Saudi Falcons Club’s headquarters in Malham, north of Riyadh, the exhibition highlights the club’s commitment to preserving and enriching the traditions of falconry.

Bringing together the heritage of falconry, hunting, land and sea trips, and related hobbies, the exhibition features a large pavilion of weapons.

Targeting visitors from all walks of life, especially falconry enthusiasts, hunters and camping enthusiasts, the exhibition aims to pass down this rich heritage to current and future generations as a key cultural legacy in the Kingdom.

The exhibition includes a specialized museum providing insights into the history of falconry, as well as an art, painting and calligraphy exhibition. It offers a multitude of events and pavilions, combining cultural and entertainment aspects to enhance visitors’ experience.

The previous four exhibitions attracted a significant number of attendees. In 2018, there were about 150 exhibitors and a total of 120,000 visitors, averaging 24,000 visitors a day. In 2019, the number of exhibitors increased to 300, attracting 350,000 visitors, averaging 70,000 visitors daily.

The exhibition achieved even greater success in its third outing in 2021, rebounding from the COVID-19 pandemic. It featured 350 exhibitors and drew half a million visitors, with weapon sales surpassing SR200 million ($53 million). In 2022, the number of exhibitors rose to 400, and the total number of visitors exceeded 512,000.

These improved results are the outcome of the exhibition’s continuous development, aiming to attract more than 550,000 visitors this year, representing various dimensions of heritage and national culture.

The Imam Turki bin Abdullah Royal Reserve Development Authority is also participating in the exhibition. The authority’s involvement coincides with the upcoming second season of the North Reserve, the Kingdom’s first sustainable hunting reserve. It aims to promote the culture of sustainable hunting, conserve natural balance and adhere to environmental sustainability standards.

The reserve is currently accepting applications from those interested in participating in hunting and camping activities in the coming months.


OIC conference stresses building ‘resilient’ food systems

OIC conference stresses building ‘resilient’ food systems
Updated 03 October 2023
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OIC conference stresses building ‘resilient’ food systems

OIC conference stresses building ‘resilient’ food systems
  • The conference recognized the need to establish the necessary financial infrastructure and legal frameworks to improve financial inclusion for farmers
  • The final statement emphasized the significance of cooperation and coordination with relevant OIC institutions

RIYADH: The Ninth Ministerial Conference of the Organization of Islamic Cooperation on Food Security and Agricultural Development emphasized the importance of enhancing cooperation within the OIC framework in the food and agricultural sector.
The goal is to build more resilient food systems and achieve sustainable development objectives through knowledge exchange and the implementation of best practices. This will enhance food security and productivity.
Held in Doha, Qatar, from Oct. 1-2 under the theme “Towards Achieving the Sustainable Development Goals 2030 in the OIC Member States,” the conference recognized the need to establish the necessary financial infrastructure and legal frameworks to improve financial inclusion for farmers.
The conference also highlighted the importance of supporting farmers by providing access to financial products and services, including Islamic finance models that can enhance economic resilience and increase production and income.
The final statement of the conference emphasized the significance of cooperation and coordination with relevant OIC institutions in conducting a study and developing a business model and cooperation framework for contract farming. Additionally, the conference aimed to assess the needs and capabilities of member states in this area. The study and business model will be presented for consideration and decision in the next session of the conference.
The participants of the conference expressed their appreciation to Qatar for hosting the event and acknowledged its role in supporting efforts to enhance food security in OIC member states.
Meanwhile, OIC Secretary-General Hissein Brahim Taha addressed the 6th session of the General Assembly of the Islamic Organization for Food Security in Doha on Tuesday.
Taha, through a statement delivered on his behalf by the assistant secretary-general for economic affairs, Ahmed Kawesa Sengendo, called for discussions on how the IOFS, as an OIC specialized organ, can support small farmers in OIC countries. The aim is to increase local food production, meet local and regional food demands, develop markets and reduce food wastage.
Taha highlighted that small farmers, constituting 76 percent of total farmers in OIC countries, often employ traditional labor-intensive methods, resulting in low productivity.
He stressed the need for concrete action and effective programs and projects at national, regional and international levels to address the challenges posed by food insecurity in OIC countries.
Taha emphasized the importance of the IOFS’s role in implementing OIC projects and programs related to agriculture, rural development and food security. He called for a tangible focus on agricultural projects to promote agricultural growth.
The OIC chief also underscored the significance of fostering cooperation and synergy between member states, particularly in capacity-building, cooperative research programs and efficient resource management, to enhance agricultural productivity. Additionally, he highlighted the importance of encouraging technological innovation and implementing policies that promote capacity development and support investment.


Nigeria, Saudi Arabia maintain fruitful bilateral coordination: Envoy

Nigeria, Saudi Arabia maintain fruitful bilateral coordination: Envoy
Updated 03 October 2023
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Nigeria, Saudi Arabia maintain fruitful bilateral coordination: Envoy

Nigeria, Saudi Arabia maintain fruitful bilateral coordination: Envoy
  • Ambassador Yahaya Lawal: Our bilateral cooperation, which was initially Hajj-centric, has witnessed diversification to cover a number of mutually beneficial areas
  • Yahaya Lawal: We share similar aspirations as members of OPEC+ for a stable oil market

RIYADH: Nigeria and Saudi Arabia have maintained a fruitful mechanism of bilateral consultations and coordination between them since the establishment of formal diplomatic relations in 1961, according to Nigerian ambassador to Saudi Arabia, Yahaya Lawal.

Speaking at Nigeria’s 63rd independence day anniversary function in Riyadh, the envoy on Monday said: “Last week we joined Saudi brothers and sisters in commemorating their 93rd National Day. We wish them further progress in their remarkable journey toward a prosperous future. Our heartfelt appreciation goes to King Salman and Crown Prince Mohammad bin Salman for sustained endeavours in consolidating and advancing the age-long historical and cordial relations binding our two brotherly countries.”

After independence on Oct. 1, 1960, Nigeria established formal diplomatic relations with Saudi Arabia in 1961.

“I am happy to inform you that for the past six decades, our bilateral cooperation, which was initially Hajj-centric, has witnessed diversification to cover a number of mutually beneficial areas. I am pleased to note that a large number of our compatriots and professionals, including valued Nigerian football players, are actively working and contributing silently to the strengthening of these relations in various fields. This is expected to receive an additional boost when more than a dozen agreements and MoUs currently under negotiation within the framework of the Nigeria-Saudi Joint Commission are concluded,” the envoy said.

“It is our firm belief that these agreements, when finalized and implemented, would contribute in unlocking the existing huge potentials in the relationship and elevate our cooperation to a strategic level,” Lawal said.

“As members of several international organizations such as the UN, the Organization of Petroleum Exporting Countries, the International Energy Forum, the G77, the Organization of Islamic Cooperation, the Islamic Development Bank, the Digital Cooperation Organization and the Saudi-led Islamic Military Counter Terrorism Coalition, our two nations have effectively used these and other platforms for close interaction and coordination,” he said.

“We share similar aspirations as members of OPEC+ for a stable oil market. We also subscribe to the promotion of South-South cooperation for enhancing trade, investment and sustainable economic development.”

Nigeria, like the Kingdom under its “Vision 2030,” was diversifying its economy away from oil dependence by focussing on agriculture, mining, the digital economy and tourism to promote sustainable development, he said.

“Our country is also cleansing and liberalizing the business environment to attract more domestic and Foreign Direct Investments. We have introduced in this regard a number of programs, which include a new National Digital Economic Policy and Strategy, the establishment of Special Agro Industrial Processing Zones, the Agriculture for Food and Jobs Programme and the Petroleum Industry Act, which seeks to transform and open up the oil and gas sector,” he said.

“Our country has also put in place sufficient incentives to attract Foreign Direct Investments. These include a tax holiday for up to five years on agriculture and solid minerals, easy company registration within 24 hours, pioneer status incentives of up to three years, easy repatriation of profits, easy access to credit facility, low import duties, and equal treatment of local and foreign companies,” he said.

The envoy also thanked Saudi Arabia for sending a ministerial delegation to Abuja to participate in the investiture ceremony of the new cabinet. The delegation held fruitful bilateral talks with Nigerian President Bola Tinubu.

The president reaffirmed Nigeria’s full backing for the Kingdom to host Expo 2030 in Riyadh and wished it success at the election coming up in December in Paris.

As regional leaders, Nigeria and Saudi Arabia share similar visions for peace in their respective environment.

“In this regard, we thank the Kingdom for its peace endeavours in Sudan. We are also thankful for the annual scholarship awards to Nigerians to study in Saudi universities, and wish to acknowledge with gratitude the numerous humanitarian interventions in Nigeria by the Kingdom through the King Salman Humanitarian Aid and Relief Center,” he said.

He also commended the Kingdom for its initiative to host the Saudi-Africa and Arab-Africa summits in Riyadh and for its faith in the continent.

“It is our hope that the upcoming historic fora would lay the foundation for a new era of partnership between the Kingdom and Africa, especially with the coming into force of the Africa Continental Free Trade Area. The World Bank estimates that the AfCFTA will increase Africa’s income by $450 billion by 2035 and raise intra-African exports by more than 81 percent.”

This single market trade agreement will enable the African economy to reach the 29 trillion dollar mark by 2050, according to the UN Economic Commission for Africa.

The function was attended by Riyadh Deputy Gov. Prince Mohammed bin Abdulrahman bin Abdulaziz.


Air quality in Kingdom monitored by 240 stations

Air quality in Kingdom monitored by 240 stations
Updated 03 October 2023
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Air quality in Kingdom monitored by 240 stations

Air quality in Kingdom monitored by 240 stations
  • Stations aim to inform the public about the quality of air in their surroundings, allowing them to take necessary precautions when needed
  • National Center for Environmental Compliance takes immediate action as soon as the stations detect high levels of air pollution

RIYADH: The National Center for Environmental Compliance has installed 240 monitoring stations across various regions in the Kingdom in an effort to provide real-time information on air quality. The stations collect data on 22 different air components and update indicators every five minutes.

The stations aim to inform the public about the quality of air in their surroundings, allowing them to take necessary precautions when needed, the Saudi Press Agency reported on Tuesday.

Ali Al-Qarni, the project supervisor at the center, said that the distribution of the sites had taken into account population density and the presence of industrial cities and facilities with potential environmental impact.

The center takes immediate action as soon as the stations detect high levels of air pollution, in accordance with the executive regulations of the environmental system, Al-Qarni added.

He said: “We’ve created a website for the public that maps the locations of air monitoring stations in all regions of the Kingdom.

“We will soon launch an application on mobile phones to keep the public updated with the findings of the stations.”

Some of the monitoring stations are mobile and can be relocated to areas with higher demand, Al-Qarni said.

He added that industrial cities will also receive periodic reports to ensure the maintenance of air quality.