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
1 / 3
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
2 / 3
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
3 / 3
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)
Short Url
Updated 21 August 2023
Follow

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.

 


Beijing to host China-Saudi Investment Conference on Tuesday

Beijing to host China-Saudi Investment Conference on Tuesday
Updated 10 December 2023
Follow

Beijing to host China-Saudi Investment Conference on Tuesday

Beijing to host China-Saudi Investment Conference on Tuesday
  • The conference aims to enhance the strategic partnership between the two countries in investment, trade and the economy
  • Saudi Investment Minister Khalid Al-Falih will also visit several Chinese cities to meet with business leaders

RIYADH: Beijing will host the China-Saudi Investment Conference on Tuesday on the sidelines of a visit by Investment Minister Khalid Al-Falih, the Saudi Press Agency reported on Saturday.
The conference aims to enhance the strategic partnership between the two countries in investment, trade and the economy, and to support China’s Belt and Road Initiative to connect Asia with Africa and Europe.
More than 700 attendees are expected, including senior officials, CEOs, investors and entrepreneurs. 
They will review and discuss investment opportunities and initiatives aimed at fostering increased cooperation between the two countries.

The conference agenda includes dialogue sessions covering topics such as clean energy, finance, investment, mining, metals, tourism, entertainment, food security, agriculture, logistics services, shipping, supply chains, the digital economy, artificial intelligence, modern manufacturing industries, and advanced technology through workshops.

Al-Falih will also visit several Chinese cities to meet with business leaders. Technical teams from his ministry will conduct workshops and field visits to explore cooperation opportunities, with participation expected from representatives in both the government and private sectors.

During the recent Asia Future Investment Initiative Priority Summit in Hong Kong, Al-Falih took part in a symposium where he emphasized the Middle East’s pivotal role in fostering prosperity among Southern countries.
He stressed the significance of energy and digital transformation as tools for achieving development.

Diplomatic ties between the two countries span over 30 years, with China currently Saudi Arabia’s largest trading partner. Bilateral trade and investment have grown significantly in recent years.


Saudi Arabia to attend 10th UN anti-corruption conference in Atlanta on Monday

Saudi Arabia to attend 10th UN anti-corruption conference in Atlanta on Monday
Updated 10 December 2023
Follow

Saudi Arabia to attend 10th UN anti-corruption conference in Atlanta on Monday

Saudi Arabia to attend 10th UN anti-corruption conference in Atlanta on Monday

RIYADH: Saudi Arabia will participate in the 10th Conference of the States Parties to the UN Convention against Corruption on Monday in Atlanta, the Saudi Press Agency reported on Saturday.
The delegation will be headed by Mazin Al-Kahmous, president of the Oversight and Anti-Corruption Authority (Nazaha), and will comprise members from various ministries, as well as the Presidency of State Security, and the Bureau of Experts at the Council of Ministers.
Officials and experts will discuss integrity protection and anti-corruption efforts, as well as advancing commitments, policy priorities, monitoring implementation and sharing expertise.
The agenda will cover asset recovery, fostering international cooperation and adopting resolutions.
The Kingdom will propose studying methodologies and indicators for measuring corruption rates and the effectiveness of anti-corruption frameworks.
Alongside the conference, Saudi Arabia will host an exhibition highlighting its local and international anti-corruption initiatives.
It will also organize a high-level event entitled “Nazaha’s Global Initiative for Measuring Corruption,” featuring participation from relevant international organizations and civil society institutions.


AlUla to set majestic stage for Drone Champions League Super Final

AlUla to set majestic stage for Drone Champions League Super Final
Updated 09 December 2023
Follow

AlUla to set majestic stage for Drone Champions League Super Final

AlUla to set majestic stage for Drone Champions League Super Final
  • The Kingdom’s historic city will be first in GCC to host a major DCL event

JEDDAH: The Drone Champions League — billed as the “world championship for professional drone racing” — will hold its first Super Final in the heart of AlUla’s Old Town on Dec. 20.

AlUla will be the first location in the GCC to host a major DCL event, and although no physical drones will be flying there, the league said in a statement: “It will be a chance for drone sports enthusiasts to enjoy the stunning and diverse landscapes of AlUla, varying between golden canyons, lush green oasis or spectacular geological marvels.”

The league’s organizers describe it as a “global pioneer in professional virtual and real-life drone racing. With a mission to combine cutting-edge technology and stunning locations, it has created a one-of-a-kind racing series that has captivated millions around the world.”

The Drone Champions League Super Final will be held in AlUla Old Town on Dec. 20 and will converge ‘technology, athleticism, and AlUla’s vision for sports and adventure.’ (Supplied)

The DCL has rapidly gained popularity since its launch in 2016. Originally rooted in physical drone racing, DCL has evolved into a predominantly virtual format, blending hi-tec drones with the immersive world of gaming.

The annual DCL Drone Prix season features 10 teams. The competition reaches its climax with the top six teams engaging in split finals employing an elimination-style format, culminating in the DCL Super Final.

HIGHLIGHTS

• The annual DCL Drone Prix season features 10 teams.

• The league is exploring a return to real-life drone racing alongside virtual events.

The DCL has staged races in iconic locations worldwide, from the historic streets of Paris to the frozen landscapes of Norway, providing visual spectacles for the audience and challenging courses for the pilots.

“The convergence of technology, athleticism, and AlUla’s vision for sports and adventure will make this Super Final a truly exceptional and unforgettable experience,” the statement said.

Margarete Schramboeck, Aramco Digital board member

The idea to stage the Super Final in AlUla came from Margarete Schramboeck, Austria’s former minister of economy and digital affairs and a board member of Aramco Digital. Recognizing the popularity of esports in contemporary youth culture, Schramboeck felt that Saudi Arabia, more than any other nation, exemplifies this trend.

“When the DCL team approached me, presenting their world-class drone racing league and its capabilities, I immediately saw the potential for Saudi Arabia … I envisioned it as something truly exceptional,” she told Arab News.

Drones and gaming play such an important role for our next generation — they are part of digital transformation and contribute to Saudi Vision 2030.

Margarete Schramboeck, Aramco Digital board member

Saudi Minister of Investment Khalid Al-Falih provided immediate support for the idea when it was presented to him at the French-Saudi Business Forum earlier this year, she added, and put her in touch with Amr Al-Madani, CEO of the Royal Commission for AlUla.

“I was so happy my idea was supported by both. I want to thank them for making it possible,” Schramboeck added.

Markus Stampfer, DCL owner

With over 50 million viewers around the world in 2023, the DCL’s appearance in AlUla will attract attention from across the globe for the UNESCO World Heritage site, giving the tech-savvy younger generation the opportunity to delve into AlUla’s cultural heritage through their passion for gaming.

“Drones and gaming play such an important role for our next generation — they are part of digital transformation and contribute to Saudi Vision 2030. I only want to do projects which provide a clear value-add to the Kingdom on multiple levels,” Schramboeck said.

By choosing AlUla, we aim to bring the essence of this extraordinary location to a global audience, shining a spotlight on its cultural and historical importance.

Markus Stampfer, DCL owner

DCL owner Markus Stampfer told Arab News in an exclusive interview: “Our roots lie in physical drone racing and engineering, but, over time, we’ve evolved into a globally accessible esports title. This transformation aligns with the trend of Tourism 3.0, where cities and regions are visualized and digitized.

“This shift has allowed a young audience to be digitally close to World Heritage sites such as the remarkable example in AlUla,” he added. “We’ve achieved our development milestones during the past years to drive this transformation and are proud to be making DCL a global sensation.”

Stampfer also revealed that the league is exploring a return to real-life drone racing alongside virtual events. Several cities have already signed on for this initiative, and there are plans to introduce physical drone racing in Saudi Arabia in 2024.

“This marks a significant step toward achieving the ultimate goal of a hybrid global racing series, seamlessly integrating both digital and real-life experiences,” he said.

Why AlUla?
AlUla has been at the forefront of sustainable development in the Kingdom through its prestigious sports and adventure offerings, hosting numerous events including the AlUla Camel Cup, the Custodian of the Two Holy Mosques Endurance Cup, the Saudi Tour, and, more recently, AlUla Desert Blaze.

AlUla Old Town was recognized by the United Nations World Tourism Organization as one of the world’s Best Tourism Villages in 2022.

Stampfer emphasized that AlUla’s unique backdrop aligns perfectly with DCL’s vision: “It is a special honor to be in a place that is a World Heritage site, offering a unique backdrop that showcases the historical significance of the region. The league places great importance on cultural resonance and AlUla fits perfectly with our vision for creating a memorable and impactful event.

“By choosing AlUla, we aim to bring the essence of this extraordinary location to a global audience, shining a spotlight on its cultural and historical importance,” he added.

 

 


Saudi authority showcases AI advancement at Singapore conference

Saudi authority showcases AI advancement at Singapore conference
Updated 09 December 2023
Follow

Saudi authority showcases AI advancement at Singapore conference

Saudi authority showcases AI advancement at Singapore conference
  • Areeb Al-Owisheq, the AI adviser representing the authority, took part in a workshop titled “Arabic Language Models: Challenges and Opportunities”

RIYADH: The Saudi Data and AI Authority participated in the 2023 Conference on Empirical Methods in Natural Language Processing in Singapore, highlighting its groundbreaking advancements in large-language-model development.

Areeb Al-Owisheq, the AI adviser representing the authority, took part in a workshop titled “Arabic Language Models: Challenges and Opportunities” during the five-day conference, which runs until Dec. 10.

She showcased the authority’s ambitious initiatives, including the construction of expansive language models, the curation of extensive Arabic datasets, and the development of linguistic models tailored for the Arabic language.

Al-Owisheq underscored the pivotal role of safety considerations in the development of these AI models and noted that “large language models are sophisticated deep-learning constructs trained on vast datasets. Natural Language Processing, a pivotal aspect of artificial intelligence, empowers computers to comprehend, generate, and process human language, allowing effective querying of data using natural language text or speech.”

SDAIA’s participation in the conference reflects its commitment to showcasing Saudi Arabia’s advancements in data and artificial intelligence. The authority aims to position itself as a global leader in these cutting-edge technologies.

These efforts align with SDAIA’S initiatives to transfer, localize, and generate knowledge in the field of artificial intelligence, and to integrate it into the Kingdom’s digital transformation endeavors outlined in Saudi Vision 2030.

SDAIA also unveiled the Sawtak (Your Voice) system during the event. Sawtak employs generative AI techniques to convert speech into text, and, the authority says, “boasts unparalleled precision in recognizing various local dialects and surpassing existing applications in the market.”


Saudi aid chief meets World Bank Group delegation in Riyadh

Saudi aid chief meets World Bank Group delegation in Riyadh
Updated 10 December 2023
Follow

Saudi aid chief meets World Bank Group delegation in Riyadh

Saudi aid chief meets World Bank Group delegation in Riyadh
  • KSrelief signs global volunteer program agreement to achieve the goals of Saudi Vision 2030

RIYADH: Dr. Abdullah Al-Rabeeah, supervisor general of King Salman Humanitarian Aid and Relief Center (KSrelief), met with a delegation from the Executive Board of the World Bank Group in Riyadh, the Saudi Press Agency reported on Saturday.
Al-Rabeeah, who is also the adviser at the Royal Court, briefed the visiting delegation about the relief and humanitarian efforts undertaken by the Kingdom through KSrelief in various parts of the world.
He said that the center had implemented 2,625 humanitarian and relief projects in 94 countries worldwide, exceeding $6.483 billion in food security, health, education, shelter, support, and coordination of humanitarian operations, water, environmental sanitation, and protection sectors.
It has also cooperated with 175 international, regional, and local partners, he added.
Al-Rabeeah highlighted some of KSrelief’s specific projects, such as the “Masam” project to clear land mines in Yemen, the prosthetic limbs program, and the rehabilitation project for Yemeni children conscripted into war.
He discussed some implemented initiatives, such as relief and volunteer platforms and international documentation and registration, such as the Saudi aid platform, the aid platform provided to refugees in the Kingdom, the external volunteering platform, and the electronic donation platform “Sahem.”
He reviewed the efforts undertaken by Saudi Arabia in volunteer work through the center, which has conducted 514 programs in 38 countries, with more than 139,000 surgical operations performed.
The visiting delegation praised the mechanism used by the center to implement its humanitarian and relief work and its support for the work of the needy and affected people worldwide.

Meanwhile, KSrelief has signed a joint cooperation agreement with the Al-Ramdi Association in Dammam to implement volunteer programs outside the Kingdom.

The agreement was signed at the KSrelief headquarters in Riyadh, by its assistant supervisor general director for planning and development Aqeel Al-Ghamdi and Ziyad bin Abdullah Al-Suwaidan, chairman of Al-Ramdi’s board of directors.

The agreement is part of KSrelief’s efforts to support volunteer programs in a number of countries around the world, and to achieve the goals of Saudi Vision 2030, which calls for integration between various national authorities.