The Saudi Arabian Public Investment Fund (PIF) has announced the creation of a new national military industries company, wholly owned by the government, which will form a key part of Vision 2030.
Saudi Arabian Military Industries (Sami) will manufacture products and provide services across four business units: air systems - which includes maintenance and repair of fixed-wing aircraft as well as manufacturing and repair of unmanned air vehicles; land systems - which includes manufacturing and repair of military vehicles; weapons and missiles - including ammunition; and defense electronics - which includes radars and sensors as well as communication systems and electronic warfare, said a statement from PIF.
Saudi Arabian Military Industries aims to become one of the world's top 25 defence companies by 2030. It will directly contribute around SR14 billion ($3.73 billion) to the kingdom's gross domestic product (GDP) in 2030, invest over SR6 billion ($1.59 billion) in research and development by 2030, and create over 40,000 jobs, many of which will be in the engineering and technical fields, it said.
By partnering with universities, Sami will provide students with apprenticeships and careers in cutting edge technologies which were previously unavailable in the kingdom, it added.
In line with Vision 2030, Sami will contribute to diversifying the Saudi economy for the 21st century by reducing dependence on oil, while protecting and strengthening national security.
Prince Mohammad bin Salman bin Abdulaziz Al Saud, Deputy Crown Prince, Minister of Defense and chairman of PIF, said: “While the kingdom is one of the world's top five spenders on security and defence overall, only around two per cent of our military procurement is domestic.”
He emphasised that Sami will be a major contributor in achieving the goals set out in Vision 2030, which states that 50 per cent of Saudi Arabia's military procurement spending will be localised, said a statement.
Sami’s four business units closely complement the kingdom's future military requirements and build on existing local capabilities. It will establish companies through joint ventures with global original equipment manufacturers (OEMs), as well as cooperating with local military companies.
Sami will consider creating new business units, to ensure the company is aligned with the latest developments in the military industries sector, it stated. – TradeArabia News Service