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Saudi Arabia to Boost its Local Defense Industry

Feb 28, 2018

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Saudi Arabia is looking to bolster its local defense industry. Referring to the participation and achievements of the Saudi Arabian Military Industries (SAMI), the state-owned Saudi defense company, Dr. Andreas Schwer, SAMI chief executive, said that SAMI intends to localize 50 percent of government military spending, and become one of the top 25 military industry companies in the world. “With a strategic framework in place, SAMI aims to contribute around SR14 billion directly to Saudi Arabia’s gross domestic product (GDP), increase the value of national exports by about SR5 billion, invest over SR6 billion for research and development, and create over 40,000 direct jobs locally, by the year 2030,” he added.

“Saudi Arabia is one of the top five countries in the world in terms of military spending, and the establishment of SAMI was an ambitious step as part of the country’s strategy to localize and globalize its military manufacturing industry.”

Referring to the possibilities of Turkish tie-up with Saudi companies, especially SAMI, Prof. Demir said the two countries are seeking and exploring joint production opportunities and deepening the already strong cooperation within the framework of Saudi Vision 2030, the roadmap for the kingdom’s development and economy objectives for the next 15 years.

As a result of large investments in the defense industry of Turkey, the number of the country’s defense projects has reached 600 at a size of $60 billion, and the defense industry has reached a production capacity of more than $6 billion per year and an export capacity of $2 billion as of today, according to arabnews.com.

Turkey, from its part, has shown keen interest in working closely with Saudi Arabia to build Saudi defense capabilities and help the Kingdom to develop an indigenous defense industry, and to design as well as manufacture defense platforms, products and technology. This was disclosed by Turkish Ambassador Erdogan Kok.