Kingdom Holding buys 7% of Careem ride app

Updated 15 June 2017
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Kingdom Holding buys 7% of Careem ride app

RIYADH: Saudi Arabia’s Kingdom Holding Co. said Thursday it has bought a stake in car ride-hailing business Careem, its latest venture in the booming sector.
Kingdom Holding, chaired by Prince Alwaleed bin Talal, acquired a seven percent share in the firm, valuing the transaction at $62 million.
Dubai’s Abraaj Group said in a separate statement that it has divested its shareholding in Careem.
It did not give the size of the stake but confirmed it has been acquired by Kingdom Holding, a diversified Riyadh-based global investor.
The firm has stakes in a variety of sectors, including banking, through Citigroup, and media with Time Warner.
In 2015, Kingdom Holding invested more than $100 million in Lyft, a San Francisco-based rival to another US-based ride-hailing operation, Uber, which is a smartphone app that connects passengers and drivers.
“Our investment in Careem is a continuation of our strategy to invest in new technologies,” as it has already done with Lyft and stakes in Twitter and JD.com, Kingdom Holding’s CEO Talal Al-Maiman said in a statement.
“Careem sets an example for regional businesses by providing employment opportunities to locals and developing talent,” he said.
Car booking apps are popular in Saudi Arabia.

Diversification
As part of a wide-ranging plan to diversify its economy and give more jobs to Saudis, the Kingdom is trying to develop its digital infrastructure and broaden its investment base.
In December, the largest Saudi telecommunication firm, STC, said it would buy a 10 percent stake in Careem for $100 million.
Uber announced in June last year that Saudi Arabia’s Public Investment Fund would inject $3.5 billion to help the app’s global expansion.
Rival Careem operates in the Middle East and surrounding region.


SAMI CEO: Advancing toward integrated, sovereign Saudi defense industry

Updated 5 sec ago
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SAMI CEO: Advancing toward integrated, sovereign Saudi defense industry

RIYADH: Saudi Arabian Military Industries is accelerating its push to deliver its 2030 strategy, aiming to anchor a sustainable national defense base built on deeper localization, advanced technology transfer and development, and an integrated industrial ecosystem spanning Saudi Arabia’s defense and security sectors.

SAMI CEO Thamer Al-Muhid said the next phase marks a decisive shift in SAMI’s trajectory, from building capabilities to full industrial enablement, to strengthen self-sufficiency, readiness, and defense sovereignty in line with Saudi Vision 2030.

Speaking to Asharq Al-Awsat, Al-Muhid said the strategy translates into developing and supporting defense industries inside the Kingdom, boosting self-reliance and playing a central role in meeting the Vision 2030 goal of localizing 50 percent of defense spending. That target, he said, will directly boost the armed forces’ readiness and operational capacity.

On the sidelines of the recently concluded World Defense Show in Riyadh, he described the coming stage as a qualitative leap from foundation-building to broad-based defense industrial expansion, reinforcing the Kingdom’s long-term defense readiness and sovereignty.

Sources of strength

Al-Muhid said SAMI’s strength lies in its structure as an integrated national entity operating under a distinct business model that brings together specialized Saudi companies, qualified national talent, flexible domestic supply chains and strategic partnerships with major global firms.

That integration enables the group to convert national objectives into tangible industrial output and defense products manufactured in the Kingdom, supporting national security and the long-term sustainability of the military industries sector.

World Defense Show participation

Al-Muhid said SAMI’s presence at the World Defense Show underscores the maturity of its defense ecosystem, operating across specialized and complementary sectors including aerospace, land and naval systems, unmanned systems, advanced electronics, munitions and professional services.

The ecosystem covers the full value chain, from design and development to manufacturing, integration, support and sustainment.

The message from Riyadh to partners and international markets is clear, he said, adding that Saudi Arabia now has a sovereign industrial base, trusted national capabilities and expanding supply chains operating to global standards.

SAMI has become a strategic partner capable of delivering sustainable defense solutions that enhance national security and open new avenues for industrial cooperation with leading global defense companies, he stressed.

Local content

SAMI’s Local Content Program, known as Rukn, is designed to organize and expand the role of national suppliers within the defense industries ecosystem, he went on to say.

The program goes beyond raising localization ratios, focusing on building sustainable domestic supply chains that meet defense industry standards for quality, reliability and continuity, Al-Muhid explained.

It seeks to empower local suppliers, particularly small and medium-sized enterprises, through qualification, knowledge transfer and direct integration into SAMI projects and subsidiaries, he added.

The initiative also deepens domestic supply chains by localizing components, services and industrial processes inside the Kingdom and integrating suppliers across the full value cycle, raising local content and improving sector efficiency, he continued.

Al-Muhid said SAMI acts as a key enabler and driver of local content, expanding its base through projects and partnerships within an integrated national framework to lift localization rates across the sector, not just within the company.

Industrial enablement

Al-Muhid said SAMI has moved beyond technology transfer to full industrial enablement by building an integrated defense ecosystem led by specialized national companies, each with a defined sectoral role under a model that combines operational independence with group-wide integration.

Each subsidiary operates with flexibility and autonomy within a centralized governance framework and overarching strategy set by SAMI, ensuring alignment across the group.

He said SAMI Land Systems serves as a national arm in the design and manufacture of combat vehicles, artillery systems and armored platforms, as well as advanced protection solutions and integrated maintenance and logistics services.

SAMI Aerospace provides maintenance, repair and overhaul services for aerospace systems, focusing on support for the Royal Saudi Air Force, and has achieved 75 percent local content, revealed AlMuhid. It also signed an agreement with SKYFive Arabia to install air-to-ground connectivity systems on flynas aircraft, becoming the exclusive regional partner in this field.

SAMI Advanced Electronics designs and develops command and control systems, cybersecurity, electronic warfare and sensor technologies within an integrated framework to protect digital infrastructure.

SAMI Autonomous Systems specializes in autonomous systems and unmanned aerial, naval and land platforms.

In munitions, SAMI Munitions leads an industrial complex project that has surpassed 60 percent localization and created more than 1,200 jobs. It has also signed a contract with the Ministry of National Guard to sustain systems and weapons in support of higher local content.

Al-Muhid said SAMI’s international partnerships are structured to ensure technology transfer, localization of operations and national capacity building, backed by clear governance and performance indicators to secure a shift from assembly to full manufacturing.

Largest integrated facility

Al-Muhid said the SAMI Industrial Complex for Land Systems, operated in line with Fourth Industrial Revolution requirements, is the largest integrated facility of its kind in the Middle East and North Africa.

The 82,000 sq. meter plant sits within a 1 million sq. meter industrial zone and relies on automation, artificial intelligence, the Internet of Things and industrial robotics to raise production efficiency and enhance product quality to global standards.

The complex provides more than 1,000 specialized jobs for Saudis. Among its flagship outputs is the HEET project, which fully designs and manufactures armored vehicles inside the Kingdom, reflecting local control of the industrial value chain.

Challenges

Al-Muhid said complex defense technologies, tightly linked global supply chains and the need to accelerate the development of specialized talent remain key challenges.

SAMI has approached them as opportunities to reshape the defense industrial model by localizing integration and operations, developing local suppliers as qualified industrial partners and building national talent within projects to ensure sustained expertise.

Human capital is central to that effort, he said. By the end of 2025, SAMI employed more than 7,000 people, 73 percent of them Saudi nationals, with women accounting for 12 percent.

The group delivered more than 400,000 training hours to over 3,000 employees and hired more than 2,200 new staff under a structured pathway spanning early recruitment, specialized qualification, hands-on factory training and enabling Saudis to work in advanced industrial environments and transfer knowledge.

Industrial enablement at SAMI is no longer a future ambition but an operational reality, Al-Muhid said, strengthening the Kingdom’s defense sovereignty and boosting the competitiveness of its products regionally and internationally in line with Saudi Vision 2030.