‘Saudi defense sector to contribute $61.6bn to GDP by 2020’

Saudi Arabia announced a military budget of SR191 billion in 2019. (
Updated 18 March 2019
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‘Saudi defense sector to contribute $61.6bn to GDP by 2020’

  • 2.52 million private sector jobs would be generated in public administration and defense by 2028
  • Cybersecurity was one of the fastest growing segments in the sector

RIYADH: The Saudi defense industry will experience strong growth in the next decade, according to a report.

The report titled “Defense, Security, and Aerospace,” which was published by the US-Saudi Arabian Business Council (USSABC), said the sector was expected to contribute SR231.27 billion ($61.6 billion) to the national gross domestic product by 2020 and that 2.52 million private sector jobs would be generated in public administration and defense by 2028.

The report also said cybersecurity was one of the fastest growing segments in the sector.

“Historically, the Saudi defense sector has proven lucrative for foreign defense contractors given that the country is among the leading arms importers with growing domestic capabilities,” Abdullah Jum’ah, co-chair of the USSABC and former CEO of Saudi Aramco, told Arab News on Monday.

“In the coming years, we expect the Kingdom to progress toward the localization objectives of the Vision 2030 reform plan while still expanding opportunities for the private sector across training services, cybersecurity, and command and control segments,” he added.

US firms have supplied the largest number of defense articles to the Saudi armed forces, the report said.

Saudi Arabia announced a military budget of SR191 billion in 2019, the report said, with defense and military accounting for 17.3 percent of the Kingdom’s total SR1.11 trillion spending plans.

The report is one in a series of in-depth publications from USSABC that highlights new economic trends and opportunities in Saudi Arabia.

Previous reports have focused on industries of strategic growth for the Kingdom such as healthcare, infrastructure development, and labor localization.


Saudi space technology plays growing role in conflict and disaster zones: NSG executive

Hassan Al-Johani, vice president of business development at Neo Space Group, speaks to Arab News at the World Defense Show.
Updated 7 sec ago
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Saudi space technology plays growing role in conflict and disaster zones: NSG executive

  • Company analyzes damage from natural disasters, including flash floods

RIYADH: Saudi-built space systems are moving beyond data collection to play a direct role in operational decision-making, particularly in high-stakes situations like conflict zones and natural disasters, according to one industry executive.

Hassan Al-Johani, vice president of business development at Neo Space Group, spoke on the sidelines of the World Defense Show in Riyadh, which has Arab News as a media partner, about how the company’s technology is used in real-life scenarios.

Al-Johani pointed to disaster management as an example of how integrated space services can directly influence outcomes on the ground.

The company uses high-resolution Earth observation imagery in optical, radio and infrared spectrums, to analyze damage from natural disasters, including flash floods.

He said this information can then be turned into actionable intelligence and shared directly with teams operating in affected areas, allowing them to assess damage to roads and determine the best routes for delivering equipment and emergency aid.

“We can utilize that in geospatial intelligence and communicate it to teams in the field using advanced satellite communications,” Al-Johani said.

The company’s satellite technology allows people to communicate in crisis-hit areas when traditional communication infrastructure has been damaged.

He added: “Even when communication fails, even when there’s disruption in infrastructure, we have the ability to understand what has happened, but also communicate it to people (who) need to take decisions in real time to save lives and property.”

Demonstrations at the World Defense Show, he said, were designed to show how this integrated approach worked in practice.

“We are not promoting one domain or one technology, but rather a unified architecture that brings together the best of the latest technologies,” he said.

The company’s technology has military uses, allowing users to determine the best locations for deploying troops and equipment, and its satellite technology allows secure communications in war zones.

He also highlighted the technical design choices behind ensuring continuity of service, particularly in contested or disrupted environments.

Artificial intelligence, he added, is increasingly part of the company’s system.

“We’re not utilizing just traditional geospatial intelligence, but rather AI-powered intelligence,” Al-Johani said.

This layered approach, he explained, is intended to reduce dependence on any single system or data source.

He added: “If one layer fails, then you have other layers to supplement and ensure the continuity of the value delivered to the clients.”

Beyond technology, Al-Johani said discussions at the World Defense Show reflected a broader shift in how Saudi Arabia approaches the space and defense sectors.

“Saudi Arabia has demonstrated that we are not looking to be buyers, but rather partners and builders,” he said.

“That means that we have to have an engaging dialogue with partners from around the world, understanding which parts of the ecosystem we need to build on.”

He said this approach ultimately supported local capability building and long-term sector development, adding that it was targeted at “finding a meaningful partnership that delivers win-win for everyone, (and) ultimately contributes to building this country, this industry and the space sector.”