ABU DHABI: State-owned Saudi Arabian Military Industries (SAMI) aims to generate $10 billion in revenue over the next five years, its chief executive said on Monday, as the wealth fund-backed group spearheads a drive to localize military spending.
SAMI, owned by the Public Investment Fund, wants exports to account for 30 percent of its revenue by 2030, Chief Executive Andreas Schwer told Reuters at a defense event in Abu Dhabi.
The company, established in May 2017, seeks to localize 50 percent of military spending by 2030 as part of Crown Prince Mohammed bin Salman’s plan to diversify the kingdom’s economy away from oil revenue.
“By 2030 SAMI will be more than just a regional player. We will be a truly global player, to be among the top 10 companies,” Schwer said. “We won’t serve only the domestic market. We will generate 30 percent of revenues from export markets by 2030.”
He said Saudi Arabia has a $70 billion annual defense budget plus a $30 billion security-related budget from other ministries.
Schwer said SAMI had signed 19 joint venture deals with companies from Western Europe, the United States, Asia and South Africa since 2018 and planned to sign 25 to 30 more in the next five years.
Schwer said SAMI would not do business with Russia due to US sanctions. “SAMI as an entity will not do any business with any country or company which is falling under embargo or sanctions,” he said.
SAMI also planned to build a company in the Kingdom as part of a joint venture with Abu Dhabi state investor Mubadala to build aircraft components for commercial and military uses. A foreign partner could join the venture.
“We are looking to acquire other existing assets as a technology provider,” Schwer said.
Saudi Arabia’s military company eyes $10 billion revenue in next five years
Saudi Arabia’s military company eyes $10 billion revenue in next five years
- SAMI wants exports to account for 30 percent of its revenue by 2030
- The company, established in May 2017, seeks to localize 50 percent of military spending by 2030
Acwa signs key terms to develop 5GW of renewable energy capacity in Turkiye
JEDDAH: Saudi utility giant Acwa has signed key investment agreements with Turkiye’s Ministry of Energy and Natural Resources to develop up to 5 gigawatts of renewable energy capacity, starting with 2GW of solar power across two plants in Sivas and Taseli.
Under the investment agreement, Acwa will develop, finance, and construct, as well as commission and operate both facilities, according to a press release.
The program builds on the company’s first investment in Turkiye, the 927-megawatt Kirikkale Independent Power Plant, valued at $930 million, which offsets approximately 1.8 million tonnes of carbon dioxide annually, the statement added.
A separate power purchase agreement has been concluded with Elektrik Uretim Anonim Sirketi for the sale of electricity generated by each facility.
Turkiye aims to boost solar and wind capacity to 120GW by 2035, supported by around $80 billion in investment, while recent projects have already helped prevent 12.5 million tonnes of CO2 emissions and reduced reliance on imported natural gas.
Turkiye’s energy sector has undergone a rapid transformation in recent years, with renewable power emerging as a central pillar of its strategy.
Raad Al-Saady, vice chairman and managing director of ACWA, said: “The signing of the IA (implementation agreement) and PPA key terms marks a pivotal moment in Acwa’s partnership with Turkiye, reflecting the country’s strong potential as a clean energy leader and manufacturing powerhouse.”
He added: “Building on our long-standing presence, including the 927MW Kirikkale Power Plant commissioned in 2017, this step elevates our partnership to a new level,” Al-Saady said.
In its statement, Acwa said the 5GW renewable energy program will deliver electricity at fixed prices, enhancing predictability for grid planning and supporting long-term industrial investment.
By replacing imported fossil fuels with domestically generated clean energy, the initiative is expected to reduce Turkiye’s exposure to global energy market volatility, strengthening energy security and lowering long-term power costs.
The company added that the economic impact will extend beyond the anticipated investment of up to $5 billion in foreign direct investment, with thousands of jobs expected during the construction phase and hundreds of high-skilled roles created during operations.
The energy firm concluded that its existing progress in Turkiye reflects a strong appreciation for Turkish engineering, construction, and manufacturing capacity, adding that localization has been a strategic priority, and it has already achieved 100 percent local employment at its developments in the country.
