SAMI’s new ‘Center of Excellence’ to be up and running by 2025

SAMI CEO Walid Abukhaled speaking to Arab News (AN)
Short Url
Updated 23 February 2023
Follow

SAMI’s new ‘Center of Excellence’ to be up and running by 2025

RIYADH: Saudi Arabia is set to create hundreds more jobs in the defense sector as Saudi Arabian Military Industries' new ‘Land System Center of Excellence’ becomes operational in the next two years, the company’s CEO told Arab News.

Speaking exclusively on the sidelines of the International Defence Exhibition in Abu Dhabi, Walid Abukhaled said the latest project by the company is designed to boost the defense industry in Saudi Arabia.

“What we announced is the design phase of the facilities. We have got board approval, we have got the support, and we are moving forward with our plan,” he said. 

The SAMI CEO said the latest center will focus on developing land system vehicles including four-by-fours, six-by-sixes, and eight-by-eights.

The center is part of the drive to make SAMI one of the top 25 defense companies globally by 2030 – an ambition that is increasingly likely thanks to the support from the leadership of the Kingdom, according to Abukhaled.

Last year, the firm joined forces with global firm Lockheed Martin to begin work on a Composites Manufacturing Center of Excellence to boost Saudi Arabia’s aerospace manufacturing capabilities.

During the interview, he expressed his gratitude to Crown Prince Mohammed bin Salman and said that his Vision 2030 is the driving factor behind SAMI’s growth. 

“Only after four years of operationalizing SAMI’s operation, we managed to be one of the top 100 defense companies in the world. We are number 96. Company number 100 is Embraer which was established in 1969. Our ultimate objective is to be a top 25 defense company by 2030,” said Abukhaled. 

He added: “We have a clear roadmap. The target is 2030, absolutely. And the challenge, can we beat it? Can we beat the date and make it happen before 2030?“ 

According to Abukhaled, the government, the military and all the armed forces are working together to help SAMI achieve this target. 

He further noted that SAMI has hired some of the best local talents, along with international experts who have first-hand knowledge about the defense sector, and this has played a crucial role in determining the success of the company in a very short period of time. 

The SAMI CEO added that the firm is eyeing 50 percent of localization in defense spending by 2030. 

He further pointed out that space is going to play a crucial role in enhancing the communication system in the defense sector. 

“Space will play a key role in communication. And under our advanced electronic divisions, we have communication systems, and that communication can happen through space, or through a normal waveform, ground to ground. So, we are working on how to communicate with satellites, and that will be under our advanced electronics division,” he said. 

Abukhaled revealed that SAMI is also working on new technologies like artificial intelligence and autonomous vehicle technology to further grow in the defense sector. 

“We have a chief technology officer. There is a function called emerging technologies, where the main objective and purpose is to look at the trends in technology and look 20 and 30 years ahead. So, absolutely there is a focus on advanced technology,” said Abukhaled. 

He added: “Autonomy is not an option any more. It is coming. That is the future. Airplane will fly without pilots. Ships will sail without a captain, and for land vehicles, you will not need drivers. The machines have proven that they can. They are more reliable and they do not make mistakes. Of course, you need to put the right option in them to make it reliable.” 


Saudi investment hits 32% of GDP, non-oil fixed capital reaches 40%, minister says

Updated 05 January 2026
Follow

Saudi investment hits 32% of GDP, non-oil fixed capital reaches 40%, minister says

RIYADH: Saudi Arabia’s investment now accounts for 32 percent of gross domestic product, with non-oil fixed capital at 40 percent, according to the minister responsible for portfolio.

Speaking during his visit to the Shoura Council, Khalid Al-Falih said that foreign direct investment is expected to grow fivefold, signaling strong Vision 2030 progress.

“Regarding cumulative performance, the Kingdom has exceeded all expectations, achieving high levels of investment,” Al-Falih said, according to a video posted on Al-Ekhbariya’s X account focused on economic matters.

The minister added: “Today, investment accounts for 32 percent of the total GDP. In terms of non-oil GDP, fixed capital represents 40 percent, compared with 41 percent in China, the highest globally.”

If we take the non-oil GDP, he said, fixed capital will make 40 percent. “China is the largest globally with 41 percent. So, we will rank second if we compare it to the non-oil economy and fourth when measured against total GDP,” Al-Falih said.

He emphasized that the Kingdom offers an investment-attractive environment, noting that when focusing on foreign direct investment rather than overall investment, Saudi Arabia ranks among the world’s highest.

The minister of investment added that FDI is expected to grow fivefold by the end of 2025, though these data require confirmation, stressing that this is “a big indicator for the success of Saudi Vision 2030.”

During his address to the session, Al-Falih emphasized that Saudi Vision 2030 prioritizes economic diversification and reducing dependence on oil, through boosting the private sector’s contribution to inclusive economic development, supporting national sectoral priorities, and driving growth in the Kingdom’s GDP.

He highlighted key initiatives enabling the private sector, including the establishment of the Ministry of Investment and the Saudi Investment Promotion Authority, the launch of the “Shareek” program, the development of the National Investment Strategy, and linking all stakeholders in the investment ecosystem.

“The Cabinet’s adoption of the National Investment Strategy, launched by Crown Prince in 2021 and implemented in 2022 as a comprehensive national framework, has played a major role in positioning investment as a driver of economic growth,” he said.

Al-Falih revealed that the ministry has identified more than 2,000 investment opportunities worth over SR1 trillion ($267 billion), noting that 346 of these opportunities have been converted into closed deals valued at over SR231 billion through the “Invest Saudi” platform.

He also highlighted the success of the regional headquarters attraction program, with licenses issued to more than 700 global companies by the end of 2025, surpassing the 2030 target of 500 companies, across diverse sectors that reinforce Saudi Arabia’s role as a regional business hub.

The minister revealed that active investment licenses have grown tenfold, rising from 6,000 in 2019 to 62,000 by the end of 2025, highlighting the role of companies in creating over one million jobs, including numerous positions for Saudi nationals.

Al-Falih noted the Kingdom’s success in attracting 20 of the world’s top 30 banks, as part of efforts to strengthen the presence of leading asset managers and international banks in support of the Saudi banking sector.

He also discussed reforms to enhance the business environment, such as the Civil Transactions Law, Companies Law, and the updated Investment Law issued in mid-2024, which contributed to Saudi Arabia moving up 15 places in the global competitiveness ranking.

The minister also announced the update of the National Investment Strategy in 2025, focusing on quality, productivity, and directing investments toward sectors with the highest economic impact, while developing financing solutions for SMEs.