How Saudi Arabia’s SAMI is driving the localization of the Kingdom’s defense industry

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The CEO of Saudi Arabia Military Industries, Walid Abukhaled, inspects the progress of business at one of the SAMI sector of aviation and space systems in Jeddah. (SAMI photo)
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Saudi Arabia Military Industries CEO Walid Abukhaled tours a manufacturing hub of the SAMI subsidiary Aircraft Accessories and Components Co., accompanied by company CEO Mazen Johar. (SAMI photo)
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The corvette HMS Diriyah was the second corvette to be delivered to the Royal Saudi Naval Forces by Spain's Navantia company last year under a joint venture with SAMI. (Supplied)
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Updated 21 August 2023
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How Saudi Arabia’s SAMI is driving the localization of the Kingdom’s defense industry

  • Saudi Arabia Military Industries tasked with indigenization of half of Kingdom’s defense spending by 2030
  • SAMI aims to reduce Saudi Arabia’s reliance on foreign imports by building domestically and hiring locally

JEDDAH: Saudi Arabia’s defense industry is relatively new, dating back to the early 1970s. However, the country has made significant progress in recent years and is now considered a major player in the global market.

In the early years, the Kingdom’s defense sector was focused primarily on the assembly and repair of foreign-made weapons and equipment. More recently, the country has pursued self-reliance in military manufacturing.

This shift has been motivated by a number of factors, including the country’s vast oil wealth, its strategic location in the Middle East, and its desire to reduce its reliance on foreign imports.

One of the key drivers behind this burgeoning industry is the aerospace and defense company Saudi Arabian Military Industries, or SAMI — a wholly owned subsidiary of the Public Investment Fund established in May 2017.

SAMI’s goal is to localize 50 percent of the Kingdom’s defense spending by 2030. To achieve this, SAMI has established 12 joint ventures with the world’s biggest and best original equipment manufacturers.

These joint ventures have enabled SAMI to acquire the technology and expertise it needs to develop its own defense products.

“Through partnering with industry pioneers and experts, we’re making great strides towards achieving this goal,” SAMI told Arab News.




SAMI Chief Executive Officer Walid Abukhaled is briefed at one of the factories of the Intra Defense Technologies by company CEO Hamad bin Abdullah Al-Fawzan. (Photo: SAMI)

“Starting with creating opportunities for local talents and building products that are changing the game in the industry, SAMI is determined to support and empower those talents while fostering global partnerships simultaneously.

“In the five years since its establishment, SAMI has launched several innovative products such as Hazem, Mulhim, and Roaya. Those products have helped solidify Saudi Arabia’s impact and position in the defense industry globally.

“Consequently, we remain focused on developing and enhancing products by creating opportunities and building sustainable partnerships locally and internationally.”

Through its investment and partnership with Navantia, a Spanish state-owned shipbuilding company, SAMI successfully completed Al-Sarawat, a project involving five new Avante 2200 corvettes for the Royal Saudi Naval Forces with capabilities to handle air, surface, or subsurface targets.




Saudi Arabia's HMS Al-Jubail, seen arriving at the King Faisal Naval Base in Jeddah in this photo taken last year, is one of five corvettes produced in a joint venture signed in 2018 between SAMI and Spain's Navantia shipbuilding company. (Photo: Saudi Ministry of Defense)

HMS Al-Jubail and HMS Al-Diriyah are now equipped with Hazem, an integrated combat system that combines on-board weapons and sensors into one single system. It is the first combat management system to be developed by the Kingdom.

Mulhim, another battle management system developed by SAMI, is a battle management system for dismounted soldiers, stationary command centers, and mobile command centers, designed to enhance the combat capability of land formations.

Roaya, meanwhile, is a lightweight armored turret that can be armed with a 7.62 or 12.7 mm caliber machine gun or a 40 mm caliber grenade launcher.

Through partnerships with global leaders in the defense sector, SAMI has developed a range of armored vehicles, tanks, infantry fighting vehicles, fighter jets and drones, and has employed new technologies, such as artificial intelligence and autonomous vehicle technology.




SAMI has signed an agreement with UAE's EDGE group to produce the JAIS 4x4 armored personnel carrier in Saudi Arabia. (Photo: Edge Group)

Its success has not gone without notice. SAMI ranked among Defense News’ top 100 defense firms for the second year in a row, rising 19 places since last year to 79th. The company has set its sights on ranking among the top 25.

However, SAMI is not the only company contributing to the Saudi defense industry’s expansion. Others include Arabian Military Industries, Military Industries Corp. and SAMI Advanced Electronics Co., a subsidiary of the defense firm.

Much of the sector’s success is down to plentiful state investment. In 2022, Saudi Arabia ranked fifth in the world for military spending, after the US, China, Russia, and India, dedicating $75 billion to defense — accounting for 3.3 percent of global military spending.

The US led the ranking with $877 billion, or 3.5 percent of its gross domestic product. However, Saudi Arabia’s spending represents a higher share of its GDP, at 7.4 percent.

Investment in Saudi Arabia’s defense industry has multiple benefits for the country. Firstly, it helps to reduce the Kingdom’s reliance on foreign imports. This is important for national security, as it reduces the country’s vulnerability to supply chain disruptions.

Secondly, the growth of the defense sector creates high-skill jobs and opportunities for Saudi citizens. Finally, it helps to develop the country’s technological and manufacturing capabilities, leading to economic diversification and the growth of other sectors.

The boost in defense spending was first unveiled in 2016 when Crown Prince Mohammed bin Salman sat with veteran TV journalist Turki Al-Dakhil for his first-ever television interview, which covered a wide range of topics regarding the Kingdom’s future.




In this picture taken in April 2016, then Saudi Deputy Crown Prince Mohammed bin Salman, in an interview with Al Arabiya's General Manager Turki Al-Dakhil, unveiled the Kingdom's strategy to boost defense spending and develop a home-grown defense industry. (Photo courtesy of Al Arabiya/File)

“Is it reasonable that in 2014, Saudi Arabia was the largest fourth country in the world, and the largest third country in 2015 in terms of military spending; while we don’t have industry inside Saudi Arabia?” the crown prince asked during the interview.

“We have a strong demand that we should meet inside Saudi Arabia, which is the demand on the military industries.”

It was during this same interview that the crown prince alluded to establishing a holding company for military industries, “which is 100 percent for the government.” Thus, the idea of SAMI was born.

SAMI’s rapid growth since then has led to a significant increase in employment, with the company now boasting more than 3,000 employees, 84 percent of whom are Saudis, with plans to add a further 1,500 staff in the next quarter. The firm had just 63 staff in 2018.

With a view to develop local talent and expertise in the defense industry, SAMI has established a number of training and development programs to help Saudis acquire the skills and knowledge they require.

Aerospace, drone regulation and the space industry are other growing sectors in the defense market that have experienced increased investment. The government has signed contracts with several players in these fields, including Boeing, Lockheed Martin, Safran Helicopter Engines, ST Engineering, Airbus, and L3 Harris.

Its most recent signing was with Turkish company Baykar Tech to localize the manufacture of the Bayraktar Akinci drone and its component systems.

“We believe building local and global partnerships is a key factor in achieving SAMI’s goals, and being part of the Baykar Tech agreement is a huge step forward in doing so,” SAMI told Arab News.




Major General Attiyah bin Saleh Al-Malki, chief of the General Directorate of Local Manufacturing at the Saudi Ministry of Defense, and his delegation, get a briefing at the engineering hub of the Intra Defense Technologies, a local company that designs, develops, manufactures high performance and innovative unmanned aerial systems. (Intra Defense Technologies photo)

“Those partnerships help us provide local talents with the best opportunities to grow and learn.”

Indeed, to drive ahead the localization of defense jobs, SAMI has taken the lead with the Kingdom’s new Academy of Defense Industries, which will significantly contribute to SAMI’s goal of becoming the largest supporter of national human resource.

“Furthermore, having SAMI’s CEO, Eng. Walid A. Abukhaled, as the chairman of the new Academy of Defense Industries is how we can ensure those opportunities are given to the right people, as the sole purpose of this academy is to find, prepare, and introduce young talents to the defense industry sector,” SAMI added.

 


KSrelief continues humanitarian efforts in Yemen, Sudan, and Lebanon

Updated 50 min 22 sec ago
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KSrelief continues humanitarian efforts in Yemen, Sudan, and Lebanon

RIYADH: Saudi aid agency, KSrelief, continued efforts to help vulnerable individuals and families this week in Yemen, Sudan and Lebanon, the Saudi Press Agency reported on Friday.

In Yemen, KSrelief distributed 90 food packages in Lahij Governorate, and 100 tents, 270 shelter bags and 618 food parcels in Marib.

In Sudan, the agency handed out 900 food packages to the displaced and neediest families in River Nile State, benefiting 5,177 individuals.

KSrelief continued implementing the Al-Amal Charitable Bakery project in Akkar Governorate and Al-Minieh District, north of Lebanon.

In its fourth phase, the project distributed from July 18-24 about 25,000 bags of bread daily to needy Syrians, Palestinians and the host community living in Northern Lebanon, benefiting 12,500 families.


Aqabat Shaar: Iconic Saudi mountain road a lifeline for Asir’s rugged beauty

Updated 27 July 2024
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Aqabat Shaar: Iconic Saudi mountain road a lifeline for Asir’s rugged beauty

  • The road through Aqabat Shaar connects the highlands of Sarat Asir with the coastal plain of Tihama
  • It is a vital conduit for travel, commerce, and tourism, connecting communities while showcasing the natural splendor of the region

RIYADH: Nestled in the heart of Saudi Arabia's southwestern region of Asir, Aqabat Shaar is one of the most iconic highways, celebrated for its breathtaking natural scenery and vital tourist attractions.
This mountainous area, known for its rugged terrain, used to pose significant challenges to access and mobility, which led to the creation of a road that has become indispensable to residents and visitors alike, linking the region to neighboring areas and governorates.

This monumental project involved cutting through solid rock, creating 11 tunnels, and erecting 32 bridges, resulting in a road approximately 14 kilometers long. (SPA)

A mere 23 kilometers from Abha city, the road through Aqabat Shaar connects the highlands of Sarat Asir with the coastal plain of Tihama. This crucial artery not only reduces travel time, but also plays a pivotal role in bolstering tourism in the region. Furthermore, it enhances the Kingdom’s standing as a global logistics hub by facilitating the seamless movement of trucks transporting a wide array of goods.
The construction of Aqabat Shaar began over 40 years ago, under the reign of the late King Fahd bin Abdulaziz. This monumental project involved cutting through solid rock, creating 11 tunnels, and erecting 32 bridges, resulting in a road approximately 14 kilometers long. The endeavor was a marvel of engineering at the time, designed to navigate the challenging topography and ensure reliable access.
The road recently underwent significant development to enhance its utility and safety. The Roads General Authority spearheaded a comprehensive maintenance project incorporating the latest international technologies and standards. This effort entailed a temporary closure of the road, which reopened last year to much acclaim.

Aqabat Shaar is not just a road, it is a testament to human ingenuity. (SPA)

The recent maintenance work on Aqabat Shaar focused on achieving the highest standards of quality and safety. Enhancements included the installation of modern lighting, clear road markings, informative signs, and warning vibrations. Additionally, concrete barriers were erected to improve road safety, ensuring that the road meets the increasing demands of the region’s expanding network.
Aqabat Shaar is not just a road; it is a testament to human ingenuity and determination carving a path through some of the most formidable terrain in Asir. It is a vital conduit for travel, commerce, and tourism that serves and connects communities while showcasing the natural splendor of the region.
As it evolves with ongoing developments, Aqabat Shaar remains a beacon of progress, illuminating the way forward for Asir's dynamic future.
 


ThePlace: Wadi Wajj, Taif’s historic water oasis

Updated 27 July 2024
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ThePlace: Wadi Wajj, Taif’s historic water oasis

  • Once a geographical divider splitting the city of Taif in two, it has evolved into a popular tourist destination

TAIF:  Wadi Wajj, a revered valley in Saudi Arabia's western governorate of Taif, boasts a rich tapestry of history and natural beauty.

Once a geographical divider splitting the city of Taif in two, it has evolved into a popular tourist destination renowned for its lush gardens, vibrant orchards, and breathtaking panoramas.
Professor Saleh Al-Khalif, an expert in Islamic history and civilization, said Wadi Wajj's has played a vital role in agriculture and its proximity to Makkah accounts for its historical significance.

Wadi Wajj's abundant springs provide a constant water supply throughout the year. (SPA)

The region's ancient irrigation systems, including hundreds of springs and wells, are a testament to its innovative water management practices.
Wadi Wajj's water resources have been instrumental in the area's development, fostering agriculture and infrastructure.

The valley's enduring springs continue to irrigate farms and support the local economy, underscoring its enduring importance to Taif.
 


Saudi Arabia joins 80 countries in historic deal on e-commerce

Updated 26 July 2024
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Saudi Arabia joins 80 countries in historic deal on e-commerce

  • First digital global rules include recognition of e-signatures and protection against online fraud
  • The agreement also includes a component providing preferential treatment to developing countries

JEDDAH: About 80 countries including Saudi Arabia reached a historic agreement on Friday on rules governing global digital commerce, including recognition of e-signatures and protection against online fraud.

“We negotiated the first global rules on digital trade,” EU trade chief Valdis Dombrovskis said after the deal in Geneva following five years of negotiations.“This will facilitate e-transactions, boost innovation, and integrate developing countries into the digital economy,” he said.

Britain said the agreement would commit all participants to making customs documents and processes digital and recognizing e-documents and e-signatures, and put in place legal safeguards against online fraudsters and misleading claims about products.

Once in place, the deal “will make trade faster, cheaper, fairer and more secure,” Britain said in a statement.

The text of the agreement says the parties will seek to limit spam and protect personal data, as well as offer support to least-developed countries.
Ninety-one of the World Trade Organization’s 166 members took part in the negotiations, including Saudi Arabia, China, Canada, Argentina and Nigeria.
Digital commerce is growing far faster than its traditional counterpart.
The OECD group of economically developed nations says it estimated that in 2020, e-commerce already made up a quarter of global trade, making it worth just under $5 trillion.
Despite its growing importance, “no common set of global rules exist,” said British Trade Secretary Jonathan Reynolds.
Finalizing the negotiations “is a huge step forward in correcting that and ensuring British businesses feel the benefit.”

The talks were launched in 2019, with around 90 negotiating countries — representing 90 percent of the WTO membership — including heavy-hitters like the United States, the European Union and China.
Australia, Japan and Singapore, which have jointly been leading the Initiative on Electronic Commerce talks, presented a joint statement during a closed-door meeting at the WTO confirming that “after five years of negotiations, participants had achieved a stabilized text.”
But actual implementation of a deal could still be years off.
A small number of negotiating countries have yet to sign on, including the United States, Brazil, Indonesia and Turkiye, the declaration said.
“The text released today ... represents an important step forward for the WTO in a sector of growing importance to the global economy,” US ambassador and Deputy US Trade Representative Maria Pagan said in a statement.
But the United States considers that “the current text falls short and more work is needed,” she said, pointing in particular to an “essential security exception.”
The co-conveners of the talks have in recent months stressed the importance of landing a deal, stressing it could facilitate electronic transactions, promote digital trade and foster an open and trusted digital economy.
“This would be the first-ever set of baseline digital trade rules,” Singapore’s ambassador to the WTO Tan Hung Seng said in April.
“It would contribute to the growing e-commerce in our countries by providing greater legal predictability and certainty, against the backdrop of increasing regulatory fragmentation,” he said.
In Friday’s statement, UK Science Secretary Peter Kyle said the agreement aimed “to help people use technology safely by protecting them from fraud, while driving economic growth through the digitalization of trade so it’s faster and more secure.”

Preferential treatment

The agreement also includes a component providing preferential treatment to developing countries.
In addition to paving the way for digitalising customs documents and processes, the text also seeks to make permanent a long-held moratorium exempting electronic transactions from customs duties.
The moratorium has been in place since 1998, and has been extended at each WTO ministerial meeting since. It is currently set to expire in 2026.
“Once in force the agreement will permanently ban customs duties on digital content,” the British statement said.
The aim is to incorporate the digital trade rules into the WTO legal framework, but that would require consensus backing from all members, including those not part of the deal.
That could be tricky at a time when countries like India and South Africa are balking at what they see as a proliferation of plurilateral agreements within the WTO rather than the all-but-impossible multilateral deals backed by all members.
One solution, observers say, could be for the signatories to move the agreement to another international body. But if they do that, they would not be able to rely on the WTO’s mechanism for resolving trade disputes.

(With Agencies)


Saudi ballet star, 18, dances to inspire dreams

Updated 27 July 2024
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Saudi ballet star, 18, dances to inspire dreams

  • Halaa Nagadi desires to represent Kingdom on world stage
  • Hopes others ‘embrace this beautiful and expressive art form’

RIYADH: Saudi Arabia ballet dancer Halaa Nagadi, 18, is captivating audiences with her unwavering passion and hopes others would be inspired to “embrace this beautiful and expressive art form.”

She is currently preparing for the 2024 Dubai International Dance Competition set to start on Nov. 17 that will have professional and amateur dancers participating from all over the world.

“I became interested in ballet when I was on a journey to find a dance form that truly resonated with me,” Nagadi told Arab News. “The way ballet dancers could convey such powerful emotions and narratives through their bodies was simply captivating.”

Halaa Nagadi is currently preparing for the 2024 Dubai International Dance Competition set to start on Nov. 17 that will have professional and amateur dancers participating. (Supplied)

From a young age, Nagadi was mesmerized by the graceful movements and emotive storytelling of ballet, and she has pursued her dream with determination.

“One of my greatest goals is to represent Saudi Arabia on the international ballet stage,” Nagadi said. “I want to showcase the talent and artistry that exists within our country, and inspire others to embrace this beautiful and expressive art form.”

FASTFACTS

• Though ballet may not have been a typical path for a young Saudi Arabia woman, Nagadi was undeterred.

• She immersed herself in studying ballet, first through online videos and then by seeking out local and international training opportunities.

Though ballet may not have been a typical path for a young Saudi Arabia woman, Nagadi was undeterred. She immersed herself in studying ballet, first through online videos and then by seeking out local and international training opportunities.

“Balancing my studies in tourism and event management at King Abdulaziz University with my rigorous ballet training has not been an easy task,” Nagadi revealed.

“But I’ve remained steadfast in my pursuit, spending four to eight hours each day honing my skills, whether it’s at the ballet studio or the gym, ensuring that I am constantly improving and pushing the boundaries of my craft.”

Nagadi’s journey has not been without its challenges, however. Finding suitable ballet facilities in Saudi Arabia has been a significant hurdle, and sourcing specialized equipment is proving to be an ongoing obstacle, she explained.

Undaunted, Nagadi has sought out opportunities abroad, including a summer program in Romania and a ballet performance opportunity in Turkiye.

“I also took a masterclass for professional dancers from the principal of the Royal Ballet in London,” she added.

Nagadi’s dedication and passion have not gone unnoticed locally. “I have received the support of the Saudi Ministry of Culture, who have provided me with opportunities to showcase my talents at local events, such as the Taif Rose Festival and a theatrical performance that fused Arabic music with ballet,” she said.

As Saudi Arabia’s arts and culture scene continues to evolve, the ballet talent envisions a future where the dance form will flourish and draw audiences from across the Kingdom.

“I believe the ballet scene in Saudi Arabia will only continue to grow and develop,” she said. “More and more people are becoming interested in learning and practicing this art form.”

Nagadi’s unwavering determination has not only earned her recognition within the Saudi Arabia arts community but has also inspired a new generation of young people to explore the world of ballet.

Her story is a reminder that with hard work, dedication, and a willingness to challenge societal norms, anything is possible.