Saudi Arabia inks Turkish defense deals to accelerate localization of land systems

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The Public Investment Fund-owned group signed the deals with Nurol Makina, FNSS, and Aselsan. SAMI
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The Public Investment Fund-owned group signed the deals with Nurol Makina, FNSS, and Aselsan. SAMI
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Updated 24 July 2025
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Saudi Arabia inks Turkish defense deals to accelerate localization of land systems

JEDDAH: Saudi Arabian Military Industries has signed technology transfer-focused agreements with three leading Turkish defense firms to accelerate the localization of advanced land systems manufacturing in the Kingdom.

The Public Investment Fund-owned group signed the deals with Nurol Makina, FNSS, and Aselsan under the patronage and presence of Khalid bin Hussein Al-Biyari, assistant minister of defense for executive affairs; Ahmed bin Abdulaziz Al-Ohali, governor of the General Authority for Military Industries; and Haluk Gorgun, president of Turkiye’s Defense Industries Agency, according to a statement.

Driven by Vision 2030 goals, the Kingdom is pursuing defense self-sufficiency to reduce reliance on imports. At the forefront of this transformation is SAMI, established in 2017, with a mandate to localize 50 percent of the country’s defense spending by the end of the decade through strategic partnerships and joint ventures with leading global manufacturers.

“The agreements were signed by Mohammed bin Saud Al-Hodaib, executive vice president of SAMI Land. Each of the recently signed agreements varies in scope and purpose, with the ultimate goal of localizing SAMI Land’s capabilities.” SAMI said.

It added that the first agreement with Nurol Makina focuses on technology transfer and the manufacturing of military vehicles produced by the Turkish company, while the deal with FNSS Defense Systems outlines cooperation on technology transfer and the production of armored combat vehicles and weapon turrets.

“SAMI Land will also leverage its agreement with ASELSAN (Askeri Elektronik Sanayi), for technology transfer to localize the manufacturing of combat turret systems within Saudi Arabia,” the statement said.

Technology transfer and manufacturing under these agreements will take place at the SAMI Land Industrial Complex, or SLIC, which is scheduled to begin operations in the fourth quarter of this year and will adhere to the highest international standards for land systems manufacturing.

“It will serve as a center of excellence for the manufacturing of 4x4, 6x6, and 8x8 armored vehicles, in addition to armed turrets.” SAMI said, adding that SLIC operates under Industry 4.0 standards, leveraging artificial intelligence, the Internet of Things, and robotics to carry out advanced unmanned operations managed by intelligent systems, thereby enhancing efficiency and quality without direct human intervention.

The statement said that SAMI Land is committed to advancing the company’s strategic objectives by supporting the localization of the Kingdom’s defense industries through the development of advanced industrial capabilities and the delivery of high-quality products and services across the entire product lifecycle, meeting the needs of its clients.

Al-Ohali inaugurated the Saudi pavilion at the International Defense Industry Fair, IDEF 2025, being held at the Istanbul Fair Center from July 22 to 27, as part of SAMI’s expanding global presence.

During the event, Al-Ohali met with Haluk Gorgun, where they discussed recent developments in the defense industry and explored ways to strengthen bilateral cooperation, reflecting the depth of strategic ties between the two countries and supporting the Kingdom’s aspirations for more impactful partnerships in this vital sector.

As part of GAMI’s efforts to enhance localization, the Saudi pavilion at IDEF 2025 saw Al-Esnad Factory, a leading Saudi private facility specializing in military parts manufacturing, sign three memorandums of understanding with leading Turkish companies, including MDH Makel Group, AKSA Group, and Ayyazilim Co.

“These strategic partnerships reflect GAMI’s efforts to enable the sector and transfer and localize technology,” the authority said in a post on X.

Last July, SAMI signed MoUs with Turkish firms Baykar, Fergani Space, and Aselsan to localize capabilities in drones, aerospace, and advanced electronics, further strengthening bilateral defense cooperation and enhancing the Kingdom’s industrial base.


Closing Bell: Saudi main index slips to close at 10,588 

Updated 14 December 2025
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Closing Bell: Saudi main index slips to close at 10,588 

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 127.15 points, or 1.19 percent, to close at 10,588.83. 

The total trading turnover of the benchmark index was SR2.57 billion ($685 million), as 28 of the stocks advanced and 232 retreated.    

Similarly, the Kingdom’s parallel market Nomu lost 108.53 points, or 0.46 percent, to close at 23,719.13. This comes as 22 of the stocks advanced while 47 retreated.    

The MSCI Tadawul Index lost 17.17 points, or 1.22 percent, to close at 1,393.34.     

The best-performing stock of the day was Sport Clubs Co., whose share price surged 3.69 percent to SR9.00.   

Other top performers included Flynas Co., whose share price rose 2.55 percent to SR72.30, as well as National Industrialization Co., whose share price surged 2.13 percent to SR10.09. 

Consolidated Grunenfelder Saady Holding Co. recorded the most significant drop, falling 6.61 percent to SR8.90. 

Sustained Infrastructure Holding Co. also saw its stock prices fall 5.75 percent to SR30.82. 

CHUBB Arabia Cooperative Insurance Co. also saw its stock prices decline 5.72 percent to SR22.40. 

On the announcements front, Wataniya Insurance Co. said it has received a notice of award for a one-year contract with Saudi National Bank to provide general insurance as well as protection and savings insurance services, in line with agreed terms and conditions. 

According to a Tadawul statement, coverage will begin on Jan. 1, 2026. The contract value exceeds 15 percent of the company’s total revenues, based on its latest audited financial statements for 2024.  

Wataniya Insurance Co. ended the session at SR14.35, up 1.92 percent. 

Fawaz Abdulaziz Alhokair Co., or Cenomi Retail, has announced executing a SR1.5 billion facility agreement structured as a short-term loan with Emirates NBD – Kingdom of Saudi Arabia. A bourse filing revealed that the financing duration is three years with an option to extend for a total of two years. 

Cenomi Retail ended the session at SR20.00, up 0.26 percent. 

First Milling Co. has announced the Board of Directors’ recommendation to amend the firm’s bylaws Article “Company Management” to increase the number of board members from seven to eight. This change reflects the firm’s commitment to broadening the range of expertise and skills on its board, in line with its growth and expansion plans for the next phase. 

The company reiterated its commitment to fulfilling all necessary procedures and obtaining approvals from the relevant authorities. The recommendation will be submitted to the upcoming General Assembly, with the date to be announced in due course. 

First Milling Co. ended the session at SR49.22, down 1.06 percent.