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.


Experts clash over effect of war on oil supply

Updated 06 March 2026
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Experts clash over effect of war on oil supply

  • International energy chief dismisses crisis fears * But Qatari minister warns exports could halt ‘in weeks’

BRUSSELS: International Energy Agency chief Fatih Birol on Friday dismissed fears of a global oil crisis, and said there was “plenty of oil in the market.”
But he was contradicted by Qatar’s Energy Minister Saad Al-Kaabi, who said Gulf oil producers could halt exports within weeks because of the US-Israel-Iran war, sending crude prices to $150 a barrel.

The war on Iran and Tehran’s retaliatory attacks across the Gulf have already sent crude prices soaring by about 20 percent, fanning fears of a fresh spike in inflation that could hit the global economy. Shipping through the critical Strait of Hormuz has all but dried up.
US President Donald Trump has pledged to protect ships passing through and promised further action to “reduce pressure on oil,” but prices have remained elevated. Brent crude, the global benchmark, was up 2.77 percent on Friday to nearly $88 a barrel.

However, Birol said: “There is plenty of oil, we have no oil shortage. There is a huge surplus in the market. We are facing a temporary disruption, a logistical disruption.”

Nevertheless, Al-Kaabi insisted there would be pressure on oil supplies “in two to three weeks” if tankers were unable to pass through the Strait.

“Everybody that has ​not called for force majeure we expect ⁠will do so in the next ​few days that this continues. All exporters in ​the Gulf region will have to call force majeure,” he said. “Everybody's energy price is going to go higher. There will be shortages of ​some products and there will be a chain reaction of factories that cannot supply.”

Qatar halted its liquefied natural gas production on March 2, as Iranian retaliation for US and Israeli strikes continued to target Gulf countries.