Saudi Arabia has launched new military industries company ‘Saudi Arabian Military Industries (SAMI)’, Saudi Arabian Public Investment Fund (PIF) announced Thursday.
SAMI will manufacture products and provide services across four business units: Air Systems, which includes maintenance and repair of fixed-wing aircraft as well as manufacturing and repair of unmanned air vehicles; Land Systems, which includes manufacturing and repair of military vehicles; Weapons & Missiles - including ammunition; and Defense Electronics, which includes radars and sensors as well as communication systems and electronic warfare.
Deputy Crown Prince Mohammed bin Salman, who also serves as minister of defense said: “While the Kingdom is one of the world’s top five spenders on security and defense overall, only around two percent of our military procurement is domestic”.
The deputy crown prince emphasized that SAMI will be a major contributor in achieving the goals set out in Vision 2030, which states that fifty percent of Saudi Arabia’s military procurement spending will be localized.
SAMI’s four business units closely complement the Kingdom’s future military requirements and build on existing local capabilities. SAMI will establish companies through joint ventures with global original equipment manufacturers (OEMs), as well as cooperating with local military companies. SAMI will consider creating new business units, to ensure the company is aligned with the latest developments in the military industries sector.