Security, Aerospace & Defence
From The Report: Saudi Arabia 2015
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In 2014 Saudi Arabia spent 35% of its budget on defence, equivalent to roughly $80.7bn. The coming years are likely to see increased emphasis on homeland security in three areas: securing the Kingdom’s northern and southern borders, cybersecurity and counter-terrorism. The Kingdom remains focused on developing a sophisticated domestic defence industry, investing heavily to this end in research and development, with various agreements in place between defence companies and Saudi research institutions. These are complemented by a number of collaborative projects in defence-related disciplines that are being forged by leading US universities and their Saudi counterparts. Meanwhile, the offset rules in place ensure that Saudi companies and workers can benefit from the expertise offered by foreign firms that win tenders in Saudi Arabia’s defence sector. This chapter contains interviews with Prince Turki AlFaisal bin Abdulaziz Al Saud, Chairman, King Faisal Centre for Research and Islamic Studies; and Prince Mutaib bin Abdullah bin Abdulaziz Al Saud, Minister, Saudi Arabian National Guard.

Articles from this Chapter

Overview

A maturing market: With high levels of investment in the sector, the Kingdom is placing emphasis on developing local defence firms
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Of all the industrial and commercial sectors that Saudi Arabia is targeting for development as part of its shift towards a knowledge-based economy, defence is one in which it is particularly well placed to become a global leader. Already the world’s third-biggest defence spender, according to the International Institute for Strategic Studies, the Saudi government is expected to continue investing heavily in the sector regardless of fluctuations in the price of oil. Much of this money will continue…

Interview

Securing stability: OBG talks to Prince Turki AlFaisal bin Abdulaziz Al Saud, Chairman, King Faisal Centre for Research and Islamic Studies
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Interview:Prince Turki AlFaisal bin Abdulaziz Al Saud How is rising instability in the region affecting Saudi defence spending and security priorities? PRINCE TURKI ALFAISAL ABDULAZIZ AL SAUD: Rising regional instability is a national security concern not only for Saudi Arabia but for all states in the region. However, Saudi Arabia as an important regional power has a special responsibility in addressing such challenges, both to preserve its own security, stability and prosperity, and to…

Analysis

On the front lines: Enhancing the Kingdom’s cybersecurity readiness
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The growing security threat posed by cyber-attacks as Saudi Arabia becomes ever more reliant on IT has led to the development of a national information security strategy (NISS) and increasing investment in cyber-security. Demand for cybersecurity products comes from both the government and private sectors. “Cyber-security is big business in Saudi Arabia. All the major companies have dedicated significant budgets to ensuring they have the proper protection,” Jean Yves Tolot, CEO of the electronic…

Interview

A greater premium: OBG talks to Prince Mutaib bin Abdullah bin Abdulaziz Al Saud, Minister, Saudi Arabian National Guard
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Interview:Prince Mutaib bin Abdullah bin Abdulaziz Al Saud With instability in neighbouring countries a growing concern, what is being done to ensure that the Kingdom’s borders are secure? PRINCE MUTAIB BIN ABDULLAH BIN ABDULAZIZ AL SAUD: The Kingdom has one of the longest land and sea borders in the region, and is the only country that shares a border with all the GCC countries plus Iraq, Jordan and Yemen. It also shares a maritime boundary with many Gulf and African countries. The Ministry…

Analysis

Positive impact: The offset programme brings multiple benefits to local firms
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Heavy investment in defence procurement by Saudi Arabia has been accompanied by a desire on the part of government to see such spending advance not just the Kingdom’s national security objectives but also its ambitions to become a knowledge-driven economy. Critical to these efforts are foreign expertise and investment in skilled job-creating businesses, and as a result the government set up its Economic Offset Programme (EOP) in the 1980s. Offset rules mandate that successful bidders invest the…