Security, Aerospace & Defence
From The Report: Saudi Arabia 2016
View in Online Reader

Saudi Arabia has long been a major investor in its military, with defence outlays representing a significant portion of the national budget. Despite the drop in oil prices since mid-2014, which in the short term is having a noticeable impact on the government’s military spending, defence outlays are likely to continue to grow, with multi-billion-dollar contracts still being signed. While contracts with foreign military suppliers will remain a key part of the Saudi military composition, an increased emphasis has been placed on developing a domestic defence sector, with strategic partnerships and the funding of research facilities. There is currently a growing industry of domestic defence-related firms in Saudi Arabia, many of them tied to the aeronautics segment.

This chapter contains an interview with Ghassan Al Shibl, Senior Advisor to the Board of Directors and Former CEO, Advanced Electronics Company.

Articles from this Chapter

Overview

Forward-facing defence: With increased spending and modernisation under way, the sector continues to expand and develop
OBG
plus

Saudi Arabia has long been a major investor in its military, with defence outlays representing a significant portion of the national budget. Despite the drop in oil prices since mid-2014, which in the short term is having a noticeable impact on the government’s military spending, defence spending is likely to continue to grow, with multi-billion-dollar contracts still being signed. While contracts with foreign military suppliers – such as the $29.4bn F-15SA (Saudi Advanced) deal with US firm…

Interview

Expanding capacity: OBG talks to Ghassan Al Shibl, Senior Advisor to the Board of Directors and Former CEO, Advanced Electronics Company
OBG
plus

Interview:Ghassan Al Shibl With the third-highest defence budget worldwide, how far can Saudi Arabia localise spending? GHASSAN AL SHIBL: It is extremely encouraging that in Vision 2030 there is a focus on localisation. Much of the necessary infrastructure is already in place, so the goal of reaching 50% local, value-added content is achievable. Given the geopolitical environment, it is clear the Kingdom will have to continue its defence spending for the foreseeable future, and Saudi Arabia…

Analysis

Electronic frontier: Cybersecurity is becoming recognised as a key aspect of national defence
OBG
plus

There is a growing awareness in Saudi Arabia that cybersecurity is a major global priority, and that the Kingdom needs to be adequately prepared to deal with advanced cyberattacks. In August 2015 Saudi government websites, including state education, health, sports and municipal sites, were targeted and breached over the course of two hours. While the breaches, which were orchestrated by a Saudi national, did not result in any data being stolen, and access was restored shortly afterwards, it reaffirmed…