Security, Defence & Aerospace
From The Report: Saudi Arabia 2018
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With the creation of a new defence holding company and clauses requiring that local manufacturing and job creation be written into new contracts with international suppliers, the Kingdom’s aerospace, defence and security sector is primed for growth. The defence and security market in Saudi Arabia is among the most lucrative in the world, as exemplified by the more than $110bn worth of defence contracts signed during US President Donald Trump’s May 2017 visit to Riyadh. Shares in several major US defence firms soared following news of the agreements, and President Trump highlighted the boost for jobs in the US. However, the new deal also included pledges for new factories and employment prospects for people in Saudi Arabia itself.

This chapter contains an interview with Ahmed Al Khateeb, Chairman, Saudi Arabian Military Industries; and Advisor to the Minister of Defence.

Articles from this Chapter

Overview

Evolving defence: Diversification efforts drive localisation of arms manufacturing
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With the creation of a new defence holding company and clauses requiring that local manufacturing and job creation be written into new contracts with international suppliers, the Kingdom’s aerospace, defence and security sector is primed for growth. The defence and security market in Saudi Arabia is among the most lucrative in the world, as exemplified by the more than $110bn worth of defence contracts signed during US President Donald Trump’s May 2017 visit to Riyadh. Shares in several…

Interview

Growth and opportunity: Ahmed Al Khateeb, Chairman, Saudi Arabian Military Industries (SAMI); and Advisor to the Minister of Defence
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Interview:Ahmed Al Khateeb How can the localisation of the defence sector further contribute to the economy? AHMED AL KHATEEB: The military industries sector is an undeveloped sector of the economy, especially considering that the Kingdom is one of the world’s top five spenders on security and defence. In 2016 military sector expenses constituted 25% of total expenditures. In line with Vision 2030’s overarching goal to diversify Saudi Arabia’s economy, SAMI aims to be the major contributor…

Analysis

Partner up: Cooperation with the private sector is giving the industry a boost
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At Saudi Technology Development and Investment Company (TAQNIA) aviators and engineers, who are the beneficiaries of Saudi Arabia’s investments in defence and education, are making plans for the future of the Kingdom’s aerospace industry. TAQNIA, which was formed by royal decree in 2011 as a branch of the Public Investment Fund, is drawing on the experience and talent of the country’s armed forces and on the industrial knowledge of engineers who have trained and worked in the US, UK…