Security, Aerospace & Defence
From The Report: Saudi Arabia 2023
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Saudi Arabia allocated 7.4% of its GDP to defence expenditure in 2022, making it the world’s second-highest spender relative to GDP. Amid escalating global tensions and heightened military spending worldwide, Saudi Arabia emerged as a major player, ranking fifth in global defence spending in value terms, at $75bn. The Kingdom’s commitment to reinforcing national security and enhancing defence capabilities aligns with Vision 2030’s diversification and reform agenda. Efforts include the development of a thriving domestic defence manufacturing industry, with the aim of reducing reliance on foreign suppliers. Significant investment in advanced defence technology, local military procurement, workforce development, and high-tech security and aerospace segments are in progress, underscoring the Kingdom’s strategic vision.

This chapter contains an interview with Simon Barnes, CEO, BAE Systems.

Articles from this Chapter

Overview

Protect and defend: Localisation efforts are spurring economic development and helping to drive job creation and growth
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In 2022 Saudi Arabia devoted 7.4% of GDP to defence expenditure, positioning the Kingdom as the second-highest-spending nation on defence as a share of its GDP after Ukraine, which has been embroiled in a large-scale conflict with Russia following the invasion of the former’s territory by its neighbour in February 2022. Amid escalating global tensions stemming from the fighting, worldwide military spending reached an all-time high of $2.24trn in 2022, reflecting a 3.7% increase, according to the…

Interview

Safe measures: Simon Barnes, CEO, BAE Systems, on capability building and enhancing research and development
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Interview:Simon Barnes In what ways can manufacturers be encouraged to localise production and maintenance facilities? SIMON BARNES: Domestic and international firms are aligning their strategies with the government’s vision and the needs of military customers to ensure that the work and capabilities developed in Saudi Arabia are transferred permanently, rather than just for the duration of a contract. This focus on localisation and capability development is part of the country’s plans…

Analysis

Final frontier: Countries in the Gulf are exploring different avenues to harness space-related scientific and commercial opportunities
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In the push to embrace emerging technologies and leverage their potential commercial opportunities, Gulf countries have been launching new initiatives to bolster their growing domestic space industries. In June 2023 Saudi Arabia’s Council of Ministers approved the transformation of the Saudi Space Commission into a full government agency with the new heading of the Saudi Space Agency (SSA), underscoring the Kingdom’s commitment to the space sector and exploration activities. Cross-Sector Diversification The…