SAMI CEO Walid Abukhaled discusses corporate efforts and Vision 2030 goals in an interview with Oxford Business Group
Riyadh, August 2024: Oxford Business Group (OBG) delves into Saudi Arabia’s strategic initiatives for defence sector advancement in its latest interview with Walid Abukhaled, CEO of Saudi Arabian Military Industries (SAMI). The discussion explores the Kingdom’s efforts to enhance private sector engagement and increase domestic military manufacturing capabilities.
In the interview, Abukhaled highlights the positive influence of Vision 2030 on the Kingdom’s economic development, with a target of 50% localisation in defence spending by 2030. A 15% localisation rate has already been achieved in the domestic supply chain and the rate is expected to rise further between 2024 and 2030. All contracts require foreign firms to invest in developing local skills through technology and knowledge transfer, with the aim of enhancing the manufacturing workforce and providing services to the Saudi security forces.
Abukhaled also emphasises the significant impact of technological innovation on the security and defence industry. With the rise of artificial intelligence, quantum technology, robotics, unmanned systems and space domain exploration, the industry is witnessing rapid transformation. Saudi Arabia has an emerging and agile defence industry, capable of sourcing, adapting and incorporating new technologies without the legacy constraints present in other countries.
To boost economic diversification through private sector engagement, the Saudi private sector is being encouraged to increase its involvement in military industries. In March 2024, the Council of Saudi Chambers announced the formation of the first national committee for military industries, working with SAMI, the General Authority for Military Industries (GAMI), the General Authority for Defence Development and other key stakeholders. Greater private sector engagement is anticipated to contribute significantly to economic diversification and the creation of job opportunities for Saudis.
In support of this, GAMI launched the Military Industries Human Capital Strategy in February 2022, followed by the establishment of the National Academy for Military Industries in May 2022. This initiative aims to bridge the gap between the skills required in the industry and the output provided by educational institutions, targeting the production of 30,000 technicians, 25,000 service jobs and 12,000 engineers.
Foreign partnerships and technology transfer play a vital role in localising defence capabilities. Abukhaled highlights several joint ventures with industry-leading firms such as Airbus, Boeing, Lockheed Martin and Thales. More recently, a contract with Turkey’s Baykar was signed in August 2023 to localise the production of unmanned aircraft in Saudi Arabia.
The full interview will be featured in the Security, Aerospace and Defence chapter of the upcoming publication, The Report: Saudi Arabia 2024, which will showcase the Kingdom’s advancements in defence manufacturing and private sector engagement under Vision 2030, among other key topics.
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