Imagine a landscape where the private sector takes center stage in transforming military industries, driving growth and sustainability. Saudi Arabia is making this vision a reality as it ambitiously moves towards localizing over half of its military expenditures by 2030.
Forging New Pathways in Military Industries
In a groundbreaking initiative, the Federation of Saudi Chambers has established a pioneering national committee dedicated to military industries. This committee, the first of its kind, is headed by Salman Al-Shatri with Zeyad Al-Mohaimeed as vice chairman. This collaboration unites the private sector with key organizations like the General Authority for Military Industries (GAMI) and Saudi Arabian Military Industries (SAMI).
Al-Shatri highlighted the committee’s mission to expand the number of companies within this sector and effectively manage the influx of investments through strategic partnerships. The committee’s role is not only to represent the private sector at home but also to engage internationally, ensuring that initiatives meet the sector’s evolving needs.
Accelerating Localization and Innovation
The committee is set to engage directly with relevant ministries to foster sustainable and locally-driven projects, removing barriers and leveraging support programs. Emphasizing technology localization, it aims to collaborate with defense and military industry authorities to innovate and secure essential resources.
Al-Shatri underscored the necessity of cultivating an environment conducive to research, development, and robust factory infrastructure to fulfill Saudi Vision 2030’s objectives. This committee’s formation marks a strategic step in achieving these ambitious goals.
Opportunities for Investment and Growth
This initiative aligns with recent directives from the Saudi Chambers of Commerce, which focus on modernizing the economy in accordance with the Kingdom’s vision. The military industry, in particular, aims to localize over 50% of its activities by 2030. Significant progress has already been made, with localization rates soaring from 4% to 13.6% by the end of 2022.
Saudi Arabia has issued permits to 265 companies in the military sector and unveiled over 74 investment opportunities to enhance the supply chain. In a demonstration of its global outreach, Riyadh hosted an international defense exhibition featuring 773 exhibitors from 75 countries, attracting defense ministers and top officials.
The Kingdom’s commitment to fostering a thriving military industry presents a compelling invitation for investors worldwide, promising robust growth and innovation in a rapidly evolving sector.
