SAMI eyes place in world’s 25 largest military firms by 2030: CEO

Saudi Arabian Military Industries CEO Walid Abukhaled

Saudi Arabian Military Industries (SAMI) expects to be among the 25 largest companies in the world by 2030, Asharq News channel reported, citing SAMI’s CEO, Walid Abukhaled.

He added that a strategy has been developed to achieve this goal, as the Kingdom has created an appropriate environment that helps and supports the nationalization of military industries.

The General Authority for Military Industries (GAMI) currently supports the existence of a military industrial sector and develops it, he stated.

The CEO also explained that the defense industries localization is part of the Vision 2030, aiming to localize 50% of military industries and manufacture them locally.

Abukhaled asserted that the acquisition of Advanced Electronics Co. (AEC) accelerated the pace of SAMI’s journey towards localizing the industry.

Following the acquisition, SAMI now has close to 2,500 employees, 85% of whom are Saudis.

SAMI will be the main contractor for major projects, as there will be sturdy and strong supply chains due to the Kingdom's new approach, and therefore it must rely on other local firms to support these projects, he clarified. 

Abukhaled asserted that the Kingdom is one of the most important markets across the region and the world, and one of the largest countries importing military systems, which makes it attractive to foreign companies. 

He emphasized that the previous way of importing ready-made military systems will stop. 

SAMI will enter partnerships with international companies to implement projects inside the Kingdom, as theses international firms must have a local partner to exist in Saudi Arabia. 

Furthermore, the company is seeking more acquisitions in the future, as part of its growth strategy, the CEO said, indicating that Saudi market will be the priority followed by building capabilities to work regionally and globally.  

According to data compiled by Argaam, SAMI, a wholly owned subsidiary of the Public Investment Fund (PIF), acquired AEC as part of the largest-ever military industries deal concluded in the Kingdom.