The Saudi private sector is stepping up its involvement in military industries to boost sector development and ensure long-term project success. The aim is to meet the Kingdom’s goal of localizing more than half of its military spending by 2030.
Recently, the Federation of Saudi Chambers has announced the formation of the first-of-its-kind national committee for military industries in the Kingdom. Salman Al-Shatri has been elected chairman of the committee while Zeyad Al-Mohaimeed is the vice chairman.
This is the first time that a committee concerned with the military industries sector has been formed under the umbrella of the private sector, represented by the Federation of Saudi Chambers, to work with relevant bodies such as the General Authority for Military Industries (GAMI), the Saudi Arabian Military Industries (SAMI) and other authorities.
Speaking to Asharq Al-Awsat, Al-Shatri said that the committee’s goal is to boost the number of companies in the sector and manage increasing investments effectively through collaboration.
Moreover, the committee aims to represent the private sector both domestically and internationally, and to work closely with GAMI to ensure programs serve the sector’s needs well.
Al-Shatri explained that the committee will directly communicate with relevant ministries to ensure local and sustainable projects in the sector. They’ll share feedback with authorities like the Ministry of Industry, Investment Ministry, and others to remove obstacles and utilize support programs.
He emphasized the committee’s focus on technology localization and research. They'll work closely with defense development and military industry authorities to develop needed technologies and ensure project resources.
Al-Shatri stressed that achieving Saudi Vision 2030 goals requires the right environment for research, development, and factory infrastructure. That's what the committee aims to address next.
The creation of the new committee follows recent directives from the Saudi Chambers of Commerce, aimed at modernizing the economy in line with the Kingdom’s vision.
Among the focus areas is the military industry, which aims to localize over 50% of its operations by 2030.
Government efforts have led to a significant increase in military industry capabilities, with localization rates rising from 4% to 13.6% by the end of 2022.
Saudi Arabia has issued permits for 265 companies in the military sector and announced over 74 investment opportunities to localize the supply chain.
In February, Riyadh hosted a global defense show with over 773 exhibitors from 75 countries and participation from defense ministers and senior officials.
