SAMI CEO to Asharq Al-Awsat: Advancing Toward Integrated, Sovereign Saudi Defense Industry

SAMI took part in the World Defense Show, which recently concluded in the capital Riyadh. (Asharq Al-Awsat)
SAMI took part in the World Defense Show, which recently concluded in the capital Riyadh. (Asharq Al-Awsat)
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SAMI CEO to Asharq Al-Awsat: Advancing Toward Integrated, Sovereign Saudi Defense Industry

SAMI took part in the World Defense Show, which recently concluded in the capital Riyadh. (Asharq Al-Awsat)
SAMI took part in the World Defense Show, which recently concluded in the capital Riyadh. (Asharq Al-Awsat)

The Saudi Arabian Military Industries (SAMI) is accelerating its push to deliver its 2030 strategy, aiming to anchor a sustainable national defense base built on deeper localization, advanced technology transfer and development, and an integrated industrial ecosystem spanning Saudi Arabia’s defense and security sectors.

SAMI Chief Executive Officer Eng. Thamer AlMuhid said the next phase marks a decisive shift in SAMI’s trajectory, from building capabilities to full industrial enablement, to strengthen self-sufficiency, readiness, and defense sovereignty in line with Saudi Vision 2030.

Speaking to Asharq Al-Awsat, AlMuhid said the strategy translates into developing and supporting defense industries inside the Kingdom, boosting self-reliance and playing a central role in meeting the Vision 2030 goal of localizing 50% of defense spending. That target, he said, will directly boost the armed forces’ readiness and operational capacity.

On the sidelines of the recently concluded World Defense Show in Riyadh, he described the coming stage as a qualitative leap from foundation-building to broad-based defense industrial expansion, reinforcing the Kingdom’s long-term defense readiness and sovereignty.

Sources of strength

AlMuhid said SAMI’s strength lies in its structure as an integrated national entity operating under a distinct business model that brings together specialized Saudi companies, qualified national talent, flexible domestic supply chains and strategic partnerships with major global firms.

That integration enables the group to convert national objectives into tangible industrial output and defense products manufactured in the Kingdom, supporting national security and the long-term sustainability of the military industries sector.

World Defense Show participation

AlMuhid said SAMI’s presence at the World Defense Show underscores the maturity of its defense ecosystem, operating across specialized and complementary sectors including aerospace, land and naval systems, unmanned systems, advanced electronics, munitions and professional services.

The ecosystem covers the full value chain, from design and development to manufacturing, integration, support and sustainment.

The message from Riyadh to partners and international markets is clear, he said, adding that Saudi Arabia now has a sovereign industrial base, trusted national capabilities and expanding supply chains operating to global standards.

SAMI has become a strategic partner capable of delivering sustainable defense solutions that enhance national security and open new avenues for industrial cooperation with leading global defense companies, he stressed.

Local content

SAMI’s Local Content Program (Rukn) is designed to organize and expand the role of national suppliers within the defense industries ecosystem, he went on to say.

The program goes beyond raising localization ratios, focusing on building sustainable domestic supply chains that meet defense industry standards for quality, reliability and continuity, AlMuhid explained.

It seeks to empower local suppliers, particularly small and medium-sized enterprises, through qualification, knowledge transfer and direct integration into SAMI projects and subsidiaries, he added.

The initiative also deepens domestic supply chains by localizing components, services and industrial processes inside the Kingdom and integrating suppliers across the full value cycle, raising local content and improving sector efficiency, he continued.

AlMuhid said SAMI acts as a key enabler and driver of local content, expanding its base through projects and partnerships within an integrated national framework to lift localization rates across the sector, not just within the company.

Industrial enablement

AlMuhid said SAMI has moved beyond technology transfer to full industrial enablement by building an integrated defense ecosystem led by specialized national companies, each with a defined sectoral role under a model that combines operational independence with group-wide integration.

Each subsidiary operates with flexibility and autonomy within a centralized governance framework and overarching strategy set by SAMI, ensuring alignment across the group.

He said SAMI Land Systems serves as a national arm in the design and manufacture of combat vehicles, artillery systems and armored platforms, as well as advanced protection solutions and integrated maintenance and logistics services.

SAMI Aerospace provides maintenance, repair and overhaul services for aerospace systems, focusing on support for the Royal Saudi Air Force, and has achieved 75% local content, revealed AlMuhid. It also signed an agreement with SKYFive Arabia to install air-to-ground (A2G) connectivity systems on flynas aircraft, becoming the exclusive regional partner in this field.

SAMI Advanced Electronics designs and develops command and control systems, cybersecurity, electronic warfare and sensor technologies within an integrated framework to protect digital infrastructure.

SAMI Autonomous Systems specializes in autonomous systems and unmanned aerial, naval and land platforms.

In munitions, SAMI Munitions leads an industrial complex project that has surpassed 60% localization and created more than 1,200 jobs. It has also signed a contract with the Ministry of National Guard to sustain systems and weapons in support of higher local content.

AlMuhid said SAMI’s international partnerships are structured to ensure technology transfer, localization of operations and national capacity building, backed by clear governance and performance indicators to secure a shift from assembly to full manufacturing.

Largest integrated facility

AlMuhid said the SAMI Industrial Complex for Land Systems, operated in line with Fourth Industrial Revolution requirements, is the largest integrated facility of its kind in the Middle East and North Africa.

The 82,000-square-meter plant sits within a one million-square-meter industrial zone and relies on automation, artificial intelligence, the Internet of Things and industrial robotics to raise production efficiency and enhance product quality to global standards.

The complex provides more than 1,000 specialized jobs for Saudis. Among its flagship outputs is the HEET project, which fully designs and manufactures armored vehicles inside the Kingdom, reflecting local control of the industrial value chain.

Challenges

AlMuhid said complex defense technologies, tightly linked global supply chains and the need to accelerate the development of specialized talent remain key challenges.

SAMI has approached them as opportunities to reshape the defense industrial model by localizing integration and operations, developing local suppliers as qualified industrial partners and building national talent within projects to ensure sustained expertise.

Human capital is central to that effort, he said. By the end of 2025, SAMI employed more than 7,000 people, 73% of them Saudi nationals, with women accounting for 12%.

The group delivered more than 400,000 training hours to over 3,000 employees and hired more than 2,200 new staff under a structured pathway spanning early recruitment, specialized qualification, hands-on factory training and enabling Saudis to work in advanced industrial environments and transfer knowledge.

Industrial enablement at SAMI is no longer a future ambition but an operational reality, AlMuhid said, strengthening the Kingdom’s defense sovereignty and boosting the competitiveness of its products regionally and internationally in line with Saudi Vision 2030.



Alibaba Proposes Hong Kong Share Placement Worth $10 Billion

FILE PHOTO: People visit an Alibaba booth during the World Artificial Intelligence Conference in Shanghai, China July 26, 2025.  REUTERS/Go Nakamura/File Photo/File Photo
FILE PHOTO: People visit an Alibaba booth during the World Artificial Intelligence Conference in Shanghai, China July 26, 2025. REUTERS/Go Nakamura/File Photo/File Photo
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Alibaba Proposes Hong Kong Share Placement Worth $10 Billion

FILE PHOTO: People visit an Alibaba booth during the World Artificial Intelligence Conference in Shanghai, China July 26, 2025.  REUTERS/Go Nakamura/File Photo/File Photo
FILE PHOTO: People visit an Alibaba booth during the World Artificial Intelligence Conference in Shanghai, China July 26, 2025. REUTERS/Go Nakamura/File Photo/File Photo

China's Alibaba announced on Sunday a proposed placement of new shares in Hong Kong.

The aggregate placement consideration is HK$80 billion ($10.2 billion), the company added, according to Reuters.

Alibaba said the ⁠deal would mark ⁠the largest-ever primary follow-on offering by a Hong Kong-listed company and the biggest Regulation S ⁠equity offering on record, while ranking as the world's third-largest primary follow-on share sale this year after Alphabet and Intel.

The company said it intends to use 100% of the net ⁠proceeds from ⁠the placement to invest in its full stack AI capabilities, including expanding and enhancing its AI infrastructure.


South Korea Sends 1st Container Ship Through Arctic Route

The container ship 'Panstar Acoro,' bound for Europe via the Arctic, docks at Busan port in South Korea on August 22, 2026 (Yonhap News Agency via Reuters)
The container ship 'Panstar Acoro,' bound for Europe via the Arctic, docks at Busan port in South Korea on August 22, 2026 (Yonhap News Agency via Reuters)
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South Korea Sends 1st Container Ship Through Arctic Route

The container ship 'Panstar Acoro,' bound for Europe via the Arctic, docks at Busan port in South Korea on August 22, 2026 (Yonhap News Agency via Reuters)
The container ship 'Panstar Acoro,' bound for Europe via the Arctic, docks at Busan port in South Korea on August 22, 2026 (Yonhap News Agency via Reuters)

South Korea sent its first trial container ship through the Arctic on Saturday, as the Middle East war rattles global shipping, while environmental groups warned the route could accelerate polar ice melt.

The Middle East conflict, sparked by US-Israeli strikes on Iran in February, has roiled global shipping, sending governments and shipping firms scrambling to seek alternative routes.

Sailing from Busan New Port, the "PanStar Acro" container ship is to sail to Europe via the Arctic, testing whether a route opened by melting sea ice can be commercially viable.

"We would like to inform you that the vessel for the Arctic route trial voyage departed" at 9:30 pm (1230 GMT), Seoul's oceans ministry said in a statement sent to AFP.

The ship is headed for Felixstowe in Britain, Rotterdam in the Netherlands and Gdansk in Poland before returning, with the voyage expected to take about 45 days, according to the ministry.

The voyage follows that of the Chinese container ship "Dubai Tower", which left the eastern port city of Ningbo for Europe this month, heading north through the Bering Strait before turning west along Russia's Arctic coast.

The usual maritime route between Asia and Europe runs through the Suez Canal, but travelling through the Arctic can cut the journey by around 7,000 kilometers (4,300 miles) and about 10 days, according to the Korea Institute for International Economic Policy.

South Korea's Vice Oceans Minister Nam Jae-hon said the Arctic route was "bound to become an alternative" to Middle Eastern shipping lanes -- as geopolitical risks and technological advances make it increasingly competitive.

Marc Lanteigne, a political science professor at the Arctic University of Norway, said the voyage -- coming soon after China's "Dubai Tower" began its own Arctic journey -- showed the Northern Sea Route (NSR) was becoming normalized as a "secondary maritime transit corridor".

A successful voyage would demonstrate South Korea's interest in "developing alternative shipping sea lanes", he told AFP, with concerns that it could fall behind as Chinese firms expand regular services through the increasingly viable Arctic route.

Some experts warn South Korean ships using the Arctic route could risk breaching Western sanctions on Russia -- currently a key security ally of North Korea -- as they would receive Russian navigation and weather services involving payments, albeit small ones.

South Korea's foreign ministry declined to comment when asked by AFP about the concerns involving Russia.

The oceans ministry said this week that "consultations with key relevant countries and agencies" have been completed to "implement administrative procedures necessary" for the voyage.

Vladimir Tikhonov, Korean Studies professor at the University of Oslo, said "strictly speaking, US and EU sanctions are not international law, unlike UN sanctions".

"And with continued uncertainty in the Middle East... South Korea may have few alternatives if the Arctic route proves economically viable," he told AFP.

Lanteigne said China's Northern Sea Route ambitions were more politically driven than South Korea's, with Beijing viewing the polar regions as "strategic new frontiers", raising Western security concerns.

Meanwhile, environmental groups warned growing traffic along the shorter NSR could accelerate Arctic sea ice loss already driven by global warming.

Major carriers including CMA CGM, MSC and Hapag-Lloyd have pledged to avoid Arctic shipping routes.

The NSR is believed to be accessible only during the time of year when the ice is melted enough to allow transits without icebreakers.

"The Northern Sea Route has become increasingly viable as the Arctic warms about four times faster than the global average, leading to a sharp decline in sea ice," South Korean environmental group Paran Ocean Citizen Science Center said in a statement last year.

"But making the route commercially viable would require further warming, putting the policy at odds with efforts to combat climate change."


Canada to Impose Retaliatory Across a Raft of US Sectors, Carney Says

 Prime Minister Mark Carney speaks about Canada's response to new US tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026. (Patrick Doyle/The Canadian Press via AP)
Prime Minister Mark Carney speaks about Canada's response to new US tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026. (Patrick Doyle/The Canadian Press via AP)
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Canada to Impose Retaliatory Across a Raft of US Sectors, Carney Says

 Prime Minister Mark Carney speaks about Canada's response to new US tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026. (Patrick Doyle/The Canadian Press via AP)
Prime Minister Mark Carney speaks about Canada's response to new US tariffs during a news conference on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026. (Patrick Doyle/The Canadian Press via AP)

Canada's Prime Minister Mark Carney said on Saturday that starting September 8 Canada would impose tariffs on imports from the United States across a raft of sectors in retaliation for President Donald Trump's new 50% tariffs that came into effect from midnight.

After days of intense negotiations, the two countries failed to reach a ‌trade deal late ‌Friday, worsening an already ‌delicate relationship ⁠between the two ⁠long-term trade partners and allies and complicating the future of a highly successful continental free trade pact called the US-Mexico-Canada agreement.

Trump's new tariffs hit a slew of sectors including furniture, dairy products, cement, clothing, fishing ⁠rods, hockey equipment and cover some $20 billion ‌of Canadian exports south ‌of the border.

These duties do not ‌give exemption to Canadian products under the USMCA, ‌which have shielded most of Canadian exports to the USin the last 18 months.

"Canada will match Washington’s new tariffs dollar for dollar ‌in order to protect Canadian workers, farmers, families, and businesses," Carney said at ⁠a ⁠news conference.

These retaliatory tariffs will hit sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics and will also include products currently subject to the unjustified Section 232 and 338 tariffs, Carney said in a spirited speech from the Parliament building in Ottawa.

"We cannot accept what they have offered, and we will not give what they have asked," Carney said.