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.



Iraq Studies Alternative Options for Oil Exports

Floating oil export loading platforms at the Basra Oil Port, Iraq, March 12, 2026. REUTERS/Mohammed Aty
Floating oil export loading platforms at the Basra Oil Port, Iraq, March 12, 2026. REUTERS/Mohammed Aty
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Iraq Studies Alternative Options for Oil Exports

Floating oil export loading platforms at the Basra Oil Port, Iraq, March 12, 2026. REUTERS/Mohammed Aty
Floating oil export loading platforms at the Basra Oil Port, Iraq, March 12, 2026. REUTERS/Mohammed Aty

Iraq is studying alternative measures to export crude oil after disruptions to the process amid the US-Israeli war against Iran. At the same time, the country intends to continue producing crude oil at a level of 1.4 million barrels per day.

Iraqi Oil Minister Hayyan Abdul Ghani told the official television channel Al-Iraqiya News that oil exports account for 90 percent of Iraq’s revenues, and that the ministry has decided to continue producing crude oil at 1.4 million barrels per day.

He emphasized that the production and supply of petroleum products to meet domestic demand have not stopped.

He added that refineries are operating at full design capacity to cover local needs, and that sufficient quantities of liquefied gas are available to fully meet domestic needs.

Regarding exports, he explained that the export process has stopped in the south, prompting the government to search for possible alternatives to export crude oil. He revealed that an agreement is close to being signed to export oil through the Turkish Ceyhan pipeline.

Abdul Ghani added that the ministry has prepared a comprehensive plan to manage the current phase, particularly after the new circumstances in the Strait of Hormuz, noting that a plan has been activated to transport 200,000 barrels per day by tanker trucks through Türkiye, Syria, and Jordan.

In a separate context, the oil minister denied that tankers targeted in Iraqi waters belonged to Iraq, explaining that they were not Iraqi vessels and were carrying naphtha.

Iraq recently lost its entire oil export capacity of 3.35 million barrels per day after Iran closed the Strait of Hormuz following escalating conflict in the region.

Iraq relies on crude oil sales for about 95 percent of its revenues to meet the needs of the country’s annual federal budget. This means that the country would face a critical situation if the conflict in the Gulf region and the Strait of Hormuz continues.


Gold Set for Weekly Drop as Oil Price Surge Weighs on Rate-cut Hopes

FILE PHOTO: A goldsmith weighs gold jewelry inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo
FILE PHOTO: A goldsmith weighs gold jewelry inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo
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Gold Set for Weekly Drop as Oil Price Surge Weighs on Rate-cut Hopes

FILE PHOTO: A goldsmith weighs gold jewelry inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo
FILE PHOTO: A goldsmith weighs gold jewelry inside a showroom in Ahmedabad, India, July 31, 2025. REUTERS/Amit Dave/File Photo

Gold prices were on track for a second consecutive weekly drop, despite edging up on Friday, as surging energy prices due to the Middle East war dimmed prospects for near-term US interest rate cuts.

Spot gold was up 0.3% at $5,095.55 per ounce, as of 0633 GMT on Friday. US gold futures for April delivery fell 0.1% to $5,100.20.

The US 10-year Treasury yields eased, increasing the appeal of the non-yielding bullion. Bullion, however, has ‌lost more ‌than 1% so far this week. Since the war ‌started ⁠on February 28, ⁠it has dropped over 3% so far.

Fears of inflation and questions about the Federal Reserve's ability to cut interest rates if high oil prices persist are somewhat counteracting gold's appeal, said Tim Waterer, KCM Trade chief market analyst.

"Given the ongoing uncertainty about the duration and scope of the conflict in the Middle East, I expect gold to remain on the ⁠radar for investors as a safety play." Heightening geopolitical ‌tensions, Iran's Supreme Leader Mojtaba Khamenei said ‌on Thursday that Tehran will keep the strategic Strait of Hormuz closed as ‌leverage against the US and Israel, which has stoked concerns about ‌global energy supply and risk assets.

Oil prices rose above $100 a barrel, as attacks on oil tankers in the Gulf and warnings from Iran shattered prospects of quick de-escalation in the Middle East conflict. As oil prices surged, US President Donald ‌Trump again demanded Fed Chair Jerome Powell cut interest rates.

Traders, however, expect the Fed to keep rates ⁠steady in the current ⁠3.5%-3.75% range at the end of its two-day meeting on March 18, according to CME Group's FedWatch tool. While recent inflation data suggest price growth is under control, the war and the resulting spike in crude prices have yet to filter through the data.

Investors are awaiting the release of the delayed January Personal Consumption Expenditures Index, expected on Friday. Gold discounts in India widened this week to their deepest point in nearly a decade as demand stayed subdued and some traders steered clear of paying import duties, while the escalating Middle East war boosted safe-haven demand in China.

Spot silver was down 1% at $82.91 per ounce. Spot platinum lost 1% to $2,111.45 and palladium fell 1% to $1,603.


Iran War and Rising Fuel Costs Could Boost Panama Canal Traffic, Administrator Says

A cargo ship sails under Las Americas bridge through the Panama Canal, in Panama City, Thursday, March 12, 2026. (AP)
A cargo ship sails under Las Americas bridge through the Panama Canal, in Panama City, Thursday, March 12, 2026. (AP)
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Iran War and Rising Fuel Costs Could Boost Panama Canal Traffic, Administrator Says

A cargo ship sails under Las Americas bridge through the Panama Canal, in Panama City, Thursday, March 12, 2026. (AP)
A cargo ship sails under Las Americas bridge through the Panama Canal, in Panama City, Thursday, March 12, 2026. (AP)

Panama Canal Administrator Ricaurte Vásquez said Thursday that the conflict in the Middle East and rising fuel costs could ultimately benefit the interoceanic waterway as global shippers adjust routes.

In an interview with The Associated Press, Vásquez said that higher energy, fuel and navigation costs could make the Panama Canal a more attractive option for commercial traffic.

“When costs increase, in general when the price of marine fuel rises, the Panama Canal becomes a more attractive route,” Vásquez said.

Oil prices have risen amid the war in the Middle East, which has led to the temporary closure of the Strait of Hormuz by Iran in response to US and Israeli attacks. About one-fifth of the world’s oil passes through the waterway at the mouth of the Gulf.

If higher energy costs persist, routing cargo through Panama can cut voyages by between three and 15 days, depending on the route, while reducing fuel consumption, he said.

Vásquez said higher fuel costs are expected to affect container ships, bulk carriers and tankers transporting liquefied natural gas. If Middle Eastern supplies are disrupted, shipments may be replaced by other sources, including the United States, which could redirect some LNG cargo from Europe to Asia via Panama.

Gerardo Bósquez, an executive with the Panama Maritime Chamber, said a prolonged conflict could reshape global trade routes, with gas transport among the segments likely to benefit.

Vásquez cautioned that any changes will not be immediate and will depend on how long cargo operators expect the conflict and instability in the Gulf last.