State-owned Saudi Arabian Military Industries (SAMI) aims to generate annual revenue of $5 billion by 2030, its chief executive said on Monday, part of a drive to build more defense equipment inside the Kingdom.
Saudi Arabia set up SAMI in 2017 to cut its reliance on imported weapons and military systems.
The government aims to spend 50% of its military budget by 2030 on equipment made at home.
Chief Executive Walid Abukhaled told Reuters at Abu Dhabi’s Idex defense exhibition that SAMI aimed to be among the world’s top 25 defense firms by 2030. “Being in the top 25 companies by 2030, you’re looking at $5 billion a year” in revenue, he said.
Abukhaled, who did not give a figure for current revenues, took over as CEO in April.
Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, set up SAMI as part of a broad economic program to diversify the oil-dependent economy.
Abukhaled said SAMI would sign a deal on Monday with NIMR, a company in neighboring United Arab Emirates which builds military vehicles, to set up manufacturing in Saudi Arabia.
SAMI on Sunday signed a joint venture agreement with US firm Lockheed Martin, which is involved in installing a $15 billion missile defense system in Saudi Arabia.
Abukhaled said SAMI was developing systems to counter drones, a move that would help deal with drone attacks that are frequently launched at the Kingdom by the Iran-backed Houthi militias in Yemen.
“At the end of the day our ultimate objective is to really serve the (Saudi Arabian) armed forces,” Abukhaled said.