Saudi Arabia: 70 Companies Invest $ 6.4 Billion in Military Industries Sector

Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed with the governor of the Saudi General Authority for Military Industries (GAMI) and the Saudi ambassador to the UAE | Asharq Al-Awsat
Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed with the governor of the Saudi General Authority for Military Industries (GAMI) and the Saudi ambassador to the UAE | Asharq Al-Awsat
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Saudi Arabia: 70 Companies Invest $ 6.4 Billion in Military Industries Sector

Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed with the governor of the Saudi General Authority for Military Industries (GAMI) and the Saudi ambassador to the UAE | Asharq Al-Awsat
Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed with the governor of the Saudi General Authority for Military Industries (GAMI) and the Saudi ambassador to the UAE | Asharq Al-Awsat

The number of local and international military industry companies operating in Saudi Arabia reached more than 70 with an estimated investment volume of SR24 billion ($6.4 billion).

The General Authority for Military Industries (GAMI), which is overseeing the Saudi pavilion at IDEX 2021, stated that it has issued licenses for 70 local and international companies until the end of 2020. The total number of these companies' licenses reached 114 licenses that would enable them to engage in several different activities in the military industry sector.

The percentage of manufacturing licenses reached 57% and the military service licenses reached 25%, while the percentage of supply licenses reached 18 percent. The licensed national companies in this sector represent 81%, while the percentage of foreign and mixed companies reached 19% of the total number of companies.

The authority stated that it aims to support investors and facilitate their entry into the Saudi military and security industries market, making them a part of its strategy that contributes to the Saudi Vision 2030 objective of localizing over 50 % of the military equipment spending by 2030.

GAMI’s online licensing portal; licensing.gami.gov.sa allows investors to issue permits and military licenses that include six different activities in the sector including military equipment, military services, military electronics, in addition to military electronic services, ammunition, and manufacturing explosives.

It is worth noting that GAMI is the responsible authority for regulating, enabling, and licensing military industries in Saudi Arabia. It is responsible for developing a sustainable sector for defense and security industries in Saudi Arabia that enhances its strategic independence in this field, strengthens the foundations of its national security, and supports its economic and social growth.

Separately, the third day of the International Defense Exhibition (IDEX) and the Naval Defense Exhibition (NAVDEX) 2021 has seen the UAE Armed Forces sign 12 new deals, worth AED 5.589 billion ($1.4 billion), with local and international companies.

The cumulative value of deals signed at IDEX and NAVDEX 2021 is now AED 17.913 billion ($4.7 billion).

“The total amount of deals signed with international parties amounted to AED 1.164 billion ($310 million), which is 21% of the total deal value for today, and AED 4.425 billion ($1.1 billion) of deals were agreed with UAE companies, which is 79% of today’s total deal value,” said staff Brigadier-General Mohammed Al Hassani.

“Six contracts were awarded to international companies, and six agreements have been implemented with UAE-based companies. 12 deals were signed in total,” added the official spokesperson of the IDEX and NAVDEX exhibitions.



French CMA CGM to Acquire Turkish Borusan's Logistics Subsidiary in $440 mln Deal

The CMA CGM Greenland container ship is seen at sea with Paris 2024 and the Olympic rings on it during the Olympics torch relay ahead Paris 2024 Olympic games, in Marseille, France, May 9, 2024. REUTERS/Benoit Tessier/File Photo
The CMA CGM Greenland container ship is seen at sea with Paris 2024 and the Olympic rings on it during the Olympics torch relay ahead Paris 2024 Olympic games, in Marseille, France, May 9, 2024. REUTERS/Benoit Tessier/File Photo
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French CMA CGM to Acquire Turkish Borusan's Logistics Subsidiary in $440 mln Deal

The CMA CGM Greenland container ship is seen at sea with Paris 2024 and the Olympic rings on it during the Olympics torch relay ahead Paris 2024 Olympic games, in Marseille, France, May 9, 2024. REUTERS/Benoit Tessier/File Photo
The CMA CGM Greenland container ship is seen at sea with Paris 2024 and the Olympic rings on it during the Olympics torch relay ahead Paris 2024 Olympic games, in Marseille, France, May 9, 2024. REUTERS/Benoit Tessier/File Photo

French shipping giant CMA CGM's subsidiary CEVA Corporate Services has signed a deal to acquire Turkish conglomerate Borusan's logistics arm, Borusan Tedarik Zinciri Cozumleri ve Teknoloji, for $440 million, according to a filing by the Turkish company.

Borusan Yatirim said in the exchange filing that the price was subject to ordinary net cash and working capital adjustments, adding that the deal was subject to approval from competition authorities and other relevant regulatory bodies.

Borusan Tedarik operates the largest port in Türkiye's manufacturing hub of Gemlik, with an annual capacity to handle 1,500 ships and around 400,000 twenty-foot containers (TEU), a standard measure for shipping containers.

CMA CGM is the world's third-largest container line, Reuters reported.

Headquartered in Marseille, France, CEVA offers a broad range of end-to-end contract logistics and air, ocean, ground and finished vehicle transport in 170 countries worldwide thanks to its approximately 110,000 employees at more than 1,500 facilities.

CEVA said its planned acquisition of Borusan Tedarik, would nearly double its warehousing and distribution footprint in Türkiye, adding around 570,000 square metres to its existing 620,000 square metres of space.

The deal would also boost its domestic ground transport operations, with the combined activities expected to handle nearly 1 million domestic shipments annually, CEVA said in a statement on its website. Borusan Tedarik's network is set to strengthen CEVA's connections with Europe, the company added.

CEVA said Borusan Tedarik's strong ties in the automotive sector would help lift its finished vehicle logistics (FVL) operations into a top-three position domestically. The acquisition is also expected to expand CEVA's ocean freight capacity by 25% and place its air freight operations among the top five in Türkiye.