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SAMI CEO: We are Building an Integrated Sector, Studying New Acquisitions

SAMI CEO Walid Abukhaled, Asharq Al-Awsat
SAMI CEO Walid Abukhaled, Asharq Al-Awsat
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SAMI CEO: We are Building an Integrated Sector, Studying New Acquisitions

SAMI CEO Walid Abukhaled, Asharq Al-Awsat
SAMI CEO Walid Abukhaled, Asharq Al-Awsat

Localizing over 50% of the Saudi government military purchases and becoming one of the top 25 defense companies are two milestones the Saudi Arabian Military Industries (SAMI) is seeking to achieve by 2030.

In an interview with Asharq Al-Awsat, SAMI CEO Walid Abukhaled confirmed the state-owned defense company’s role in building an integrated military industries sector in the Kingdom, stressing that partnerships and acquisitions are a complementary part of the process.

The coming period will witness SAMI establishing a sector focused on maritime military industries, Abukhaled revealed, adding that new partnerships and acquisitions will be announced.

He stressed the importance of securing comprehensive supply chains for the Kingdom’s defense sector.

Speaking about SAMI’s strategy for reaching its goal of becoming one of the world’s top 25 defense companies, Abukhaled said it is centered around finding and striking partnerships with the best defense and aviation companies worldwide.

SAMI has signed an agreement to set up a joint venture with US firm Lockheed Martin at the International Defense Exhibition and Conference (IDEX) in Abu Dhabi. The defense company has also inked deals with major international players like L3HarrisTechnologies, Spanish shipbuilder Navantia, and Belgium's CMI Defense.

“The importance of these partnerships is that they bring you close to leading global companies in the field of military systems,” Abukhaled noted.

At the same time, we also acquired some companies and internal capabilities in Saudi Arabia

As for acquisitions, the CEO pointed out that SAMI has agreements with several companies inside Saudi Arabia that aim to develop and standardize some requirements and create greater efficiency.

Despite establishing global partnerships and completing initial internal acquisitions being core to the company’s strategy, Abukhaled said that SAMI’s chief concern is “supporting local supply chains in Saudi Arabia.”

“SAMI will not succeed if there are no reliable supply chains,” he stressed.

Confirming that SAMI will not be directly involved in the manufacture of military apparel, Abukhaled indicated that the company will rely on local and national companies.

“The company will be the main contractor in the military industries ecosystem, and we will rely on supply chains,” he explained.

For that reason, developing the infrastructure of Saudi SMEs in the military industry is a must, Abukhaled said, noting that doing so will make achieving the goal of becoming one of the world’s top 25 defense companies easy.

Abukhaled agreed that national acquisitions will make up the Kingdom’s military industry infrastructure while international partnerships will help shape the industry’s superstructure.

“Forging partnerships with international companies will ensure the transfer of advanced knowledge and technologies and help meet some of the requirements of the armed forces,” he said.

“As for the acquisitions, they are what prepare the infrastructure to accommodate and enhance acquired capabilities,” added Abukhaled.

When asked if SAMI is considering new acquisitions for the coming period, Abukhaled said: “Of course. We are constantly implementing acquisitions.”

“Reviewing the Kingdom’s defense industry and its integrated environment, we see that the local military sector needs maintenance, packaging and development services,” he noted, revealing that SAMI was currently studying potential acquisitions related to those provisions.

“We are greatly optimistic about the Saudi market and have a vision that illuminates our direction for the coming decade,” said Abukhaled, highlighting that “SAMI has taken important strides forward and is treading along a distinguished path.”

Although 2020 was a difficult year for many due to the outbreak of the coronavirus pandemic, it was a special year for SAMI.

“We have concluded many important agreements, obtained long-term business opportunities with the armed forces, and won contracts to develop products from scratch,” Abukhaled said about SAMI’s accomplishments last year.

In 2020, SAMI acquired the Advanced Electronics Company (AEC) as part of the largest military industries deal ever concluded in the Kingdom.

“Accordingly, circumstances have been set for the Kingdom to have a major start in 2021 and the years to come,” Abukhaled asserted.

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UN Deputy Special Coordinator to Asharq Al-Awsat: Humanitarian Situation in Lebanon is ‘Catastrophic’

Imran Riza, the UN’s Deputy Special Coordinator, Resident and Humanitarian Coordinator for Lebanon (Asharq Al-Awsat)
Imran Riza, the UN’s Deputy Special Coordinator, Resident and Humanitarian Coordinator for Lebanon (Asharq Al-Awsat)
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UN Deputy Special Coordinator to Asharq Al-Awsat: Humanitarian Situation in Lebanon is ‘Catastrophic’

Imran Riza, the UN’s Deputy Special Coordinator, Resident and Humanitarian Coordinator for Lebanon (Asharq Al-Awsat)
Imran Riza, the UN’s Deputy Special Coordinator, Resident and Humanitarian Coordinator for Lebanon (Asharq Al-Awsat)

One of the UN’s top humanitarian officials in Lebanon, Imran Riza, has warned that the situation will worsen if the conflict continues, calling for an immediate ceasefire between Israel and Hezbollah.

He stressed that the ongoing war is placing immense strain on both the UN and the Lebanese government, as over a million people have been displaced. He said current needs exceed $400 million, but only 12% of that amount has been raised so far.

Worsening Crisis

Riza, who is the UN Deputy Special Coordinator for Lebanon, UN Resident, and Humanitarian Coordinator for Lebanon, spoke to Asharq Al-Awsat. He described the past two weeks as “catastrophic” for civilians, with the crisis growing over the last year.

More than 600,000 people have been displaced and over a million affected, with 300,000 crossing the border, according to Riza.

Many of these people have been displaced more than once in search of safety. Riza emphasized that the war has severely impacted civilians, with more than a quarter of Lebanon's population affected.

The UN has been working to address the crisis, but Riza said resources are limited.

He stressed that the UN has been saying all year that it doesn’t have enough funds, even when there were only 110,000 displaced people.

Last week, the UN launched a $426 million appeal for urgent humanitarian aid, with 12% of the funding already secured.

Riza said more support is expected, with donor countries pledging additional help.

He also expressed gratitude for contributions from the Gulf Cooperation Council (GCC), which provided medical and relief supplies, and said the UN hopes to see more international assistance soon.

Working with the Government

The UN is working closely with the Lebanese government every day to provide shelter, food, healthcare, and water to those in need.

Cooperation with the government has been excellent, said Riza.

However, he acknowledged that the government’s capacity is weakened after five years of ongoing crises, which have also severely impacted the population.

People are less resilient than they were during the 2006 war, and the government and its institutions are weaker, affirmed Riza.

The UN is helping the government respond effectively, ensuring transparency and accountability, so that aid reaches those who need it, he added.

The UN is also collaborating with local and international NGOs that have gained experience from Lebanon’s recent crises, helping to ensure a more effective response. Shelters are also being monitored to prevent any abuse.

A Different Reality from 2006

The current situation in Lebanon is very different from the 2006 war. Politically, the country now has a caretaker government and no president, with much less international presence.

Back then, other countries were more involved, said Riza.

The 2006 war lasted only 33 days, but this conflict has dragged on for a year, he noted.

During recent visits to southern border areas, Riza said locals were asking when the war would end, as the situation has worsened significantly in the past two weeks.

Riza noted that, in the first week of the crisis, it was extremely difficult to respond, and even now, many displaced people remain without shelter.

The UN is working with the government to provide shelter, food, and healthcare, but it’s not easy, he noted.

Displacement Crisis

With winter approaching, Riza stressed the need to properly house displaced people, saying that people can’t be left without shelter.

There are also concerns over a lack of housing, clean water, and sanitation, as well as the risk of disease outbreaks. Despite these challenges, Riza praised the close cooperation between the UN, international organizations, and partners.

Many agencies are responding, he asserted.

Riza rejected any claims of discrimination between displaced groups, noting that both Lebanese and Syrians are currently staying in UNRWA schools. He added that talks with the government about sheltering displaced Syrians have been positive.

Riza also expressed concern about the school year and children’s education.

Prolonged Conflict

The United Nations sees no immediate solution to the humanitarian and military crisis in Lebanon, with Riza stressing that the solution must be political and diplomatic, but first, a ceasefire is needed.

While there is little optimism for an end to the conflict, Riza said, the UN is encouraged by the support from its partners, which helps the organization assist the displaced.

He mentioned the recent evacuation of 1,000 people from Ain Ebel and aid distribution in Tyre, emphasizing the need to ensure that they reach those in need.

Riza called on all sides to respect international and humanitarian laws, allowing safe access for aid workers.

He condemned violations, including the deaths of firefighters, health workers, civil defense staff, and UN personnel, adding that the toll on civilian and health infrastructure is growing.