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GAMI Establishes Human Capital Roadmap in Saudi Military Industries

GAMI announces the human capital strategy for local military industries sector. (Asharq Al-Awsat)
GAMI announces the human capital strategy for local military industries sector. (Asharq Al-Awsat)
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GAMI Establishes Human Capital Roadmap in Saudi Military Industries

GAMI announces the human capital strategy for local military industries sector. (Asharq Al-Awsat)
GAMI announces the human capital strategy for local military industries sector. (Asharq Al-Awsat)

The Saudi General Authority for Military Industries (GAMI) launched the human capital strategy for the local military industries sector.

Saudi ministers stressed the importance of localizing the military sector to enhance skills and support the development system through the required policies and regulations.

The ministers indicated that GAMI has a clear strategy regarding distinguished human resources and reliance on national cadres targeting 50 percent localization of national military spending by 2030.

The officials attended the launch of the human capital strategy for the local military industries sector, stressing the need to bridge the gaps and needs of the labor market in the Kingdom in many areas, namely the military and defense industries.

The strategy contributes to bridging the gap between the skills required in the sector and the outputs of university education and technical and vocational training, focusing on more than 800 required skills, resulting in 30,000 technicians, 25,000 services jobs and 12,000 engineers.

Investment strategy

Minister of Investment Khalid al-Falih stressed the importance of the partnership between the public and private sectors in education and training, noting that they help achieve spending efficiency and promote a flexible mechanism in line with the labor market requirements.

Falih said that the national investment strategy has several initiatives that enable competitiveness and investment development, indicating that the ministry's role lies in linking all parties, providing capabilities and attracting investors.

"The localization rate in the military industries sector is promising and rising," he said.

Labor market

For his part, Minister of Human Resources and Social Development (MHRSD) Ahmad al-Rajhi stated that GAMI developed the human capital strategy, coupled with complementary plans to localize the sector.

Rajhi revealed that over 1.9 million citizens work in the private sector, proving that national cadres have succeeded in the economy.

The minister also indicated that 400,000 Saudis joined the labor market in 2021, describing it as a historical number that reflects the strong desire to accelerate the economy and participate in Vision 2030.

"We can bet on the Saudi young people after they showed their ability to bear responsibility and succeeded in all sectors, including the banking, petrochemicals, services, trade, and contracting," Rajhi said, pointing out that the ministry launched 32 Saudization decisions in 2021.

Industrial system

Minister of Industry and Mineral Resources Bandar Alkhorayef announced that the sector's new strategy would focus on increasing locally sourced inputs and adopting 4IR technologies.

He stressed that the two pillars guarantee a competitive and sustainable industrial line at the local and global levels.

GAMI is making significant efforts to create opportunities in the sector, creating a globally competitive industrial sector by converting 4,000 factories to use fourth industrial revolution technology.

Alkhorayef explained that his ministry responds to the directions of the government and issues monthly reports on human capital data in the industrial sector.

The ministry created over 39,000 job opportunities during 2020 and doubled that number to reach 77,000 jobs in 2021.

Human capital strategy

GAMI launched the human capital strategy for the local military industries sector at the Ritz-Carlton Hotel in Riyadh, with several ministers and officials from the government and private sectors.

GAMI Governor Ahmed al-Ohali said the Kingdom is moving towards the localization of this promising sector, aiming to reach more than 50 percent of government spending on military equipment and services by 2030.

The plan aims to develop industries, research, technologies, and national competencies and provide job opportunities for Saudi youth, increasing the sector's contribution to the national economy.

He indicated that the strategy aims to establish a stimulating system for the development of human cadres to ensure their readiness to achieve the Saudization goals of the sector.

"It is based on the strategy for localizing industries and research in the military industry sector to ensure the readiness and sustainability of people eligible to achieve the objectives of the sector localization," the GAMI governor said.

The human capital strategy aims to enable and build a stimulating system for the development and empowerment of human cadres. It will ensure the readiness and sustainability of qualified forces to localize the sector by developing three main programs represented in educational and training programs.

He pointed out that the strategy aims to empower Saudi workforces by developing training programs and establishing a national academy that focuses on more than 800 skills required in the sector, from 172 job fields.

Ohali added that the strategy's programs included many initiatives, such as the new national military academy to address the skills gap in the industry, with the support and empowerment of the Technical and Vocational Training Corporation and the Human Resources Development Fund (HRDF).

Partnership system

Three dialogue sessions were held during the launch of the human capital strategy for the military and defense industry sector in the Kingdom with ministers, senior officials, and specialists of human resources.

The event began with a ministerial discussion entitled "The Role of the National System in Empowering Human Capital in the Military and Defense Industries to Achieve the Objectives of Vision 2030."

It was attended by ministers of investment, industry and mineral resources, and human resources and social development.

The session addressed investment opportunities and reforms necessary to ensure the establishment of qualitative and effective partnerships and to bridge the gaps and needs of the labor market in the Kingdom.

The ministers stressed the importance of preparing future generations to enter the labor market.

The second session, "The Role of the Military and Defense Industries in Creating Diversified Career Paths," addressed the development and empowerment of the human element.

They discussed their impact on human resources in developing and empowering and developing talents, skills, and expertise through specialized technical and professional training programs.

The session was attended by the Chairman of the Board of Directors of the Education and Training Evaluation Commission Khaled al-Sabti, Chief of Staff First Lieutenant-General Fayyad al-Ruwaili, Governor of GAMI, and Governor of the Technical and Vocational Training Corporation Ahmed al-Fahid.

The development

The ceremony concluded with the third session: "The Role of Education and Training in Developing, Empowering, and Preparing Human Capital for the Military and Defense Industries."

The attendees discussed the importance of the human resources strategy project in advancing the sector's development by aligning the outputs and programs of educational institutions with the needs.

They also addressed forming partnerships with other key industries, aiming to develop qualified human capital to lead the future of this sector.

The session was attended by President of the King Fahd University of Petroleum and Minerals Mohammad al-Saqqaf, General Manager of the Human Resources Development Fund (Hadaf) Turki al-Jawini, CEO of the Saudi Arabian Military Industries (SAMI) Walid Abu Khaled, and CEO of Lockheed Martin Saudi Arabia Ltd. Joseph Rank.

Agreements and partnerships

On the sidelines of the ceremony, several memoranda of understanding (MoU) relating to the development and empowerment of human capital in the military and defense industries sector were announced between GAMI, the Ministry of Investment, and the UK-based Cranfield University.

GAMI also signed an MoU with Leonardo Company to create and develop investment opportunities in education and train specialized military industries.

The MoU establishes cooperation to identify and develop institutional and academic partnerships in the Kingdom, develop some programs and graduation projects, and launch short and long courses relating to the sector's needs.

It also creates opportunities for university educational scholarships in the military, defense, and security industries.

The MoU calls for cooperation in basic and applied scientific research and creates majors in the military and defense industries with educational and training authorities.

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Business

Saudi Integration of Energy, Industry, and Mining Aims to Maximize National Wealth

Saudi Energy Minister Prince Abdulaziz bin Salman visits a national factory in the capital Riyadh. (SPA)
Saudi Energy Minister Prince Abdulaziz bin Salman visits a national factory in the capital Riyadh. (SPA)
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Saudi Integration of Energy, Industry, and Mining Aims to Maximize National Wealth

Saudi Energy Minister Prince Abdulaziz bin Salman visits a national factory in the capital Riyadh. (SPA)
Saudi Energy Minister Prince Abdulaziz bin Salman visits a national factory in the capital Riyadh. (SPA)

The appointment of Prince Abdulaziz bin Salman as Saudi Arabia’s minister of industry and mineral resources, while retaining the energy portfolio, reflects a strategic push to strengthen integration among three of the Kingdom’s most important economic sectors. Analysts say placing energy, industry, and mining under a single ministry could accelerate policy coordination, strengthen domestic value chains, and advance the goals of Vision 2030 by diversifying the economy and maximizing the value of national resources.

The move stems from the close interdependence of the three sectors, which form an integrated chain - from energy production and mineral extraction to industrial manufacturing that transforms natural resources into higher-value products. Greater coordination is expected to enhance Saudi Arabia’s competitiveness, improve the efficiency of resource investment, and support a more diversified and sustainable industrial base.

Experts told Asharq Al-Awsat that the restructuring marks a new phase in implementing national strategies. They noted that the industrial sector has undergone major transformation since the Ministry of Industry and Mineral Resources was established as an independent entity and the National Industrial Strategy was launched. Bringing the Kingdom’s key economic portfolios together, they said, will better align policies and reinforce value chains in line with Vision 2030.

Economic diversification

said Saudi Arabia’s economic transformation since the launch of Vision 2030 has been guided by successive strategies culminating in the broader objective of economic diversification and increasing the contribution of key sectors to GDP.

According to Al-Buainain, the initial phases focused on building the legislative framework, developing a roadmap to achieve strategic goals, and moving into implementation, which has already delivered several targets ahead of schedule.

He credited former Minister of Industry and Mineral Resources Bandar Alkhorayef with leading major legislative, regulatory, and executive reforms, saying he left the ministry “at the peak of its performance” after achieving its objectives.

Integrated value chains

Al-Buainain said integrating the three portfolios is expected to accelerate implementation of the National Industrial and Mining Strategy, particularly in the mining sector, which has significant potential to expand its contribution to the economy. He added that the sector requires bold decisions to accelerate progress toward Vision 2030, especially its economic diversification objectives.

He also stressed the importance of integrating economic value chains under unified decision-making. Linking the mining and energy portfolios, he said, would strengthen Saudi Arabia’s hand in attracting foreign investment by enabling it to combine highly sought-after investment opportunities with less sought-after ones, creating deal structures that maximize benefits for the Kingdom.

Economic analyst Ahmed Al-Shehri said the appointment carries significant economic implications. Energy is the primary input for industry, mining provides the raw materials, and manufacturing converts them into value-added products, he said. Bringing all three sectors under one umbrella would therefore facilitate integrated planning instead of managing each independently.

Al-Shehri added that the move would also boost local value creation by shifting policy away from exporting raw materials toward developing advanced domestic industries, increasing economic returns and creating high-skilled jobs.

He said unified policymaking would improve investment efficiency by reducing complexity and providing greater clarity for investors. Ultimately, he argued, integrating energy, industry, and mining will accelerate economic diversification by supporting Saudi Arabia’s transition from a resource-exporting economy to one driven by manufacturing and industrial production.

 

 

 

Business

Gold Falls Over 1% as Oil Rises and Strait of Hormuz Fears Reignite

An employee displays gold bars at the Korea Gold Exchange store in Seoul (AFP)
An employee displays gold bars at the Korea Gold Exchange store in Seoul (AFP)
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Gold Falls Over 1% as Oil Rises and Strait of Hormuz Fears Reignite

An employee displays gold bars at the Korea Gold Exchange store in Seoul (AFP)
An employee displays gold bars at the Korea Gold Exchange store in Seoul (AFP)

Gold prices slid more than 1% on Monday as fears of a closure of the Strait of Hormuz drove oil prices sharply higher, reviving expectations of elevated interest rates to combat inflationary pressures from escalating hostilities in the Middle East.

Spot gold dropped 1.5% to $4,060.49 per ounce by 0735 GMT. US gold futures for August delivery were down 1% at $4,069.50, Reuters reported.

US and Iranian forces have exchanged heavy ⁠missile and drone assaults, ⁠with Tehran targeting US facilities in states across the Gulf on Sunday and saying it had again closed the vital Strait of Hormuz.

Oil prices jumped about 4%, the dollar and US Treasury yields climbed, and share markets slipped in Asia.

"Any breakout of violence in the Gulf is accompanied by pressure on gold," said Nicholas Frappell, global head ⁠of institutional markets at ABC Refinery.

"The question is, if the Strait of Hormuz remains effectively or partially closed, does that lead to a deflationary effect, further down the road, that might actually be supportive for gold if you have demand destruction leading to lower economic activity," Frappell added.

Kevin Warsh's first semiannual testimony before Congress as Federal Reserve chair, along with a slate of key US economic data, including June CPI, PPI and retail sales, will be closely watched this week for fresh clues on the economy, inflation and the monetary policy outlook.

Remarks from Fed policymakers, ⁠including Vice ⁠Chair Michelle Bowman and Governor Christopher Waller, later in the day are also in focus as they could provide insights on how inflationary pressures are affecting the central bank's stance on interest rate hikes.

Traders are currently pricing in a 72% chance of a US Fed interest rate hike in September, up from about 63% last week, according to the CME FedWatch Tool.

COMEX gold speculators trimmed their net long positions by 1,964 contracts to 114,854 in the week to July 7, data released on Friday showed, following three consecutive weeks of increases.

Elsewhere, spot silver declined 2.5% to $58.35 per ounce, platinum shed 0.5% to $1,619.72, and palladium fell 1.5% to $1,257.82.

Business

S.Korea Flags Record 2027 Budget of Over $530 Billion as AI Chip Boom Lifts Revenues

South Korean Defense Minister Ahn Gyu-back (R) talks with National Security Adviser Wi Sung-lac (C) during the National Fiscal Strategy Meeting, chaired by South Korean President Lee Jae Myung, at the presidential office Cheong Wa Dae in Seoul, South Korea, 13 July 2026. EPA/YONHAP
South Korean Defense Minister Ahn Gyu-back (R) talks with National Security Adviser Wi Sung-lac (C) during the National Fiscal Strategy Meeting, chaired by South Korean President Lee Jae Myung, at the presidential office Cheong Wa Dae in Seoul, South Korea, 13 July 2026. EPA/YONHAP
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S.Korea Flags Record 2027 Budget of Over $530 Billion as AI Chip Boom Lifts Revenues

South Korean Defense Minister Ahn Gyu-back (R) talks with National Security Adviser Wi Sung-lac (C) during the National Fiscal Strategy Meeting, chaired by South Korean President Lee Jae Myung, at the presidential office Cheong Wa Dae in Seoul, South Korea, 13 July 2026. EPA/YONHAP
South Korean Defense Minister Ahn Gyu-back (R) talks with National Security Adviser Wi Sung-lac (C) during the National Fiscal Strategy Meeting, chaired by South Korean President Lee Jae Myung, at the presidential office Cheong Wa Dae in Seoul, South Korea, 13 July 2026. EPA/YONHAP

South Korea said on Monday it would draw up record budget spending of more than 800 trillion won ($530.97 billion) for fiscal 2027, supported by stronger tax revenues from the booming AI chip industry.

Budget Minister Park Hong-keun, speaking at a national fiscal strategy meeting, said the spending plan would be financed through higher tax receipts and expenditure cuts. The proposed budget compares with ⁠this year's 727.9 ⁠trillion won spending plan, excluding supplementary budgets.

The government said three "mega-projects" — investments in chips, AI data centers and physical AI — would receive top fiscal priority, adding that it would secure funding capacity through a major restructuring ⁠of existing spending programs, rather than relying solely on increased tax revenue.

President Lee Jae Myung said the government would use all available means to ensure that corporate investments proceed on schedule.

"Additional tax revenue coming at this time is a precious resource to be used at a golden time when global AI dominance will be determined," Lee said.

Budget Minister Park said ⁠the ⁠government would seek to restructure about 50 trillion won in spending, twice the level of the previous year, through a review of discretionary and mandatory expenditures and cuts to underperforming programs.

South Korea plans to launch a Future Response Fund as a strategic investment platform, setting aside tax revenue that exceeds long-term trends and investing it in four areas: youth, growth engines, regions and talent, the government said.