Int’l Companies Eye Development of Saudi Defense Industries

Several international defense companies have voiced their aspirations for participating in Saudi Arabia’s journey to develop its military industry through localizing technologies, productions, and jobs and expanding the vocational training sector in the Kingdom’s defense sector.

These companies are partaking in the four-day defense exhibition, the World Defense Show (WDS), which Saudi Arabia inaugurated on Sunday in Riyadh.

Hundreds of international companies from different countries are participating at the WDS to review the latest systems and technologies.

“The US Pavilion has 75 companies showcasing their products at the WDS - around 20% are present for the first time in the Kingdom,” revealed Tarek Solomon, Chairman of the American Chamber of Commerce in Saudi Arabia.

Founded by Saudi Arabia’s General Authority for Military Industries (GAMI), the WDS is set to be held every two years by showcasing the latest technological developments from around the globe.

The WDS will accelerate the future of the military industry by showcasing the latest technological developments from around the globe, demonstrating defense interoperability across all major domains: air, land, sea, space and security systems, said GAMI Governor Ahmad Al-Ohali.

“Saudi Arabia’s interest in the exhibition embodies the Kingdom’s Vision to be specialized and rise to the ranks of the best defense exhibitions in the world,” he added, noting that the WDS enjoys integrative support from all partners in the public and private sectors.

Hundreds of military delegations from 70 countries are participating at WDS’ first edition.

Al-Ohali added that the directive of Crown Prince Mohammed bin Salman to organize the WDS was to support the realization of the Kingdom’s ambitions and aspirations towards strengthening national military industrialization capabilities, its sustainable prosperity, and contributing to the enrichment of the state.

The governor noted that holding the WDS reflects a strategy for opening the doors of investment and establishing qualitative partnerships.

Opportunities are open to all manufacturers and international service providers to participate in achieving the vision of Saudi Arabia.

At the WDS, international companies displayed a range of their various defense products and showcased their strategy for participating in developing Saudi Arabia’s defense military industries through various equipment, systems, and technologies.

At the same time, the training sector is of broad interest to international companies.

The four-day show, which includes 15 national pavilions with a total exhibition area of 800,000 square meters, attracted military delegations from 80 countries and regions. It is expected to attract around 30,000 visitors before ending on March 9.

The WDS is one of the Kingdom’s strategic tools for supporting Saudi efforts to localize over 50% of its spending on equipment and military services by 2030.

President of Boeing Saudi Arabia Ahmed Jazzar said that the WDS has succeeded in presenting a vast capacity in the Saudi defense industries sector, adding that Boeing was participating with all its weight at the exhibition.

He pointed out that the extensive economic reforms witnessed by the Kingdom had brought about a significant shift in its business environment.

Speaking to Asharq Al-Awsat, Jazzar reaffirmed that Boeing has a historical connection with the Kingdom and is considered one of the main founders of the first companies in Saudi Arabia’s defense sector.

Boeing’s pursuit of localizing industries, training cadres, and supporting scientific research in Saudi Arabia aligns with the Kingdom’s Vision 2030, noted Jazzar.

Boeing continues to work with the Kingdom and regional governments to ensure progress is made in its capabilities in the defense sector and future services sector.

The Chicago-based aerospace and defense contractor said that the WDS is a key international platform for Boeing to highlight its products and services that support and advance Saudi Arabia and the wider region’s defense and services requirements.

Boeing Defense Space & Security (BDS) backlog now stands at $60 billion with 33% of that coming from outside the United States. The 2021 Boeing Market Outlook also projects the defense and space market opportunity will remain consistent with last year’s forecast at $2.6 trillion during the next decade.

This spending projection continues to reflect the ongoing importance of military aircraft, autonomous systems, satellites, spacecraft, and other products for national and international defense, with 40% of expenditures expected to originate outside of the US.

For its part, Airbus announced its participation in the WDS through a wide range of advanced products, technologies, and innovations capable of shaping the future of the global aviation sector.

The aerospace company said that the event is an ideal opportunity for it to confirm its commitment to the localization program and to showcase its strong presence in Saudi Arabia, which is based on strategic partnerships that contribute to the development of local sectors by providing expertise, services and products aimed at achieving the goals of customers and partners in the Kingdom.

Airbus had recently signed a number of agreements in Saudi Arabia.

These deals varied between joint projects and memoranda of understanding to exchange knowledge, including a joint project with the Saudi Arabian Military Industries (SAMI) to provide military aviation services and maintenance, repair, and renewal capabilities.

Airbus also signed a memorandum of understanding with the Prince Sultan Aviation Academy to provide opportunities in aviation training.

“We look forward to the WDS as a historic opportunity for one-to-one meetings to strengthen British-Saudi relations... At the UK pavilion, we are bringing together military industries sectors from all government ministries to highlight British expertise,” said the director of the British Defense and Security Organization at the Ministry of International Trade Mark Goldsack.

The United States imposed new sanctions on Russia's Gazprombank on Thursday, the Treasury Department said, as President Joe Biden steps up actions to punish Moscow for its invasion of Ukraine before he leaves office in January.
The move, which wields the department's most powerful sanctions tool, effectively kicks Gazprombank out of the US banking system, bans its trade with Americans and freezes its US assets, Reuters reported.
Gazprombank is one of Russia's largest banks and is partially owned by Kremlin-owned gas company Gazprom. Since Russia's invasion in February 2022, Ukraine has been urging the US to impose more sanctions on the bank, which receives payments for natural gas from Gazprom's customers in Europe.
The fresh sanctions come days after the Biden administration allowed Kyiv to use US ATACMS missiles to strike Russian territory. On Tuesday, Ukraine fired the weapons, the longest range missiles Washington has supplied for such attacks on Russia, on the war's 1,000th day.
The Treasury also imposed sanctions on 50 small-to-medium Russian banks to curtail the country's connections to the international financial system and prevent it from abusing it to pay for technology and equipment needed for the war. It warned that foreign financial institutions that maintain correspondent relationships with the targeted banks "entails significant sanctions risk."
"This sweeping action will make it harder for the Kremlin to evade US sanctions and fund and equip its military," Treasury Secretary Janet Yellen said. "We will continue to take decisive steps against any financial channels Russia uses to support its illegal and unprovoked war in Ukraine."
Gazprombank said Washington's latest move would not affect its operations. The Russian embassy in Washington did not respond to requests for comment.
Along with the sanctions, Treasury also issued two new general licenses authorizing US entities to wind down transactions involving Gazprombank, among other financial institutions, and to take steps to divest from debt or equity issued by Gazprombank.
Gazprombank is a conduit for Russia to purchase military materiel in its war against Ukraine, the Treasury said. The Russian government also uses the bank to pay its soldiers, including for combat bonuses, and to compensate the families of its soldiers killed in the war.
The administration believes the new sanctions improve Ukraine's position on the battlefield and ability to achieve a just peace, a source familiar with the matter said.
COLLATERAL IMPACT
While Gazprombank has been on the administration's radar for years, it has been seen as a last resort because of its focus on energy and the desire to avoid collateral impact on Europe, a Washington-based trade lawyer said.
"I think that the current administration is trying to put as much pressure and add as many sanctions as possible prior to January 20th to make it harder for the next administration to unwind," said the lawyer, Douglas Jacobson.
Officials in Slovakia and Hungary said they were studying the impacts of the new US sanctions.
Trump would have the power to remove the sanctions, which were imposed under an executive order by Biden, if he wants to take a different stance, Jacobson said.
After Russia's invasion in 2022, the Treasury placed debt and equity restrictions on 13 Russian firms, including Gazprombank, Sberbank and the Russian Agricultural Bank.
The US Treasury has also worked to provide Ukraine with funds from windfall proceeds of frozen Russian assets.

Int’l Companies Eye Development of Saudi Defense Industries