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Defense Aircraft Maintenance Focal Interest of Saudi Companies

A part of the agreements that took place on the sidelines of the World Defense Show (Asharq Al-Awsat)
A part of the agreements that took place on the sidelines of the World Defense Show (Asharq Al-Awsat)
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Defense Aircraft Maintenance Focal Interest of Saudi Companies

A part of the agreements that took place on the sidelines of the World Defense Show (Asharq Al-Awsat)
A part of the agreements that took place on the sidelines of the World Defense Show (Asharq Al-Awsat)

Defense aircraft maintenance dominated the interests of Saudi companies at the World Defense Show (WDS) in the Saudi capital, Riyadh. Companies emphasized efforts to commit to localizing defense industries and technical investment, at a time when cooperation agreements and memoranda of partnerships for building military ships and helicopter platforms were a prominent focus in deals signed on the WDS’ last day.

The four-day WDS 2022, which began on March 6, witnessed the signing of a deal between the Saudi-based Overhaul and Maintenance Company (OMC) and the Saudi Technology Development and Investment Company (TAQNIA).

OMC also signed another deal with the Saudi Authority for Data and Artificial Intelligence (SDAIA). Its deal with SDAIA aims to develop innovative geospatial products and services that contribute to enhancing local content and serving the Saudi market, to enhance the Kingdom's global position in the fields of data and artificial intelligence.

BAE Systems Saudi Arabia and SDAIA signed a deal to provide information technology services, cybersecurity services, as well as professional services and manpower for institutions.

A second deal was signed between the two. It aims to develop operational and technical capabilities, advance security operations centers and network security, as well as support data management analysis systems by participating with specialized experts, developing strategies for future improvement.

Abdulatif Al-Sheikh, CEO of OMC, confirmed to Asharq Al-Awsat that the company is continuing to localize the defense industry in the Kingdom, indicating that the company owns three companies in the defense field.

“Companies in Riyadh and Jeddah have invested in qualitative capabilities and national competencies working in training Saudi technicians through a package of training programs, most of which are internationally accredited by the European International Safety Organization,” Al-Sheikh told Asharq Al-Awsat.

International Systems Engineering (ISE) CEO Majid AlMuzairi told Asharq Al-Awsat that his company was working to expand the scope of its projects, in addition to signing many agreements and strategies with a number of government agencies and related companies on the sidelines of the WDS.

AlMuzairi stressed that cybersecurity is one of the Kingdom’s priorities and noted that ISE is launching a pivotal action plan in the digital transformation process.

He revealed the company's vision to be the first provider of information services and technology management for companies operating in the defense and national security sectors.

Saudi Maintenance and Supply Chain Management Company (SMSCMC) CEO Jeremy Charmak told Asharq Al-Awsat that his company is using its capabilities to push the local industry in the Kingdom, as it currently has eight branches, six of which are in Saudi Arabia.

He revealed that the Saudization rate at his company is up to 72%.

Charmak pointed out that SMSCMC is launching very important training programs in the transportation of sensitive and dangerous equipment and safety equipment, indicating that the company specializes in supply chains and logistics services, and was established in 2006.

International Maritime Industries (IMI) , the largest shipyard in the MENA region, has expanded its partnership with Hyundai Heavy Industries (HHI) to enable the construction of naval vessels at its yard in Saudi Arabia.

The extension of the existing memorandum of understanding (MoU) between IMI and HHI will lead to further cooperation between the two partners in areas including naval vessel research, development and construction, and the localization of engine manufacturing for naval ships in the kingdom.

It will also deliver further knowledge transfer through the training of IMI’s Saudi team members at HHI facilities, providing them with new skills and future career opportunities, as well as the development of further commercial relations, said a statement.

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US Economy Grew at Solid 3% Rate Last Quarter, Government Says in Final Estimate

FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)
FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)
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US Economy Grew at Solid 3% Rate Last Quarter, Government Says in Final Estimate

FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)
FILE - The New York Stock Exchange, at rear, is shown on Sept. 24, 2024, in New York. (AP Photo/Peter Morgan, File)

The American economy expanded at a healthy 3% annual pace from April through June, boosted by strong consumer spending and business investment, the government said Thursday, leaving its previous estimate unchanged.
The Commerce Department reported that the nation's gross domestic product — the nation's total output of goods and services — picked up sharply in the second quarter from the tepid 1.6% annual rate in the first three months of the year, The Associated Press reported.
Consumer spending, the primary driver of the economy, grew last quarter at a 2.8% pace, down slightly from the 2.9% rate the government had previously estimated. Business investment was also solid: It increased at a vigorous 8.3% annual pace last quarter, led by a 9.8% rise in investment in equipment.
The final GDP estimate for the April-June quarter included figures showing that inflation continues to ease, to just above the Federal Reserve’s 2% target. The central bank’s favored inflation gauge — the personal consumption expenditures index, or PCE — rose at a 2.5% annual rate last quarter, down from 3% in the first quarter of the year. Excluding volatile food and energy prices, so-called core PCE inflation grew at a 2.8% pace, down from 3.7% from January through March.
The US economy, the world's biggest, displayed remarkable resilience in the face of the 11 interest rate hikes the Fed carried out in 2022 and 2023 to fight the worst bout of inflation in four decades. Since peaking at 9.1% in mid-2022, annual inflation as measured by the consumer price index has tumbled to 2.5%.
Despite the surge in borrowing rates, the economy kept growing and employers kept hiring. Still, the job market has shown signs of weakness in recent months. From June through August, America's employers added an average of just 116,000 jobs a month, the lowest three-month average since mid-2020, when the COVID pandemic had paralyzed the economy. The unemployment rate has ticked up from a half-century low 3.4% last year to 4.2%, still relatively low.
Last week, responding to the steady drop in inflation and growing evidence of a more sluggish job market, the Fed cut its benchmark interest rate by an unusually large half-point. The rate cut, the Fed’s first in more than four years, reflected its new focus on shoring up the job market now that inflation has largely been tamed.
Some other barometers of the economy still look healthy. Americans last month increased their spending at retailers, for example, suggesting that consumers are still able and willing to spend more despite the cumulative impact of three years of excess inflation and high borrowing rates. The nation’s industrial production rebounded. The pace of single-family-home construction rose sharply from the pace a year earlier.
And this month, consumer sentiment rose for a third straight month, according to preliminary figures from the University of Michigan. The brighter outlook was driven by “more favorable prices as perceived by consumers” for cars, appliances, furniture and other long-lasting goods.
A category within GDP that measures the economy’s underlying strength rose at a healthy 2.7% annual rate, though that was down from 2.9% in the first quarter. This category includes consumer spending and private investment but excludes volatile items like exports, inventories and government spending.
Though the Fed now believes inflation is largely defeated, many Americans remain upset with still-high prices for groceries, gas, rent and other necessities. Former President Donald Trump blames the Biden-Harris administration for sparking an inflationary surge. Vice President Kamala Harris, in turn, has charged that Trump’s promise to slap tariffs on all imports would raise prices for consumers even further.
On Thursday, the Commerce Department also issued revisions to previous GDP estimates. From 2018 through 2023, growth was mostly higher — an average annual rate of 2.3%, up from a previously reported 2.1% — largely because of upward revisions to consumer spending. The revisions showed that GDP grew 2.9% last year, up from the 2.5% previously reported.
Thursday’s report was the government’s third and final estimate of GDP growth for the April-June quarter. It will release its initial estimate of July-September GDP growth on Oct. 30.