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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 Coordinator in Syria: Optimistic About Reconstruction if Transition Succeeds

UN Resident and Humanitarian Coordinator in Syria Adam Abdelmoula (Asharq Al-Awsat)
UN Resident and Humanitarian Coordinator in Syria Adam Abdelmoula (Asharq Al-Awsat)
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UN Coordinator in Syria: Optimistic About Reconstruction if Transition Succeeds

UN Resident and Humanitarian Coordinator in Syria Adam Abdelmoula (Asharq Al-Awsat)
UN Resident and Humanitarian Coordinator in Syria Adam Abdelmoula (Asharq Al-Awsat)

Since 2012, the United Nations Resident Coordinator's developmental role in Syria has been put on hold by the UN. However, the fall of former president Bashar al-Assad’s regime has revived this role.

In an interview with Asharq Al-Awsat, Adam Abdelmoula, the UN Resident and Humanitarian Coordinator in Syria, outlined plans for reconstruction in partnership with the new government in Damascus.

Abdelmoula expressed “great optimism” about Syria’s rebuilding but stressed that the key to rapid recovery is the “success of the transition.”

He explained that this means the transitional period—until a new constitution is agreed upon and an elected government is formed—must be secure and supported by consensus among all Syrians.

Additionally, momentum is building for Syria’s reconstruction, with Gulf Cooperation Council (GCC) countries proposing an international donor conference next spring to raise funds.

Abdelmoula said the UN is consulting with the new Syrian administration to prepare projects and cost estimates for the event.

The UN is preparing aid and technical support for Syria’s new administration, along with a development plan focusing on rebuilding infrastructure, restoring electricity, reviving health services, and supporting agriculture and irrigation to boost the economy.

“We’ve informed the new administration of our work through a letter sent to the foreign minister,” said Abdelmoula.

He told Asharq Al-Awsat that the UN’s “early recovery strategy,” launched last November, is still in place, though its fund has yet to be registered with the trust fund office in New York.

He promised to prioritize its registration and said: “When reconstruction begins in Syria, we will work to establish a dedicated reconstruction fund.”

As for relying on donors for rebuilding Syria, Abdelmoula said: “The UN doesn’t have the billions of dollars needed, but lessons from similar crises show the importance of focusing on strategic priorities, especially rebuilding the economic foundations.”

Abdelmoula noted that UN agencies can secure funding from donors who support development activities in various countries, a process that had been stalled in Syria for over a decade.

“Since the fall of the Syrian regime, many countries, particularly Arab and neighboring ones, have provided significant aid, and this is expected to increase,” he said.

“There are also positive signals from donors, especially Europeans, about boosting humanitarian aid, including continuing the annual Brussels Conference to support Syria,” added Abdelmoula.

He revealed that the mission has learned the European Union will resume hosting the conference this year, despite the fall of Assad’s regime.

The UN official addressed Syria’s sanctions, stating that those harming the Syrian people should be lifted.

He noted that the recent Riyadh meeting showed a strong intention from key international players to ease or fully lift the sanctions.

Abdelmoula pointed out the US decision to suspend some sanctions for six months and mentioned an upcoming EU foreign ministers' meeting to discuss either lifting or easing sanctions to support Syria’s economy, humanitarian aid, banking, and market access.

He explained that some sanctions are imposed by countries like the US, Germany, France, and the UK, which are discussing the best way forward. However, he said fully lifting sanctions may take time due to laws like the US Caesar Act.

Abdelmoula stressed that efforts should focus on reducing the impact of sanctions under the Caesar Act and working to pass new legislation to cancel it. He said this should also apply to sanctions from other countries in the form of laws.

He explained that lifting sanctions would make it easier for the UN and help both the Syrian government and people. A direct benefit would be Syria’s ability to access direct funding, concessional loans from international funds and the World Bank, and grants.

Abdelmoula explained that the UN’s humanitarian work in Syria focuses on helping people in need, regardless of which political group controls the area.

“Our efforts have included people in regions outside the former regime's control in northwestern and northeastern Syria,” he said.

As the UN Resident Coordinator, Abdelmoula represents the UN in the country.

“The government recognized until December 8 was Bashar al-Assad’s, which is why my credentials were sent to it, as is the usual practice,” he noted.

Abdelmoula also pointed out that the UN’s development work in Syria was halted since 2012 due to a UN decision.

“After the regime fell, we announced that we would resume our development work,” he affirmed.