عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Int’l Companies Eye Development of Saudi Defense Industries

A panel discussion at the World Defense Show which launched on Sunday in Riyadh (Asharq Al-Awsat)
A panel discussion at the World Defense Show which launched on Sunday in Riyadh (Asharq Al-Awsat)
TT
TT

Int’l Companies Eye Development of Saudi Defense Industries

A panel discussion at the World Defense Show which launched on Sunday in Riyadh (Asharq Al-Awsat)
A panel discussion at the World Defense Show which launched on Sunday in Riyadh (Asharq Al-Awsat)

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.

Most Viewed

 
 
Business

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
TT
TT

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
TT
TT

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
TT
TT

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.