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Saudi Defense Ministry Concludes 10 Agreements with Local, Int'l Companies

The World Defense Show features latest technologies in the fields of land, sea, air, space and information security. (Asharq Al-Awsat)
The World Defense Show features latest technologies in the fields of land, sea, air, space and information security. (Asharq Al-Awsat)
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Saudi Defense Ministry Concludes 10 Agreements with Local, Int'l Companies

The World Defense Show features latest technologies in the fields of land, sea, air, space and information security. (Asharq Al-Awsat)
The World Defense Show features latest technologies in the fields of land, sea, air, space and information security. (Asharq Al-Awsat)

On the third day of Saudi Arabia’s World Defense Show, which coincided with International Women’s Day, participants focused on stimulating the role of female leaders in defense and security worldwide.

Saudi ambassador to the United States, Princess Rima bint Bandar bin Sultan bin Abdulaziz said on Monday that empowering Saudi women was at the heart of Vision 2030, underlining the importance of sustaining this momentum at the global level.

She added that the Women in Defense program, which was unveiled during the major defense event hosted in Riyadh, provided a unique platform that highlight the importance of achieving equality and enhancing the role of women in the sector.

The program inauguration ceremony was held in the presence of Phebe Novakovic, CEO of General Dynamics, and Marion Blakey, former President and CEO of Rolls-Royce North America and Director of the Federal Aviation Administration, and a member of the Supervisory Committee of the World Defense Show.

Other prominent female attendees included Dana Stroul, Deputy Assistant Secretary of Defense for the Middle East, Heidi Grant, Vice President of Business Development for Boeing and former President of the US Defense Security Cooperation Agency, Dr. Moudhi Al-Jamea, Vice President of the Saudi Telecom Company, and Mashael Al-Shammari, a consultant in the field of space technology and the first female aeronautical engineer in the GCC.

Penny MacPherson, head of the Women in Defense program at the World Defense Show, said that the exhibition comes at an appropriate time for both Saudi Arabia and the global defense industry, adding that the presence of women leaders from all over the world will support their advancement at the local and international levels.

Meanwhile, the Saudi Ministry of Defense signed a number of agreements on Monday, including a contract with Naval Group Arabia Ltd. Worth more than 800 million riyals ($213 million), to provide technical and logistical support services for the Royal Saudi Navy. The contract was signed by Dr. Khaled Al-Biyari, Assistant Minister of Defense for Executive Affairs, and Didier Fouilly, CEO of Naval Group Arabia.

The ministry also signed a contract worth SR3 billion with Hanwha, a Korean defense company. The contract was signed for the Riyal Saudi Land Forces to support its defense capabilities, in addition to localization and supply chain services.

The Ministry of Defense also concluded three different contracts worth SR1.7 billion with Alsalam Aerospace Industries for providing maintenance services for the Royal Saudi Air Force.

With an amount exceeding 400 million riyals ($106 million), the ministry concluded a contract with the Saudi Aircraft Maintenance and Configuration Company, for the Royal Air Force, for technical support services for C-130 aircraft. The contract was signed by Ibrahim Al-Suwaid, Undersecretary of the Ministry of Defense for Procurement and Armament, and Engineer Muneer Bakhsh, CEO of the company.

Moreover, a deal worth more than SR430 million was signed with Norinco, a Chinese company, aimed at securing different types of ammunition for the General Directorate of Arms and Ammunitions.

The Ministry of Defense also signed an SR460 million contract with Poongsan Corporation to secure various types of ammunition for the General Directorate of Arms and Ammunitions.

Another deal was signed with Korean LIG Nex1, amounting to more than 250 million riyals ($66 million), to acquire defense capabilities and electro-optical equipment for the Saudi Royal Navy.

In comments, Al-Biyari said: “The contracts concluded by the Ministry of Defense come in accordance with the directives of Crown Prince Mohammad bin Salman bin Abdulaziz, and the follow-up of Prince Khalid bin Salman, Deputy Minister of Defense, with the aim of raising the readiness of the armed forces, sustaining systems, localizing military industries and maximizing the use of local content.”

He added that contracts forged with local and international companies confirmed the Saudi leadership’s great support and attention to the armed forces, whether in the field of systems manufacturing or assigning.

The Ministry of Defense is participating in the World Defense Show 2022 as the main partner. The exhibition discussed over three days the latest technologies in the fields of land, sea, air, space and information security, and showcased the capabilities of integrated and innovative defense solutions.

Founded by the General Authority for Military Industries, the event featured some of the world’s most cutting-edge, futuristic defense equipment. Almost 600 global companies are taking part in the event, representing over 40 countries.

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Business

Saudi Aramco Achieves 70% Local Content Target through iktva Program

Saudi Aramco Achieves 70% Local Content Target through iktva Program
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Saudi Aramco Achieves 70% Local Content Target through iktva Program

Saudi Aramco Achieves 70% Local Content Target through iktva Program

Saudi Aramco announced on Wednesday that its supply chain transformation program, iktva (In-Kingdom Total Value Add), has achieved its target of reaching 70% local content.

Building on this milestone, the company said that it plans to increase local content in its goods and services procurement to 75% by 2030.

Since its launch, the iktva program has contributed more than $280 billion to the Kingdom’s gross domestic product, reinforcing its role as a key driver of industrial development, economic diversification, and long-term financial resilience.

Through the localization of goods and services, the program has strengthened the resilience and reliability of Aramco’s supply chains, enhanced operational continuity, reduced supply chain vulnerabilities, and provided protection against global cost inflation - capabilities that proved critical during periods of disruption.

Aramco President and CEO Amin Nasser expressed pride in the scale of transformation achieved through iktva and its positive impact on the Kingdom’s economy, noting that the announcement represents a major milestone in the program’s journey and reflects a significant leap in Saudi Arabia’s industrial development, fully aligned with the Kingdom’s national vision.

“iktva is a core pillar of Aramco’s strategy to build a competitive national industrial ecosystem that supports the energy sector while enabling broader economic growth and creating thousands of job opportunities for Saudi nationals,” he stressed.

By localizing supply chains, the program ensures operational reliability and mitigates disruptions that may affect global supply chains, he added, noting that its cumulative impact over a decade demonstrates the sustained value it continues to generate.

Over the past decade, iktva has emerged as a leading example of supply-chain-driven economic transformation, converting Aramco’s project spending into domestic economic multipliers that have created jobs, improved productivity, stimulated exports, and strengthened supply chain resilience.

The program has identified more than 200 localization opportunities across 12 key sectors, representing an annual market value of $28 billion. These opportunities have translated into tangible investment outcomes, catalyzing more than 350 investments from 35 countries in new manufacturing facilities within the Kingdom, supported by approximately $9 billion in capital. These investments have enabled the local manufacture of 47 strategic products in Saudi Arabia for the first time.

iktva has also contributed to the creation of more than 200,000 direct and indirect jobs across the Kingdom, further strengthening the local industrial base and national capabilities. To support continued growth, the program organized eight regional supplier forums worldwide in 2025, in addition to its biennial forum. These events helped connect global investors, manufacturers, and suppliers with localization opportunities in Saudi Arabia.

Business

AirAsia X Unveils Kuala Lumpur-Bahrain-London Route

FILE PHOTO: Planes from AirAsia are seen on the tarmac of Kuala Lumpur International Airport Terminal 2 (KLIA2) in Sepang, Malaysia, February 26, 2024. REUTERS/Hasnoor Hussain/File Photo
FILE PHOTO: Planes from AirAsia are seen on the tarmac of Kuala Lumpur International Airport Terminal 2 (KLIA2) in Sepang, Malaysia, February 26, 2024. REUTERS/Hasnoor Hussain/File Photo
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AirAsia X Unveils Kuala Lumpur-Bahrain-London Route

FILE PHOTO: Planes from AirAsia are seen on the tarmac of Kuala Lumpur International Airport Terminal 2 (KLIA2) in Sepang, Malaysia, February 26, 2024. REUTERS/Hasnoor Hussain/File Photo
FILE PHOTO: Planes from AirAsia are seen on the tarmac of Kuala Lumpur International Airport Terminal 2 (KLIA2) in Sepang, Malaysia, February 26, 2024. REUTERS/Hasnoor Hussain/File Photo

Malaysian budget carrier AirAsia X on Wednesday unveiled plans to resume flights from Kuala Lumpur to London via a new hub in Bahrain, using the extended range of narrow-body jets to stitch fresh routes alongside established carriers.

The service, due to start in June, would make Bahrain AirAsia X's first hub outside Asia, placing it within reach of busy markets in Southeast Asia, the Middle East and Europe.

It also marks a ‌return to ‌the British capital more than a decade after the airline suspended ‌non-stop ⁠flights from Kuala Lumpur ⁠and retired its Airbus A340 jets.

Co-founder Tony Fernandes said Bahrain could become a regional gateway for underserved secondary cities across Asia, Africa and Europe.

"While ... of course London is a very emotional destination for many people in Southeast Asia, the real aim is to have a bunch of A321s flying maybe 15 times a day to Bahrain," he told Reuters in an interview.

"From Bahrain, you connect to Africa and Europe with a big emphasis ⁠on creating connectivity that doesn't exist."

The move follows Asia's ‌largest low-cost carrier completing its acquisition of the short-haul ‌aviation business from parent Capital A, bringing the group's seven airlines under one umbrella.

Fernandes, also CEO ‌of Capital A, stressed the importance of the Airbus A321XLR, an extra-long-range narrow-body aircraft ‌he said would let the airline replicate its Asian low-cost model on intercontinental routes.

"That aircraft enables me to start thinking we can do what we did in Asia to Europe and Africa," he said, citing potential secondary routes such as Penang to Cologne or Prague.

AirAsia plans to ‌redeploy its larger A330s to longer routes while building up the Bahrain hub, with possible African destinations including the Maghreb region, Egypt, ⁠Morocco, Tanzania and Kenya. ⁠A Bangkok-to-Europe route is also under consideration.

Fernandes played down direct competition with Gulf carriers such as Emirates and Qatar Airways, positioning AirAsia X as a budget option aimed at a different market.

"I'm all about stimulating a new market," he said. "We've got into our little playground (of) 3 billion people, most of them have not been to Europe."

Business

Von der Leyen: EU Must 'Tear Down Barriers' to Become 'Global Giant'

(FILES) European Commission President Ursula von der Leyen delivers a speech in Brussels, on January 22, 2026. (Photo by NICOLAS TUCAT / AFP)
(FILES) European Commission President Ursula von der Leyen delivers a speech in Brussels, on January 22, 2026. (Photo by NICOLAS TUCAT / AFP)
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Von der Leyen: EU Must 'Tear Down Barriers' to Become 'Global Giant'

(FILES) European Commission President Ursula von der Leyen delivers a speech in Brussels, on January 22, 2026. (Photo by NICOLAS TUCAT / AFP)
(FILES) European Commission President Ursula von der Leyen delivers a speech in Brussels, on January 22, 2026. (Photo by NICOLAS TUCAT / AFP)

The EU must "tear down the barriers" that prevent it from becoming a truly global economic giant, European Commission chief Ursula von der Leyen said Wednesday, ahead of leaders' talks on making the 27-nation bloc more competitive.

"Our companies need capital right now. So let's get it done this year," the commission president told EU lawmakers as she outlined key steps to bridging the gap with China and the United States.

"We have to make progress one way or the other to tear down the barriers that prevent us from being a true global giant," she said, calling the current system "fragmentation on steroids."

Reviving the moribund EU economy has taken on greater urgency in the face of geopolitical shocks, from US President Donald Trump's threats and tariffs upending the global trading to his push to seize Greenland from Denmark.

AFP said that Von der Leyen delivered her message before heading with EU leaders including France's Emmanuel Macron and Germany's Friedrich Merz to a gathering of industry executives in Antwerp, held on the eve of a summit on bolstering the bloc's economy.

A key issue identified by the EU is the fact that European companies face difficulties accessing capital to scale up, unlike their American counterparts.

To tackle this, Plan A would be to advance together as 27 states, von der Leyen said, but if they cannot reach agreement, the EU should consider "enhanced cooperation" between those countries that want to.

Von der Leyen said Europe should ramp up its competitiveness by "stepping up production" on the continent and "by expanding our network of reliable partners", pointing to the importance of signing trade agreements.

After recent deals with South American bloc Mercosur and India, she said more were on their way -- with Australia, Thailand, the Philippines and the United Arab Emirates.

One of the biggest -- and most debated -- proposals for boosting the EU's economy is to favor European firms over foreign rivals in "strategic" fields, which von der Leyen supports.

"In strategic sectors, European preference is a necessary instrument... that will contribute to strengthen Europe's own production base," she said -- while cautioning against a "one-size-fits-all" approach.

France has been spearheading the push, but some EU nations like Sweden are wary of veering into protectionism and warn Brussels against going too far.

The EU executive will also next month propose the 28th regime, also known as "EU Inc", a voluntary set of rules for businesses that would apply across the European Union and would not be linked to any particular country.

Brussels argues this would make it easier for companies to work across the EU, since the fragmented market is often blamed for why the economy is not better.

The commission is also engaged in a massive effort to cut red tape for firms, which complain EU rules make it harder to do business -- drawing accusations from critics that Brussels is watering down key legislation on climate in particular.