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Eased Procedures Encourage Private Sector Investment in Saudi Military Industries

Saudi Arabia's vision aims to localize at least 50% of the country's spending on military procurement by 2030 (Asharq Al-Awsat)
Saudi Arabia's vision aims to localize at least 50% of the country's spending on military procurement by 2030 (Asharq Al-Awsat)
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Eased Procedures Encourage Private Sector Investment in Saudi Military Industries

Saudi Arabia's vision aims to localize at least 50% of the country's spending on military procurement by 2030 (Asharq Al-Awsat)
Saudi Arabia's vision aims to localize at least 50% of the country's spending on military procurement by 2030 (Asharq Al-Awsat)

The Saudi government offers a host of comparative advantages for military sector investors. From easy procedures to visas and licenses, Saudi authorities are keen on facilitating investment flow into the Kingdom’s defense industry.

Saudi Arabia’s developed customs services and digital technologies are factors for attracting investment as well.

A recent Riyadh Chamber of Commerce report recommended establishing industry-specific specializations in schools and universities across the Kingdom.

It also stressed the need for building partnerships with developed countries.

Raising more awareness of Vision 2030 programs for the Saudi military industry, creating military industry clusters, and establishing research centers specialized in developing technologies were also among the Chamber’s suggestions.

Encouraging and attracting researchers and scientists to upgrade technology was also proposed in the report.

Saudi Arabia has implemented a long-term strategy for some essential military industries. Moreover, it facilitates license issuing via e-platforms.

Saudi companies and institutions have developed solutions to overcome difficulties facing their investment journey in the Kingdom’s military sector.

Integration and transfer of expertise between the private and military sectors are among those solutions.

The companies also proposed that the state provide more financial support and facilities and select the most efficient companies to invest in the military sector.

According to the presented solutions, the Kingdom must invest in scientific research, assign a single legislative body, facilitate the issuance of necessary licenses, and streamline procedures.

Establishing industrial cities for the defense sector was also recommended. Local and international knowledge and technology must be used to support those cities.

Training national cadres in military investment is also vital.

Abdullah Al-Khorayef, Chairman of the Industrial Committee at the Chamber, confirmed that the Kingdom’s military industries provide an array of promising opportunities for the private sector.

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Egypt's Net Foreign Assets Retreat in April after March Jump

A general view of the new headquarters of Central Bank of Egypt, at the New Administrative Capital (NAC) east of Cairo, Egypt December 8, 2023. REUTERS/Amr Abdallah Dalsh/File Photo
A general view of the new headquarters of Central Bank of Egypt, at the New Administrative Capital (NAC) east of Cairo, Egypt December 8, 2023. REUTERS/Amr Abdallah Dalsh/File Photo
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Egypt's Net Foreign Assets Retreat in April after March Jump

A general view of the new headquarters of Central Bank of Egypt, at the New Administrative Capital (NAC) east of Cairo, Egypt December 8, 2023. REUTERS/Amr Abdallah Dalsh/File Photo
A general view of the new headquarters of Central Bank of Egypt, at the New Administrative Capital (NAC) east of Cairo, Egypt December 8, 2023. REUTERS/Amr Abdallah Dalsh/File Photo

Egypt's net foreign assets (NFAs) fell by $1.5 billion in April, central bank data showed on Wednesday, retreating from March, when the approval of the fourth review of the country's IMF program sparked a jump.

NFAs slid to the equivalent of $13.54 billion, from $15.08 billion at the end of March, according to Reuters calculations based on official central bank currency exchange rates.

In March, NFAs jumped by $4.9 billion after the International Monetary Fund approved the disbursement to Egypt of $1.2 billion after completing its review of the country's $8 billion economic reform program, Reuters reported.

The IMF also approved a request for a $1.3 billion arrangement under the IMF's resilience and sustainability facility.

The approvals led to an inflow of foreign investment in Egyptian pound treasury bills, bankers said.

Egypt had been using foreign assets, which include assets held by both the central bank and commercial banks, to help prop up its currency since as long ago as September 2021. Net foreign assets turned negative in February 2022 and only returned to positive territory in May last year.

Foreign assets increased in April at both the central bank and commercial banks, while foreign liabilities fell at both as well.