عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia to Expand Private Sector Role in Military Industries

The Federation of Saudi Chambers has announced the formation of the first-of-its-kind national committee for military industries (Asharq Al-Awsat)
The Federation of Saudi Chambers has announced the formation of the first-of-its-kind national committee for military industries (Asharq Al-Awsat)
TT
TT

Saudi Arabia to Expand Private Sector Role in Military Industries

The Federation of Saudi Chambers has announced the formation of the first-of-its-kind national committee for military industries (Asharq Al-Awsat)
The Federation of Saudi Chambers has announced the formation of the first-of-its-kind national committee for military industries (Asharq Al-Awsat)

The Saudi private sector is stepping up its involvement in military industries to boost sector development and ensure long-term project success. The aim is to meet the Kingdom’s goal of localizing more than half of its military spending by 2030.

Recently, the Federation of Saudi Chambers has announced the formation of the first-of-its-kind national committee for military industries in the Kingdom. Salman Al-Shatri has been elected chairman of the committee while Zeyad Al-Mohaimeed is the vice chairman.

This is the first time that a committee concerned with the military industries sector has been formed under the umbrella of the private sector, represented by the Federation of Saudi Chambers, to work with relevant bodies such as the General Authority for Military Industries (GAMI), the Saudi Arabian Military Industries (SAMI) and other authorities.

Speaking to Asharq Al-Awsat, Al-Shatri said that the committee’s goal is to boost the number of companies in the sector and manage increasing investments effectively through collaboration.

Moreover, the committee aims to represent the private sector both domestically and internationally, and to work closely with GAMI to ensure programs serve the sector’s needs well.

Al-Shatri explained that the committee will directly communicate with relevant ministries to ensure local and sustainable projects in the sector. They’ll share feedback with authorities like the Ministry of Industry, Investment Ministry, and others to remove obstacles and utilize support programs.

He emphasized the committee’s focus on technology localization and research. They'll work closely with defense development and military industry authorities to develop needed technologies and ensure project resources.

Al-Shatri stressed that achieving Saudi Vision 2030 goals requires the right environment for research, development, and factory infrastructure. That's what the committee aims to address next.

The creation of the new committee follows recent directives from the Saudi Chambers of Commerce, aimed at modernizing the economy in line with the Kingdom’s vision.

Among the focus areas is the military industry, which aims to localize over 50% of its operations by 2030.

Government efforts have led to a significant increase in military industry capabilities, with localization rates rising from 4% to 13.6% by the end of 2022.

Saudi Arabia has issued permits for 265 companies in the military sector and announced over 74 investment opportunities to localize the supply chain.

In February, Riyadh hosted a global defense show with over 773 exhibitors from 75 countries and participation from defense ministers and senior officials.

Most Viewed

 
 
Business

Oil Eases as Traders Weigh US-Iran Conflict Risks

A horse grazes near an oil drilling rig in Kazakhstan (Reuters)
A horse grazes near an oil drilling rig in Kazakhstan (Reuters)
TT
TT

Oil Eases as Traders Weigh US-Iran Conflict Risks

A horse grazes near an oil drilling rig in Kazakhstan (Reuters)
A horse grazes near an oil drilling rig in Kazakhstan (Reuters)

Oil prices eased on Thursday as traders weighed escalating tensions between the United States and Iran and the risks to oil supplies moving through the Strait of Hormuz.

Brent crude futures were down 27 cents, or 0.32%, to $84.68 a barrel at 1011 GMT, while US West Texas Intermediate futures were down 11 cents, or 0.14%, to $79.49 a barrel. Both contracts remain close to one-month highs.

"The market is still reacting with a surprising degree of calmness," said Ole Hvalbye, market analyst at SEB Research, Reuters reported.

"It seems reasonable that prices could continue to climb towards $90-$95 and maybe even touch the $100 mark again and that is because the Strait of Hormuz is repeatedly being disrupted, creating uncertainty over oil flows from the Gulf."

The US struck Iran's coastal defences and missile sites on Wednesday after reimposing a naval blockade of its ports, while Tehran threatened to shut off more regional energy exports, saying it was engaged in an "existential war" with America.

The escalation comes after a fragile truce reached in June collapsed, reviving fears of a return to full-scale conflict and disrupting energy flows through the Strait of Hormuz, which handled about a fifth of daily global oil and LNG trade before the war began.

Fewer vessels passed through the strait on Wednesday, the first day after the US reimposed its naval blockade on Iran. Seven crossed on Wednesday, down from 13 the previous day.

"Markets could remain cautious as they assess immediate supply risks. So far, despite heightened military tensions, oil tankers continue to sail through the Strait of Hormuz, although in more limited numbers," said Wael Makarem, financial markets strategist lead at Exness.

Iran said on Thursday the strait was an inviolable "red line", warning that if US President Donald Trump carried out his threat to attack Iran's infrastructure, it would strike all infrastructure across the Gulf region.

Analysts say Iran has signalled it may use its Houthi allies in Yemen to shut the Bab el-Mandeb gateway to the Red Sea, opening a new front against Washington and putting a second of the world's most vital energy arteries at risk.

Oxford Economics said the likeliest scenario was that low, fluctuating levels of traffic through the strait spark intermittent oil price rallies that keep average prices above $80 per barrel for several quarters.

Elsewhere, Ukraine's Security Service said on Thursday that together with Ukraine's navy it has struck two Russian "shadow fleet" tankers with naval drones in the Black Sea.

Business

Crude Oil Loading Suspended at All Iraqi Terminals after Drone Incident

FILE PHOTO: Drone view of oil tanker HELGA berthed at one of Iraq's southern offshore oil terminals near Basra as it prepares to load crude oil, April 24, 2026. REUTERS/Mohammed Aty/File Photo
FILE PHOTO: Drone view of oil tanker HELGA berthed at one of Iraq's southern offshore oil terminals near Basra as it prepares to load crude oil, April 24, 2026. REUTERS/Mohammed Aty/File Photo
TT
TT

Crude Oil Loading Suspended at All Iraqi Terminals after Drone Incident

FILE PHOTO: Drone view of oil tanker HELGA berthed at one of Iraq's southern offshore oil terminals near Basra as it prepares to load crude oil, April 24, 2026. REUTERS/Mohammed Aty/File Photo
FILE PHOTO: Drone view of oil tanker HELGA berthed at one of Iraq's southern offshore oil terminals near Basra as it prepares to load crude oil, April 24, 2026. REUTERS/Mohammed Aty/File Photo

Crude oil loading was suspended at all Iraqi terminals on Thursday after a drone crashed into an oil tanker at the Basra terminal, although it did not cause damage ⁠or a fire, ⁠four Iraqi oil and security sources told Reuters.

Iraq's oil terminals are located in the ⁠south. It was not immediately clear who launched the drone.

The oil tanker was towed outside the port alongside another tanker that was anchored as a precautionary measure.

On Wednesday, a ⁠drone ⁠came down in Iraq's Faw port without causing any damage, the state news agency reported, without giving further details. Operations at the port were not affected.

Business

US Unveils New 25% Tariff on Certain Imports from Brazil

Tourists visit the Ponte de Saudade at Jose Bonifacio Beach on Paqueta Island, Rio de Janeiro state, Brazil, on July 11, 2026. (Photo by Pablo PORCIUNCULA / AFP)
Tourists visit the Ponte de Saudade at Jose Bonifacio Beach on Paqueta Island, Rio de Janeiro state, Brazil, on July 11, 2026. (Photo by Pablo PORCIUNCULA / AFP)
TT
TT

US Unveils New 25% Tariff on Certain Imports from Brazil

Tourists visit the Ponte de Saudade at Jose Bonifacio Beach on Paqueta Island, Rio de Janeiro state, Brazil, on July 11, 2026. (Photo by Pablo PORCIUNCULA / AFP)
Tourists visit the Ponte de Saudade at Jose Bonifacio Beach on Paqueta Island, Rio de Janeiro state, Brazil, on July 11, 2026. (Photo by Pablo PORCIUNCULA / AFP)

The United States announced on Wednesday a new tariff on various imports from Brazil, following a year-long investigation into the Latin American giant's trade and other policies.

The 25 percent tariff is set to take effect on July 22, as the Trump administration seeks to rebuild its tariff agenda following legal setbacks.

A range of products including beef, coffee and certain aircraft parts will be exempted, a senior US official told reporters.

The exclusions also cover certain goods that the United States does not produce.
Brazil condemned the tariffs on Thursday, promising that "reciprocal" measures would be taken.

"There is no justification for unilateral measures against our country," President Luiz Inacio Lula da Silva's office said in a statement on X.

US Trade Representative Jamieson Greer said Brazil's "unreasonable acts, policies, and practices" have hurt US commerce by unfairly benefitting Brazilian producers and "restricting access to one of the world's top export markets."

"We remain open to continuing negotiations with Brazil to bring about long-needed changes to the problems identified in this investigation," AFP quoted Greer as saying in a statement.
In earlier findings, the US investigation deemed that certain practices by Brazil were "unreasonable or discriminatory and burden or restrict US commerce."

Brazil has denied all allegations of unfair trade practices, calling them "unfounded" and "absurd."

US Secretary of State Marco Rubio said the Brazilian government had "not negotiated with the US in good faith."

"Lula has put his own ego ahead of making a deal for the welfare of the Brazilian people, and these tariffs are the price for that," he said in a post on X.

The new tariff comes as President Donald Trump's administration pushes to rebuild his economic agenda after the US Supreme Court in February struck down a swath of his global tariffs.

The Brazil tariffs were justified under Section 301 of the Trade Act, Greer's office said, and the Trump administration this year initiated other probes using the same authority.

US officials have already proposed new tariffs targeting dozens of trading partners for their alleged failures to act against forced labor.

In Brazil's case, a senior US official took aim Wednesday at what Washington deemed as adverse actions on digital trade, alongside "unfair" competition linked to state-owned electronic payments system PIX, among other issues.

The official rejected criticism that Section 301 probes were being used for political purposes.
The official said the door to negotiations remain open, although Washington wishes for its concerns -- including allegations Brazil gives preferential treatment to partners like Mexico and India -- to be resolved.

While the Trump administration said it does not expect retaliation following Wednesday's announcement, it warned that pushback could invite further US countermeasures.

At a public hearing held by Greer's office in Washington this month, Brazilian conservative presidential hopeful Flavio Bolsonaro urged the United States against imposing the new tariffs.

The eldest son of Brazil's former right-wing president Jair Bolsonaro argued that new duties would benefit Lula, his political rival.

The pair are top competitors in the October presidential election.

Last year, the Trump administration hit Brazil with sharp tariffs over the coup trial against Jair Bolsonaro, who is now serving a 27-year prison sentence.

Many of the duties were rolled back after talks between both sides.