SAMI CEO to Asharq Al-Awsat: Advancing Toward Integrated, Sovereign Saudi Defense Industry

SAMI took part in the World Defense Show, which recently concluded in the capital Riyadh. (Asharq Al-Awsat)
SAMI took part in the World Defense Show, which recently concluded in the capital Riyadh. (Asharq Al-Awsat)
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SAMI CEO to Asharq Al-Awsat: Advancing Toward Integrated, Sovereign Saudi Defense Industry

SAMI took part in the World Defense Show, which recently concluded in the capital Riyadh. (Asharq Al-Awsat)
SAMI took part in the World Defense Show, which recently concluded in the capital Riyadh. (Asharq Al-Awsat)

The Saudi Arabian Military Industries (SAMI) is accelerating its push to deliver its 2030 strategy, aiming to anchor a sustainable national defense base built on deeper localization, advanced technology transfer and development, and an integrated industrial ecosystem spanning Saudi Arabia’s defense and security sectors.

SAMI Chief Executive Officer Eng. Thamer AlMuhid said the next phase marks a decisive shift in SAMI’s trajectory, from building capabilities to full industrial enablement, to strengthen self-sufficiency, readiness, and defense sovereignty in line with Saudi Vision 2030.

Speaking to Asharq Al-Awsat, AlMuhid said the strategy translates into developing and supporting defense industries inside the Kingdom, boosting self-reliance and playing a central role in meeting the Vision 2030 goal of localizing 50% of defense spending. That target, he said, will directly boost the armed forces’ readiness and operational capacity.

On the sidelines of the recently concluded World Defense Show in Riyadh, he described the coming stage as a qualitative leap from foundation-building to broad-based defense industrial expansion, reinforcing the Kingdom’s long-term defense readiness and sovereignty.

Sources of strength

AlMuhid said SAMI’s strength lies in its structure as an integrated national entity operating under a distinct business model that brings together specialized Saudi companies, qualified national talent, flexible domestic supply chains and strategic partnerships with major global firms.

That integration enables the group to convert national objectives into tangible industrial output and defense products manufactured in the Kingdom, supporting national security and the long-term sustainability of the military industries sector.

World Defense Show participation

AlMuhid said SAMI’s presence at the World Defense Show underscores the maturity of its defense ecosystem, operating across specialized and complementary sectors including aerospace, land and naval systems, unmanned systems, advanced electronics, munitions and professional services.

The ecosystem covers the full value chain, from design and development to manufacturing, integration, support and sustainment.

The message from Riyadh to partners and international markets is clear, he said, adding that Saudi Arabia now has a sovereign industrial base, trusted national capabilities and expanding supply chains operating to global standards.

SAMI has become a strategic partner capable of delivering sustainable defense solutions that enhance national security and open new avenues for industrial cooperation with leading global defense companies, he stressed.

Local content

SAMI’s Local Content Program (Rukn) is designed to organize and expand the role of national suppliers within the defense industries ecosystem, he went on to say.

The program goes beyond raising localization ratios, focusing on building sustainable domestic supply chains that meet defense industry standards for quality, reliability and continuity, AlMuhid explained.

It seeks to empower local suppliers, particularly small and medium-sized enterprises, through qualification, knowledge transfer and direct integration into SAMI projects and subsidiaries, he added.

The initiative also deepens domestic supply chains by localizing components, services and industrial processes inside the Kingdom and integrating suppliers across the full value cycle, raising local content and improving sector efficiency, he continued.

AlMuhid said SAMI acts as a key enabler and driver of local content, expanding its base through projects and partnerships within an integrated national framework to lift localization rates across the sector, not just within the company.

Industrial enablement

AlMuhid said SAMI has moved beyond technology transfer to full industrial enablement by building an integrated defense ecosystem led by specialized national companies, each with a defined sectoral role under a model that combines operational independence with group-wide integration.

Each subsidiary operates with flexibility and autonomy within a centralized governance framework and overarching strategy set by SAMI, ensuring alignment across the group.

He said SAMI Land Systems serves as a national arm in the design and manufacture of combat vehicles, artillery systems and armored platforms, as well as advanced protection solutions and integrated maintenance and logistics services.

SAMI Aerospace provides maintenance, repair and overhaul services for aerospace systems, focusing on support for the Royal Saudi Air Force, and has achieved 75% local content, revealed AlMuhid. It also signed an agreement with SKYFive Arabia to install air-to-ground (A2G) connectivity systems on flynas aircraft, becoming the exclusive regional partner in this field.

SAMI Advanced Electronics designs and develops command and control systems, cybersecurity, electronic warfare and sensor technologies within an integrated framework to protect digital infrastructure.

SAMI Autonomous Systems specializes in autonomous systems and unmanned aerial, naval and land platforms.

In munitions, SAMI Munitions leads an industrial complex project that has surpassed 60% localization and created more than 1,200 jobs. It has also signed a contract with the Ministry of National Guard to sustain systems and weapons in support of higher local content.

AlMuhid said SAMI’s international partnerships are structured to ensure technology transfer, localization of operations and national capacity building, backed by clear governance and performance indicators to secure a shift from assembly to full manufacturing.

Largest integrated facility

AlMuhid said the SAMI Industrial Complex for Land Systems, operated in line with Fourth Industrial Revolution requirements, is the largest integrated facility of its kind in the Middle East and North Africa.

The 82,000-square-meter plant sits within a one million-square-meter industrial zone and relies on automation, artificial intelligence, the Internet of Things and industrial robotics to raise production efficiency and enhance product quality to global standards.

The complex provides more than 1,000 specialized jobs for Saudis. Among its flagship outputs is the HEET project, which fully designs and manufactures armored vehicles inside the Kingdom, reflecting local control of the industrial value chain.

Challenges

AlMuhid said complex defense technologies, tightly linked global supply chains and the need to accelerate the development of specialized talent remain key challenges.

SAMI has approached them as opportunities to reshape the defense industrial model by localizing integration and operations, developing local suppliers as qualified industrial partners and building national talent within projects to ensure sustained expertise.

Human capital is central to that effort, he said. By the end of 2025, SAMI employed more than 7,000 people, 73% of them Saudi nationals, with women accounting for 12%.

The group delivered more than 400,000 training hours to over 3,000 employees and hired more than 2,200 new staff under a structured pathway spanning early recruitment, specialized qualification, hands-on factory training and enabling Saudis to work in advanced industrial environments and transfer knowledge.

Industrial enablement at SAMI is no longer a future ambition but an operational reality, AlMuhid said, strengthening the Kingdom’s defense sovereignty and boosting the competitiveness of its products regionally and internationally in line with Saudi Vision 2030.



Saudi Arabia, Türkiye Strengthen Supply Chains with Land Corridor Bypassing Maritime Chokepoints

Saudi and Turkish transport ministers meet to strengthen cooperation (X)
Saudi and Turkish transport ministers meet to strengthen cooperation (X)
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Saudi Arabia, Türkiye Strengthen Supply Chains with Land Corridor Bypassing Maritime Chokepoints

Saudi and Turkish transport ministers meet to strengthen cooperation (X)
Saudi and Turkish transport ministers meet to strengthen cooperation (X)

At a time when the near-total closure of the Strait of Hormuz and the escalating U.S.-Iran war have put global supply chains under complex geopolitical strain since late February, a strategic land corridor is emerging from the heart of the maritime blockade, promising to redraw the map of international transport and trade.

Between Riyadh and Ankara, a surge in logistics activity is moving beyond conventional bilateral cooperation. It is shaping a secure, sustainable overland alternative for energy, goods and regional food supplies bound for global markets.

The official signing on Tuesday by Saudi Minister of Transport and Logistics Services Saleh Al-Jasser and his Turkish counterpart, Abdulkadir Uraloğlu, of comprehensive memorandums of understanding on railways, logistics operations and technology laid the operational foundation for that shift.

The agreements go beyond easing the immediate movement of goods. They aim to build a cross-border connectivity system that can serve as an operational line of defense against the current maritime crises.

According to the Turkish minister, the rail link rests on infrastructure that already exists in both Saudi Arabia and Türkiye. He said the Saudi side had completed its section up to the Jordanian border, while Türkiye’s rail network extends into Syrian territory. Iraq could later join the project, he added.

How the network connects

Technically and operationally, the corridor is taking shape as a connected rail network built around geography. The line starts in Istanbul, linking Türkiye’s advanced network to the Arab interior. It crosses Türkiye’s southern border into Syria through Aleppo, then runs south to Damascus, the project’s central anchor.

From the Syrian capital, the route crosses into Jordan, passes through Amman and reaches the Saudi border at the Haditha crossing. That strategic point is where the Syrian and Turkish networks meet the advanced infrastructure of Saudi Arabia Railways (SAR).

Inside Saudi Arabia, the route takes on major development weight. Its main and branch lines pass through major projects, such as the Port of Neom, which is seen as a future logistics corridor linking Red Sea ports. It then connects Makkah and Medina before integrating with the unified Gulf railway network.

That Gulf extension opens the way for the line’s long-term goal of reaching Oman and the Arabian Sea, giving it the profile of a comprehensive intercontinental land corridor that bypasses traditional maritime choke points.

Turning the kingdom into a transit hub

Logistics expert Nashmi Al-Harbi told Asharq Al-Awsat that the signed memorandums “translate in practical terms the vision of creating a land corridor that directly links the Gulf to Europe through Jordan, Syria and Türkiye.”

Al-Harbi said Saudi Arabia’s two maritime outlets, on the Red Sea and the Arabian Gulf, combined with Türkiye’s position as Europe’s natural land gateway, “turn Saudi Arabia from a logistics endpoint into a genuine strategic transit hub connecting three continents.”

“The added value for supply chain resilience lies in drawing on the lessons of Red Sea disruptions, which proved that diversifying corridors has become an urgent necessity, not an economic luxury,” he said.

He said the project would create alternative land routes that strengthen transport resilience between Asia and Europe, away from the impact of maritime chokepoint closures or swings in marine insurance costs. Required investment in the line is estimated at about $5.5 billion, he added.

Al-Harbi said the project “fully aligns with the National Transport and Logistics Strategy, which aims to consolidate the kingdom’s position as a global hub.”

It also supports regional connectivity and the localization of the railway industry, he said, building on a strong base after the kingdom ranked fifth globally in container handling speed.

He said the project’s practical impact, including the exchange of best practices in freight, last-mile services and joint logistics centers, would cut cargo transit times between the Gulf and Europe from more than 30 days on traditional sea routes to less than two weeks by land once completed.

Al-Jasser and Uraloğlu shake hands after signing the two memorandums of understanding (X)

Alternatives as shipping costs soar

Logistics expert Hassan Al-Hilal told Asharq Al-Awsat the Saudi-Turkish memorandums represent “a strategic step that strengthens the kingdom’s role as a major center for re-exporting and distributing goods.”

He said the move comes at a critical moment for global trade. “Geopolitical disruptions in vital maritime corridors in recent months have caused record jumps in shipping and marine insurance costs, exceeding 300% compared with pre-crisis levels, as ships have been forced to take longer and riskier alternative routes,” he said.

Al-Hilal said the Saudi-Turkish logistics corridor gives suppliers and exporters “multimodal transport options, combining maritime shipping through Saudi ports with land and rail transport extending through Türkiye toward European and Central Asian markets.”

“This operational diversity directly helps reduce costs linked to storage and rehandling, and limits reliance on a single maritime route,” he said. “It ensures the stable flow of goods and products with high competitive efficiency, maximizing the benefits of the kingdom’s large investments in its port infrastructure.”

Key differences

Comparing the route with the India-Middle East-Europe Economic Corridor, or IMEC, Al-Harbi identified three key differences that he said gave the Saudi-Turkish route the edge.

“The first is the geographic route, which passes through Syria and Jordan to Türkiye, rather than IMEC’s passage through Israel. The second is the nature of implementation, as the current project is based on signed memorandums with a clear technical road map, compared with IMEC, which has been suspended since 2023. The third difference lies in the geopolitical dimensions. Türkiye, which had previously criticized the corridor for bypassing its territory, is returning through this new route strongly to the heart of the strategic Eurasian connectivity map,” he said.

Al-Hilal added what he called a decisive operational difference. IMEC, he said, is “a long-term strategic project that requires massive structural investment,” while current Saudi-Turkish cooperation is based on “maximizing the use of infrastructure that already exists” and on immediate operational links between two advanced logistics networks.

That makes it capable of delivering tangible results in the foreseeable term and at a much faster pace to meet current market needs, he said.

Joseph Salem, partner and head of travel, transport and hospitality at Arthur D. Little Middle East, said: “Reviving the Hejaz Railway is one of the most prominent infrastructure projects in the region’s modern history. The two memorandums of understanding signed in Riyadh between Saudi Arabia and Türkiye, one covering logistics services and the other railway technology, bring the project one step closer to implementation.”

He said an operational line would give the Gulf a direct overland trade corridor to Europe, reducing reliance on sensitive maritime passages at a time when supply chain resilience has become a growing strategic priority.

“The most important challenge remains implementation, whether in terms of financing, the stability of transit routes, or turning feasibility studies expected to be completed by the end of the year into actual investments,” Salem said.

“The importance of these two memorandums stems from the fact that they address the essential pillars of any cross-border railway project, including the standardization of technical specifications, signaling standards and regulatory alignment,” he added.

“If these elements are in place, the Hejaz Railway could regain its position within the next decade as one of the most important strategic land corridors linking Europe and the Gulf.”

Reviving a century-old legacy

The emerging land artery is not new. It is an ambitious revival, with a modern investment mindset, of a legacy dating back more than a century. It is an extension of the Hejaz Railway, which began operations in 1908 and linked Istanbul with Medina and Mecca through Syria and Jordan.

At the time, Damascus was a main anchor point, with lines branching north and south, as well as vital extensions to Lebanon, especially Beirut, and the historically Palestinian port of Haifa. The railway formed an integrated regional network before it broke apart during World War I.

From Neom to the border

The agreements follow advanced operational steps by the parties to the route. Ankara announced the activation of a trilateral memorandum of understanding with Syria and Jordan to modernize networks and connect the rail line between Türkiye and Aleppo, before integrating the Aleppo-Damascus-Jordan line.

Saudi Transport Minister Saleh Al-Jasser said the Saudi rail network already extends to the Jordanian border via the Haditha crossing, giving the project significant implementation flexibility. Joint technical studies will be completed by the end of this year to strengthen a sustainable land transport system, he said.

According to technical information, the new route will pass through the Port of Neom, linking the kingdom’s giga-projects to the heart of Europe through Türkiye.

International financing and operational pressure

In a related move that strengthens the corridor’s readiness, the Asian Infrastructure Investment Bank, or AIIB, approved a 645.83 million euro loan, equivalent to about $750 million, as a first package to help finance a new 127-km green railway line in Türkiye.

The strategic project, known as the Northern Istanbul Railway Crossing Project, aims to bypass Istanbul’s congested urban area and provide a high-capacity land link for freight and passengers across the Istanbul Strait. It would help ease bottlenecks in international supply chains and connect Türkiye’s two largest airports to the rail network.

The Turkish project’s total strategic cost is estimated at about $8.27 billion, with participation from the World Bank and other international financing institutions to raise the share of Eurasian rail transport.

In the final analysis, the joint rail push lays the groundwork for an unprecedented shift in regional shipping by removing the time and geographic obstacles imposed by maritime disruption. Cutting goods delivery times to less than two weeks would redirect investment toward this emerging land artery, at the expense of traditional routes and suspended alternatives.


FII Institute Names Princess Maha bint Mishari Al Saud as CEO

Princess Maha bint Mishari bin Abdulaziz Al Saud (Asharq Al-Awsat file photo)
Princess Maha bint Mishari bin Abdulaziz Al Saud (Asharq Al-Awsat file photo)
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FII Institute Names Princess Maha bint Mishari Al Saud as CEO

Princess Maha bint Mishari bin Abdulaziz Al Saud (Asharq Al-Awsat file photo)
Princess Maha bint Mishari bin Abdulaziz Al Saud (Asharq Al-Awsat file photo)

The FII institute, run by a global nonprofit foundation of ⁠Saudi sovereign wealth ⁠fund PIF, has named ⁠Princess Maha bint Mishari bin Abdulaziz Al Saud as its CEO, according to ⁠the ⁠institute's website.

“With more than 25 years of leadership experience spanning healthcare, academia, strategic partnerships, and international engagement, Dr. Al Saud has built a distinguished career centered on creating impact through collaboration and institution-building. She has worked across the public, private, and nonprofit sectors to advance initiatives that strengthen organizations, expand opportunity, and improve lives,” the website said.

Before joining FII Institute, she served as Vice President of External Relations and Advancement at Alfaisal University.

She has helped expand strategic partnerships, deepen international engagement, and elevate the university’s global standing in education, research, and innovation.

“A recognized advocate for leadership, healthcare transformation, education, and human development, Dr. Al Saud has represented Saudi Arabia at major international forums, including the G20, and the fourth Eurasian Women’s Forum,” FII Institute said.

“Dr. Al Saud holds an MBBS degree and is certified by the American Board of Internal Medicine, having completed her residency training at George Washington University. Her executive credentials include the Senior Executive Leadership Program at Harvard Business School, IMD Business School and she holds the prestigious, peer-reviewed distinction of Master of the American College of Physicians (MACP),” it added.


Egypt Clears Arrears to Oil and Gas Companies

People walk past a shop selling football jerseys in Khan el-Khalily Bazar in Cairo on June 9, 2026. (AFP)
People walk past a shop selling football jerseys in Khan el-Khalily Bazar in Cairo on June 9, 2026. (AFP)
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Egypt Clears Arrears to Oil and Gas Companies

People walk past a shop selling football jerseys in Khan el-Khalily Bazar in Cairo on June 9, 2026. (AFP)
People walk past a shop selling football jerseys in Khan el-Khalily Bazar in Cairo on June 9, 2026. (AFP)

Egypt's Minister of Petroleum Karim Badawi said on Wednesday that the full settlement of arrears owed to oil and gas partners marked a turning point for the sector.

Badawi ‌said payment ‌of the arrears, "restores ‌investor confidence ⁠and paves the ⁠way for increased upstream activity and accelerated project development".

Egypt had accumulated about $6.1 billion in arrears to foreign oil companies by June ⁠30, 2024 due to ‌a ‌prolonged foreign currency shortage that delayed payments ‌and weighed on investment and ‌gas output. The shortage has since eased, though some companies have said that arrears kept ‌accumulating.

The minister said clearing the debt removed ⁠a ⁠key obstacle to new investment inflows and would support increased exploration, drilling and field development activity, including projects in the Mediterranean where development typically requires significant capital spending and years of work before production begins.