Riyadh, May 18: Since the launch of Saudi vision2030, Saudi Arabia has been taking major initiatives to make the country a global model of excellence on all fronts. Under this venture, Saudi state-owned Public Investment Fund (PIF) opened a state company to produce ammunition, weapons, and missiles. The company Saudi Arabian Military Industries aims for sustainable improvement in the defense sector.
A local news media Al Arabiya reported that the plan wants to reduce country’s dependence on hydrocarbons. The country wants to develop its economy in diverse sectors. The country heavily relies on oil for its income. To stop that reliance, this plan is developed by the state.
Al Arabiya quoted PIF SAMI will “initially manufacture products and provide services across four business units: Air Systems, Land Systems, Weapons and Missiles (including ammunitions); and Defense Electronics,” Along with these, the company will focus on “repair fixed-wing aircraft” and “manufacture and repair unmanned air vehicles.”
This venture will also help to create the job in the country. The company is expected to produce more than 40,000 jobs - mostly in the tech and engineering sectors – and more than 30,000 indirect opportunities. Centered on the company, hundreds of small and medium companies will emerge creating more job opportunities.
The Kingdom spends a high amount on security and defense and comes to the top five lists. But only 2% military procurement is domestic. So the kingdom wants to localize the procurement. SAMI will contribute in achieving the goals set out in Vision 2030 and expected to contribute more than $3.7 billion to the GDP.