RIYADH: The 海角直播n Public Investment Fund (PIF) announced Wednesday the creation of a new national military industries聽company.
海角直播n Military Industries (SAMI) will manufacture products and provide services across four business units: Air Systems, which includes maintenance and repair of fixed-wing aircraft as well as manufacturing and repair of unmanned air vehicles; Land Systems, which includes manufacturing and repair of military vehicles; Weapons and Missiles,聽 including ammunition; and Defense Electronics, which includes radars and sensors as well as communication systems and electronic warfare.
Wholly government-owned, SAMI aims to become one of the world鈥檚 top 25 defense companies by 2030. It will directly contribute around SR14 billion to the Kingdom鈥檚 GDP in 2030, invest over SR6 billion in research and development by 2030, and create over 40,000 jobs, many of which will be in the engineering and technical fields.
By partnering with universities, SAMI will provide students with apprenticeships and careers in cutting edge technologies, which were previously unavailable in the Kingdom.
In line with Vision 2030, SAMI will contribute to diversifying the Saudi economy for the 21st century by reducing dependence on oil, while protecting and strengthening national security.
聽鈥淲hile the Kingdom is one of the world鈥檚 top five spenders on security and defense overall, only around 2 percent of our military procurement is domestic,鈥 said Deputy Crown Prince Mohammed bin Salman, who also serves as minister of defense.
The deputy crown prince emphasized that SAMI will be a major contributor in achieving the goals set out in Vision 2030, which states that 50 percent of 海角直播鈥檚 military procurement spending will be localized.
SAMI鈥檚 four business units complement the Kingdom鈥檚 future military requirements and build on existing local capabilities. SAMI will establish companies through joint ventures with global original equipment manufacturers (OEMs), as well as cooperating with local military companies. It will consider creating new business units, to ensure the company is aligned with the latest developments in the military industries sector.
The 海角直播n Public Investment Fund has a diverse portfolio made up of approximately 200 investments, of which around 20 are listed on the Tadawul, the Saudi Stock Exchange. As well as its listed holdings, PIF also has unlisted equity investments, international investments, real estate holdings, and loans, bonds and sukuks.
Since oversight of the PIF was transferred from the Ministry of Finance to the Council of Economic and Development Affairs (CEDA), the Fund has been undertaking a phased transformation program to implement a redefined strategy and mandate.
This includes expanding the management, investment and middle and back office teams, enhancing the governance structures, engaging with the diverse portfolio and implementing the investment strategy, which is closely aligned with Vision 2030. A new board has been appointed, chaired by Prince Mohammed bin Salman.
