Page 26 - ADT MARCH 2021 Online Magazine

Arabian

Dreams

SAUDI ARABIA IS UNLOCKING [ COUNTRY FOCUS SAUDI ARABIA ]
MAJOR OPPORTUNITIES FOR
DEFENCE PRODUCERS OF ALL
SIZES

Jay Menon

As Saudi Arabia hosts the World Defense Show
– the newest fully-integrated entrant to the
international defence show circuit, the unprec-
edented response indicates how the kingdom
continues to stand as one of the most exciting
investment opportunities for global defence
and technology companies.
According to a recent industry report by the
U.S.-Saudi Business Council, the biggest
market for aircraft parts in the region is in Saudi
Arabia – and defence trade shows are serving
as a catalyst for this market.

Saudi Arabia has traditionally looked abroad expenditure – with experts predicting a subsequent boom in the
when sourcing military technologies. However, domestic defence sector over the next decade.
a substantial shift in the country’s agenda – Significant interest has been recorded from leading global manu-
and that of the wider Gulf region – is unlocking facturers, multinationals and SMEs across the defence industry,
major opportunities for defence producers of which considers Saudi Arabia – located at the crossroads of three
all sizes to do business in the largest economy continents – to be a critical market given its welcoming investment
in the Arab region. environment, ease of doing business and government support to
foreign investments.
Supported by its strategic partner, Saudi
Arabian Military Industries (SAMI), the Gulf Saudi Arabia plans to invest more than US$20 billion in its domestic
state has set the platform to serve as the global military industry through 2030 as part of its ambitious programmes
stage for interoperability across five domains: to boost local military spending, Governor of the General Authority
land, air, sea, space and security, through the for Military Industries (GAMI) Ahmed bin Abdulaziz Al-Ohali said.
World Defense Show.
"THE GOVERNMENT HAS PUT A PLAN THAT WE
According to EY, which considered factors WILL BE INVESTING IN EXCESS OF US$10 BILLION
ranging from daily visitor spend to imports and IN THE MILITARY INDUSTRY IN SAUDI ARABIA
exports, the World Defence Show will create
SR700 million of economic activity by 2030. OVER THE NEXT DECADE AND EQUAL AMOUNTS
ON RESEARCH AND DEVELOPMENT," he said.
In line with its Vision 2030, Saudi Arabia’s ambi-
tious plan to diversify its economy and move “We want to develop and manufacture more weapons and military
away from hydrocarbons, the Gulf state has systems locally, and allocate the budget to increase local produc-
committed to localising 50 per cent of military tion,” Abdulaziz Al-Ohali added.

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