Are Saudi arms deals at risk?
Saudi Arabian Military Industries Company (SAMI) was showcasing its offerings at Air Force Base Waterkloof in Pretoria, South Africa
Add bookmarkAfter King Soloman came into power in 2015, the KSA has embarked on a number of high profile projects with the goal of reaching technological and economic parity with the West. Indeed, the Arab nation diversifying its economy away from oil, and one sector that has received a staggering amount of investment in recent years is defence.
Key threats facing Saudi Arabia
The KSA faces a significant amount of security threats, resulting in increased defence spending. While current defence spending has yielded uncertain results, main threats come in the form of extremist challenges and Iran - the chief regional challenger to Saudi Arabia.
Where is Saudi Arabia buying arms from?
US
Currently, the US is engaged in an arms deal with the KSA worth $110 billion
Lockheed Martin
Lockheed Martin has an arms deal with Saudi Arabia worth $15 billion for its Thaad air defence system. Amongst the growing demands for defence entities to cease providing arms to Saudi Arabia after the alleged killing of journalist Jamal Khashoggi.
The sale of the Terminal High-Altitude Area Defense systems has been under negotiation for an entire year after its approval from Congres - as a letter of offer and acceptance has not yet been signed.
This THAAD deal will be the largest the defence company has ever done.
Europe
South Africa
As part of its efforts to develop its capabilities and reach, the Saudi Arabian Military Industries Company (SAMI) was showcasing its offerings at Air Force Base Waterkloof in Pretoria, South Africa, in September. The company aims to enhance its presence in the African continent and explore new opportunities in this growing market.
Launched in May 2017, SAMI is a state-owned military industries company established by Saudi Arabia’s Public Investment Fund (PIF) to increase local content and build a sustainable and thriving military industries sector in the Kingdom. With a strategic framework in place, SAMI aims to contribute around 14 billion SAR ($3.7 bn) directly to Saudi Arabia’s GDP, increase the value of national exports by about 5 bn SAR ($1.3 bn), invest over 6 bn SAR ($1.6 bn) for research and development, and create over 40,000 direct jobs locally by 2030.
Dr. Andreas Schwer, CEO of SAMI, expressed his delight that SAMI is showcasing its growing portfolio of military products and services in four key areas – Aeronautics, Land Systems, Weapons and Missiles, and Defence Electronics. This contributes to the company's efforts to localise 50 per cent of Saudi Arabia’s military spending, which is one of the most important targets of Vision 2030.
“The Saudi Military Industries Company’s [presence] signifies the Kingdom's intention to open cooperation and establish partnerships on the African Continent,” said Dr. Schwer.
“The Saudi government is keen on establishing a new phase of strategic relationships with South Africa, and looks forward to new investment opportunities and to building joint ventures with South African companies. These will be to our mutual benefit, and in particular of benefit to the Saudi market, which is characterised by its promising opportunities and sustainable growth.”
During the exhibition, Dr. Schwer met with Hon. Nosiviwe Mapisa-Nqakula, South Africa’s Minister of Defence and Military Veterans, to discuss bilateral relations between Saudi Arabia and South Africa in the fields of military and security manufacturing, and to explore ways to achieve the countries’ shared objectives.
