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Saudi Arabian Military Industries And France’s Naval Sign Deal To Build Warships In The Kingdom

A joint venture to strengthen the Royal Saudi Naval Forces is to be set up between a state-owned defense firm and a French company specializing in naval defense.

The Saudi Arabian Military Industries Company (SAMI) and Naval Group signed an agreement on the sidelines of the International Defence Exhibition and Conference in Abu Dhabi.

The agreement sets out the framework for establishing the joint venture, which will strengthen the Kingdom’s efforts to localize essential industrial skills and capabilities.

SAMI aims to be one of the world’s top 25 military industry companies by 2030, and Crown Prince Mohammed bin Salman wants to localize 50 percent of Saudi military spending by 2030 also.

SAMI CEO Dr. Andreas Schwer said: “Our joint venture agreement with Naval Group laid the foundation of a strategic partnership that will reinforce SAMI’s commitment to helping Saudi Arabia develop self-sufficient defense capabilities. The collaboration offers us an excellent opportunity to leverage Naval Group’s strong track record of helping its partners develop sovereign defense capabilities to create an integrated military industries ecosystem in the Kingdom.”

“Through design, construction, and maintenance activities, the joint venture will contribute significantly to further enhancing the capabilities and readiness of our Royal Saudi Naval Forces.”

Last year, SAMI signed agreements with Boeing and Spanish state-owned shipbuilder Navantia.

Vision 2030 is highly reliant on the contribution of SAMI to the gross domestic product (GDP). According to the vision, the plan is to nationalize 50 percent of the military spending, and increase the contribution of the private sector to the GDP by 40-65 percent.
Public Investment Fund of Saudi Arabia expects SAMI to contribute almost $240 million to the national GDP by 2020, and to create 5,000 new jobs.

SAMI is set to become one of the top manufacturers globally, combining the latest technologies and best expertise to produce military equipment according to international standards and aid the development of the Saudi army.

The company’s strategy is based on implementing best practices from extensive studies in the industry, and collaborating with national and international partners.

SAMI designed their areas of operation to increase profitability and nationalization of the industry.

Source : Arab News

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