(MENAFN- Saudi Press Agency)
Riyadh, Sha'ban 21, 1438, May 17, 2017, SPA -- The Saudi Arabian Public Investment Fund ('PIF') has today announced the creation of a
new national military industries company.
Saudi Arabian 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 &
Missiles - 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's top 25 defense
companies by 2030. It will directly contribute around SAR 14 billion to the Kingdom's
GDP in 2030, invest over SAR 6 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.
Prince Mohammad bin Salman bin Abdulaziz Al Saud, Deputy Crown Prince,
Minister of Defense and Chairman of the Public Investment Fund said: 'While the
Kingdom is one of the world's top five spenders on security and defense overall, only
around two percent of our military procurement is domestic'.
He emphasized that SAMI will be a major contributor in achieving the
goals set out in Vision 2030, which states that fifty percent of Saudi Arabia's military
procurement spending will be localized.
SAMI's four business units closely complement the Kingdom's 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. SAMI will consider creating new business
units, to ensure the company is aligned with the latest developments in the military
industries sector.
--SPA
About the Public Investment Fund
The Saudi Arabian 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 Public Investment Fund 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 the Deputy Crown Prince Mohammad
bin Salman Al Saud.
PIF is building a world-class domestic and international investment portfolio, driving
forward diversification of sources of income for the state, through achieving attractive
long-term financial returns from its investments at home and abroad.
--SPA
00:00 LOCAL TIME 21:00 GMT
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