- Saudi Arabia launches BAE Systems Arabian Industries by merging BAE Systems Saudi Development & Training with Saudi Maintenance & Supply Chain Management Co.
- The move supports Vision 2030’s goal to localize over 50% of military spending by building local capabilities and infrastructure.
- Inaugurated by GAMI’s governor, the new entity will boost local content, attract global partners, and develop national talent.
Saudi Arabia is poised for progress in defense manufacturing with the initiation of BAE Systems Arabian Industries, a new organization designed to boost localization and enhance the Kingdom’s military industrial foundation.
The firm is the outcome of a merger between two significant entities in the defense sector - BAE Systems Saudi Development and Training, which prioritizes capability enhancement, and the Saudi Maintenance and Supply Chain Management Co., known for its supply chain and technical services, reported the Saudi Press Agency.
The action represents further progress in the Kingdom's plans to build its defense capability, as the localization of military spending increases from 4 percent in 2018 to an expected 19.35 percent in 2024. The Kingdom proposes to localize more than 50 percent by 2030, ingredient of Vision 2030's goal of having a defense sector that will serve the Kingdom independently.
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Ahmad Abdulaziz Al-Ohali, the governor of the General Authority for Military Industries, inaugurates BAE Systems Arabian Industries in an event on July 10, 2023, held at company's new headquarters in Riyadh, attended by a range of officials and executives from the defense sector.
In a post on his X handle, the governor said, “This will enhance local content and open up broad horizons for national and international companies to contribute to building a solid and sustainable military-industrial system, to enhance local content in terms of human and technical cadres.”
The merger was finalized nearly four months ago to consolidate operational strengths and leverage over three decades of experience in defense training, capability development, and logistics.
“He pointed out that the integration of national and global expertise within this unified entity reflects the confidence of major companies in the attractive investment environment provided by the authority in cooperation with its partners in both the public and private sectors,” the SPA report stated.
Al-Ohali emphasized that this program would play a role in sharing knowledge and developing national competence, helping the Kingdom to locally source over 500 of military spending by 2030.
He repeated the authority's support of programs that support local content and provide opportunities for local and international companies to contribute to developing a strong, sustainable military-industrial sector.