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It’s a big week for news from the defense industry as the World Defence Show continues in Riyadh through Thursday.
The number of licenses to companies in the defense industry has doubled in the past two years, Industry and Mineral Resources Bandar Al Khorayef told Asharq Business in an interview yesterday (watch, runtime: 9:12). “This reflects an increased momentum due to a growing interest by local or foreign investors to venture into the sector,” he said.
In context: The Kingdom launched in 2019 a licensing program for defense industries as part of its bid to diversify away from oil. The General Authority for Military Industries now issues licenses to firms to manufacture defense systems, military equipment, firearms, ammunition, and other industry standards. The sector is open to investment from both domestic and foreign investors.
Al Khorayef says the industry faces four challenges as it looks to grow, including the need for a wider industrial base to ensure feeder industries are in place. The Kingdom has accelerated efforts to establish a number of basic industries to make the core sector more attractive to investors, he said.
It’s about manufacturing, not assembly: “Another challenge is the transfer of technologies, especially that the Kingdom’s strategy is not focused on an assembly-based industry. We want to be a main player in the [defense tech] industry,” he said.
REMEMBER- The Kingdom has a target of localizing over 50% of its military equipment spending by 2030.
ALSO YESTERDAY at the World Defense Show (or on the sidelines)
- Saudi Arabia is contributing SAR 100 mn to the Islamic Military Counter Terrorism Coalition, Defense Minister Prince Khalid bin Salman said.
- Prince Khalid also met yesterday with UK Secretary of State for Defense Grant Shapps, state news agency SPA reports.
MORNING DISTRACTION- The Ministry of Interior posted a video of a police car showcase featuring the all-electric Lucid police cruiser on social media platform X.
