UNIPATH STAFF
To implement Vision 2030 put forward by His Royal Highness Crown Prince Mohammed bin Salman, Saudi Arabia has sought to localize military procurements and reduce reliance on foreign partners to equip its forces.
The country envisions sourcing half its armaments from domestic companies. The United Arab Emirates has also focused on locally sourcing its weaponry. In the case of Saudi Arabia, that goal could prove to be ambitious: As of 2018 the Saudi had procured only 2% of its military equipment from domestic sources.
The Saudi General Authority for Military Industries (GAMI) and the state-owned holding company, Saudi Arabian Military Industries (SAMI), will receive government subsidies for their roles in expanding the non-oil Saudi economy. Homegrown armament production would create thousands of jobs, contribute to economic diversification, and enhance the high-tech sector in the kingdom.
SAMI was established in May 2017 and signed agreements with foreign partners to acquire alternative technologies. Charged with building a sustainable national defense sector, GAMI was established several months later.
In November 2019, GAMI announced plans to increase financial support for scientific research to 4% of the Saudi military budget. As a result, short-range ballistic missiles and laser-guided bombs are being developed at the King Abdulaziz City for Science and Technology in Riyadh.
In collaboration with GAMI, the Saudi company Intra Defense Technologies plans to start manufacturing affordably priced unmanned aerial systems in 2021 with an expected investment of more than $200 million.
The kingdom has recently trimmed defense spending to make up for reductions in government income tied to Saudi Arabia’s decision to reduce reliance on oil exports. According to the Ministry of Finance, the government allocated $48.5 billion for defense in 2020, a 4.7 percent cut from the 2019 defense budget.
Sources: Al-Ayyam newspaper, Center for Strategic & International Studies, Intra Defense Technologies