RIYADH: Saudi Arabia has spent SR5.1 billion ($1.4 billion) in incentives to boost its local military industry over the last two years, Governor of the General Authority for Military Industries Ahmad Al-Ohali revealed during the second day of the 2023 Budget Forum.
Al-Ohali said the incentives included SR3.3 billion which was directed to research and development in the military industries in 2021 and 2022.
The remaining SR1.8 billion was distributed to companies, including Saudi Arabian Military Industries, Al-Ohali said at the Ministry of Finance organized event which reviews the performance of the government for the year 2022.
SAMI's CEO Walid Abukhaled, who also spoke during the forum, said the company will focus on unmanned systems, radars and cybersecurity in coming years.
Moreover, Saudi Arabia’s military industries sector is set to contribute SR95 billion to the Kingdom’s economy by 2030, Al-Ohali disclosed.
In addition to this, the localization of military industries will account for creating more job opportunities in the Kingdom, the governor stressed.
Abukhaled agreed that the military industries and their localization are an integral part of Vision 2030. One of the most important indicators of the success of military industries is "independence", he said.
Vice Minister of Industry and Mineral Resources Osama Al-Zamil disclosed that the Kingdom’s National Strategy for Industry will kick off 2023 on strong grounds as it seeks to triple industrial gross domestic product to potentially hit SR895.
The National Strategy for Industry is also aiming to raise the value of industrial exports by 100 percent to reach SR557 billion, Al-Zamil revealed.
Furthermore, the strategy is eyeing to bring the value of additional investments in the sector to an estimated SR1.3 trillion, he added.
The “Made in Saudi Arabia” program gave a strong identity to Saudi industry at all levels and the industrial strategy has created 800 investment opportunities worth up to SR1 trillion, the vice minister explained.
Al-Zamil further explained that the private sector contributed to stimulating investment in infrastructure development and financial enablers, especially for the industrial sector.
Saudi Industrial Development Fund CEO Ibrahim AlMojel, who also spoke at the forum, argued that the fund became the main financial enabler of the transformation of the Kingdom into a leading industrial power, and has achieved more in six years than in the previous 35.
The second day of the forum comprised the holding of five dialogue sessions revolving around the national industry and its role in facing risks, business facilitation and its role in the economy, the impact of tourism and culture on economic development, and the impact of the budget on empowering women.
This comes as Saudi Arabia’s bumper budget surplus received thumbs up from the Kingdom’s governors as they term it a reflection of “the strength and durability” of the economy that will go a long way to improve the lives of its citizens.
Saudi Arabia on Dec. 7 announced a larger-than-expected budget surplus of SR102 billion for 2022 — SR12 billion higher than previously forecast.
The Kingdom also upwardly revised the growth of its GDP to 8.5 percent for 2022, compared with the 7.5 percent estimated in December 2021 and the 8 percent forecast in the pre-Budget statement published at the end of September.
