Saudi Arabia’s social transformation is one of the fastest in history, says SAMI CEO

Walid Abukhaled, CEO of Saudi Arabian Military Industries, speaking at the World Defense Show. AN
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RIYADH: Saudi Arabia’s social transformation is one of the “fastest in history” facilitated by the government, according to a senior executive.

Speaking at the World Defense Show 2024, Walid Abukhaled, CEO of Saudi Arabian Military Industries, emphasized that there are significant changes occurring that may not be immediately apparent.

“What is happening, you’ve seen the economic changes, you’ve seen the diversity that’s happening in the Kingdom and all the transformation. But what you don’t see are the social changes,” Abukhaled said.

The CEO added: “This transformation is probably one of the fastest by the government in history.”

He also stated that the fast pace of change initially caused confusion within the defense industry as it was so smooth and unexpected.

The transformation has, however, brought “tremendous” opportunities to the industry, which now sees the true potential of the changes and its implications over time.

“Now we have a clearer understanding, when there is something that requires localization, we have an authority that we can go to and there’s a clear industrial conservation plan that we have to work through to get the program to be signed and executed,” Abukhaled stated.

Since he is always questioned about exporting goods and services, the CEO noted that there are ample opportunities within the domestic market in the Kingdom.

“Why should I focus on export when I have really well opportunity just in front of me — the Kingdom market is one of the largest globally,” Abukhaled said.

He added: “Vision 2030 made it so clear, you have to localize the defense spending up to 50 percent by 2030.”

Abukhaled noted that SAMI aims to be one of the top 25 defense companies in the world by 2030.

“We have a clear strategy of how we get there, and I can assure you again, we will never get there without the support of everybody involved in the defense and security ecosystem,” he said.

Furthermore, Khaled Al-Biyari, assistant minister of Defense Executive Affairs at the Ministry of Defense underscored that, as Vision 2030 gained momentum, one aspect that remained relatively unexplored was the Kingdom’s strides in modernizing its military and security capabilities.

Through the Ministry of Defense’s Transformation Program, ambitious goals were set to safeguard the Kingdom’s interests in the face of evolving threats.

“The program is aimed, in large part, at ensuring that the Kingdom’s interests and security are protected and includes strengthening and modernizing defense capabilities as well as localizing over 50 percent of military expenditure by 2030,” Al-Biyari explained.

Following its debut in 2022, the World Defense Show has returned to Riyadh, where more than 750 exhibitors are representing 77 nations, highlighting the industry’s readiness for the future.