Saudi Arabian Military Industries

Saudi Arabian State-owned military manufacturing company

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SAMI

Logo since 2022

Trade name

| SAMI

Native name

| Arabic: شركة SAMI
Company type| Private
Industry| Defense & Security
Founded| 2017 (2017)
Headquarters|

Riyadh, Riyadh

Saudi Arabia

Key people

| Ahmed Al Khateeb (Chairman)
Walid Abukhaled (CEO)[1]
Parent| Public Investment Fund of Saudi Arabia
Divisions| Aerospace, Advanced Electronics, Defense Systems, Land, Sea
Subsidiaries| Advanced Electronics Company Limited
Website| www.sami.com.sa

SAMI is a state-owned defense company launched in May 2017 by Saudi Arabia’s Public Investment Fund (PIF).[2][3]

## Activities

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SAMI was established to provide defense products and services in Saudi Arabia and to reduce the country’s reliance on foreign purchases of defense products.[3]

The company operates across aerospace, electronics, defense systems, sea, and land systems.[4]

SAMI’s reported targets include the contribution of 14 billion riyals (US$3.7 billion) to the Saudi economy by 2030, 6 billion riyals (US$1.6 billion) investment in research and development and the creation of 40,000 jobs.[3]

## Partnerships

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In May 2017, SAMI signed Memoranda of Understanding (MoU) with defense contractors Boeing, Lockheed Martin, Raytheon and General Dynamics.[5]

In October 2017, SAMI signed a Memorandum of Understanding with Russia's Rosoboronexport to manufacture military equipment in Saudi Arabia.[6] The agreement provides for the transfer of technology for the local production of the S-400, the Kornet-EM system, the TOS-1A, the AGS-30 and the Kalashnikov AK-103.[7][8]

In January 2018, on the sidelines of the launch of the National Industrial Development and Logistics Program, SAMI inked the establishment of two new joint ventures with Thales and CMI Defence. The scope of the joint venture signed with Thales includes Short range air defense and counter-rockets radars, C2s, multi-mission missiles, fuses for guided bombs, and inter-communication radios.[9] The project aims to invest in the facilities and equipment in the local market, at a localization ratio of 70%, while around 2,000 direct and indirect jobs will be generated for Saudi youth. The second joint venture agreement, which is signed with CMI Defence, includes delivering multifunctional high-power turret systems for armored vehicles and all related services, providing in-country research and development and prototyping, design and systems engineering, supplier and material management, manufacturing, assembly and test, fielding and support, and upgrades, and integration of other OEM products and services. The project is expected to realize a localization rate of 60%, in addition to offering more than 700 direct and indirect jobs for the Saudi youth.[10]

In November 2018, SAMI and Navantia.[11] announced the launch of their joint venture, ‘SAMI Navantia Naval Industries,’ following the agreement signed by both parties to design and build 5 Avante 2200 corvettes with Combat Management System for the Ministry of Defense of Saudi Arabia. SAMI Navantia Naval Industries will focus on program management and naval combat system integration, system engineering and architecture, hardware design, and software development, testing and verification, prototyping, simulation, and modelling, in addition to the installation and integration of combat systems on the last two vessels of the Avante 2200 project, as well as the logistical support and training programs.[12]

In February 2019, SAMI and Naval Group, have entered into a Memorandum of Agreement to create a joint venture company in Saudi Arabia’s naval defense domain.[13]

On 4 July 2024, SAMI announced the signing of three MOUs with Turkish companies to localize defense industries in Saudi Arabia. The agreements included a partnership with Baykar to set up manufacturing capabilities and develop UAV systems. Another MOU was signed with Aselsan to advance defense electronics technologies. Moreover, SAMI signed a deal with Fergani Space to support emerging space technologies.[14]

## See also

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* Saudi Arabia portal

* Military Industries Corporation (Saudi Arabia)

## References

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1. ^ Haracic, Armin (2 November 2017). "Saudi military industries firm names former Airbus, Rheinmetall exec as CEO". Defense News. Retrieved 19 December 2017.
2. ^ "Saudi Arabia launches military industries company". Reuters. 18 May 2017. Retrieved 19 December 2017.
3. ^ a b c Carey, Glen; Shahine, Alaa (17 May 2017). "Saudi wealth fund starts defense company to meet military needs". Bloomberg. Retrieved 19 December 2017.
4. ^ "Saudi Arabia launches national state company for military industries". Al Arabiya. 18 May 2017. Retrieved 19 December 2017.
5. ^ Paul, Katie (31 October 2017). "Saudi state-owned defence company SAMI taps Rheinmetall executive as CEO". Reuters. Retrieved 19 December 2017.
6. ^ "Saudi Arabia signs agreement to manufacture Russian weapons locally". Al Arabiya. 5 October 2017. Retrieved 19 December 2017.
7. ^ "Saudi Arabia agrees to buy Russian S-400 air defense system: Arabiya TV". Reuters. 5 October 2017. Retrieved 19 December 2017.
8. ^ Binnie, Jeremy (6 October 2017). "Saudi Arabia and Russia sign S-400 MOU". Jane's Defence Industry. Retrieved 19 December 2017.
9. ^ "SAMI SIGNS TWO JOINT VENTURES AIMED AT LOCALIZING THE MILITARY INDUSTRIES IN THE KINGDOM". SAMI. 28 January 2018. Retrieved 9 April 2019.
10. ^ "Saudi Arabia announces new defence joint ventures". Jane's. 30 January 2019. Retrieved 9 April 2019.
11. ^ "Saudi Arabia and Spain's Navantia plan combat management systems venture". Reuters. 18 January 2018. Retrieved 9 April 2019.
12. ^ "SAUDI ARABIAN MILITARY INDUSTRIES (SAMI) AND NAVANTIA LAUNCH 'SAMI NAVANTIA NAVAL INDUSTRIES'". SAMI. 6 November 2018. Retrieved 9 April 2019.
13. ^ "SAMI AND NAVAL GROUP SIGN STRATEGIC AGREEMENT AT IDEX 2019 TO CREATE JV IN NAVAL DEFENSE". SAMI. 17 February 2019. Retrieved 9 April 2019.
14. ^ "Saudi Arabia's SAMI, Turkish firms forge defense partnerships". 4 July 2024. Archived from the original on 4 July 2024. Retrieved 6 July 2024.

## External links

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* Official website