The Saudi Arabian Military Industries (SAMI) is a national defense company wholly owned by the Public Investment Fund (PIF). Established in 2017, SAMI serves as a strategic partner in Saudi Arabia’s defense and security sector, aligning with the goals of Saudi Vision 2030. The company aims to localize military manufacturing, advance indigenous defense capabilities, and position Saudi Arabia among the world’s leading defense powers.
Headquartered in Riyadh, SAMI operates with a board of directors chaired by the Minister of Defense and functions as the cornerstone of the Kingdom’s strategy to achieve self-sufficiency in defense industries.
Sector Units of SAMI
SAMI delivers comprehensive defense solutions through five major sector units:
- Aviation and Space: Focuses on fixed-wing aircraft and helicopter modernization, maintenance, repair, and overhaul (MRO). Activities include manufacturing aircraft structures, engines, electronics, and unmanned aerial systems, such as surveillance drones and armed UAVs.
- Defense Systems: Develops high-quality munitions, missile defense systems for air, land, and sea, anti-drone technologies, missile launchers, and remote weapon systems.
- Advanced Electronics: Specializes in defense electronics, radar and electro-optical systems, communications, electronic warfare, and C4I systems. SAMI also develops naval combat systems and mission electronics for armored vehicles.
- Land Systems: Engages in research and manufacturing of combat vehicles, artillery systems, unmanned ground vehicles, tactical trucks, and remote weapon stations, with an emphasis on local production and integrated logistics support.
- Marine Systems: Builds Saudi Arabia’s maritime defense capabilities through systems like Hazem, unmanned surface and underwater vehicles, and mine countermeasure systems.
Strategic Goals of SAMI
SAMI’s long-term vision is to rank among the world’s top 25 defense companies by 2030. To achieve this, it focuses on:
- Localizing 50% of Saudi defense spending.
- Contributing SAR14 billion to the Kingdom’s GDP.
- Increasing defense exports to SAR5 billion.
- Creating 70,000 direct and indirect jobs.
- Investing SAR6 billion in research and development.
While Saudi Arabia is one of the top five global defense spenders, its defense expenditure accounts for less than 2% of GDP. SAMI seeks to change this dynamic by fostering domestic production and innovation.
Subsidiaries and Partnerships
SAMI has expanded rapidly through acquisitions, subsidiaries, and joint ventures:
- SAMI CMI Defence Systems and SAMI L3HARRIS Technologies (joint ventures).
- SAMI Navantia Naval Industries – focused on naval defense solutions.
- Acquisition of Advanced Electronics Company (AEC) in 2019, making it fully Saudi-owned.
- Majority stake acquisition of Aircraft Accessories and Components Company (AACC).
- Partnership with Lockheed Martin (2021) to strengthen local defense capabilities.
Achievements and Growth
SAMI has recorded remarkable milestones in a short span:
- Sarawat Project (2021): Built five Avante 2200 corvettes for the Royal Saudi Naval Forces.
- Revenue Growth: Achieved a 2,407% revenue increase, reaching SAR2.6 billion in 2021.
- Employment: Expanded its workforce from 341 employees in 2020 to 2,500 in 2022, a 633% growth.
- Global Ranking: Recognized by Defense News as one of the Top 100 Defense Companies for two consecutive years, rising 19 positions in 2023 with revenues of USD900 million.
Conclusion
The Saudi Arabian Military Industries (SAMI) represents a pillar of Saudi Vision 2030, advancing defense self-reliance and technological innovation. Through its diversified sector units, strategic global partnerships, and ambitious localization goals, SAMI is transforming Saudi Arabia into a global defense industry leader while contributing to economic diversification, job creation, and national security.
