Last updated: 11 September, 2024
Saudi SAMI: Ambitions, challenges, and leadership reshuffle
The Saudi Arabian Military Industries (SAMI), fully owned by the Public Investment Fund (PIF), is Saudi Arabia’s leading defense company. Established in 2017, SAMI plays a pivotal role in advancing Saudi Vision 2030 by focusing on localizing the Kingdom’s military industries and developing homegrown defense systems. As part of this vision, SAMI has established key partnerships with international defense companies through joint ventures (JVs), memoranda of understanding (MoUs), and other strategic agreements.
SAMI’s objectives align with Saudi Arabia’s broader goals under Vision 2030, aiming to significantly enhance the country’s local defense industry. By 2030, SAMI should have become one of the world’s top military-industrial firms. A key element of this strategy is to localize 50% of the Saudi government’s military spending, as the Kingdom remains one of the world’s top five military spenders. Additionally, SAMI is focused on rallying support from long-standing strategic partners to further develop Saudi Arabia’s military-industrial ecosystem.
While SAMI has successfully establishedpartnerships and JVswith major players in the global defense sector, many of these collaborations are still in the early stages, with some projects remaining symbolic. For SAMI to make a significant impact on the regional defense market and introduce competitive homegrown designs, further efforts are needed. Localization is a long-term strategy that requires sustained efforts and could take years to yield significant results.
Walid Abukhaledresigned from his position as SAMI CEOon 29/8/2024 after serving for four years. His resignation followed growing differences between him and Saudi Minister of Defense Prince Khaled Bin Salman, over key strategic defense projects. Appointed as SAMI’s Chairman in February 2024, Prince Khaled’s vision for the company diverged from Abukhaled’s approach. Saudi Crown Prince Mohammad Bin Salman (MBS) ultimately backed his brother Prince Khaled’s decisions, leading to Abukhaled’s resignation and the appointment of SAMI’s Vice Chairman, Omar Al-Madi, as interim CEO.