SAMI (Saudi Arabian Military Industries)
Saudi Arabia's national defence and security manufacturing company, established to localize 50% of military spending by 2030.
Definition
SAMI (Saudi Arabian Military Industries) is a PIF-owned national defence company established in 2017 to develop and manufacture military equipment within Saudi Arabia, with the strategic goal of localizing 50 percent of the Kingdom’s military spending by 2030.
Overview
Saudi Arabia is one of the world’s largest defence spenders, historically importing the vast majority of its military equipment from the United States, United Kingdom, France, and other allied nations. SAMI was established to reverse this dependence by building a domestic defence manufacturing industry capable of producing and maintaining advanced military systems within the Kingdom.
SAMI operates across four core business divisions: aeronautics, land systems, weapons and missiles, and defence electronics. The company pursues its objectives through a combination of joint ventures with established international defence companies, technology transfer agreements, acquisitions, and organic capability development. Key partnerships have been established with major global defence contractors.
The company has made significant progress in establishing manufacturing facilities, training Saudi engineers and technicians, and securing contracts for the domestic production of military vehicles, electronic systems, ammunition, and maintenance services. SAMI also manages the Kingdom’s participation in international defence exhibitions and trade shows.
Key Facts
| Fact | Detail |
|---|---|
| Established | 2017 |
| Owner | Public Investment Fund |
| Divisions | Aeronautics, Land Systems, Weapons & Missiles, Defence Electronics |
| Localization Target | 50% of military spending by 2030 |
| Strategy | JVs, technology transfer, acquisition, organic development |
| Saudi Defence Spending | Among the top 5 globally |
Role in Vision 2030
SAMI is central to Vision 2030’s goal of localizing 50 percent of Saudi military expenditure — a target that, if achieved, would redirect tens of billions of dollars annually into the domestic economy. Defence industry localization creates high-skilled manufacturing employment, drives technology development, and strengthens the Kingdom’s strategic autonomy.
The defence sector is one of the most significant new industries being developed under Vision 2030, leveraging the Kingdom’s existing position as a major defence buyer to build a domestic industrial capability that can eventually serve both Saudi and export markets.