The Saudi governor of the sector’s General Authority Ahmad Al-Ohali said that Saudi Arabia has spent 5.1 billion riyals ($1.4 billion) in incentives to boost its local military industry over the last two years.
Ahmad Al-Ohali said the incentives included 3.3 billion riyals which was directed to research and development in the military industries in 2021 and 2022. The remaining 1.8 billion riyals was distributed to companies, including Saudi Arabian Military Industries (SAMI), Ohali said.
For his part, SAMI’s chief executive officer Walid Abukhaled said the company will focus on unmanned systems, radars and cybersecurity in coming years.
“The kingdom had the third-biggest defence budget in the world, now it is the ninth thanks to spending rationalisation,” Abukhaled said.
Both were speaking at a forum in Riyadh in the wake of the kingdom’s 2023 budget announcements.
Developing local industries, including in the military sector, is part of a bigger plan launched by the kingdom’s de facto ruler Crown Prince Mohammed bin Salman (MBS) to diversify the Saudi economy away from oil.
Saudi Arms Imports to Reach 259 Billion Riyals in 2023
The kingdom hopes that building up a local military industry would help cut its massive defence spending — mostly in arms imports — which is forecast to reach 259 billion riyals in 2023, up from an estimated 245 billion riyals in 2022.
The government had initially budgeted 171 billion riyals for 2022, down from 202 billion in 2021 as the war in Yemen had started to wind down.
Saudi Growing Arms Deals
Saudi Arabia’s military spending stood at an estimated 245 billion riyals in 2022 placing it third in the world. Since becoming in power, MBS has spent a third of the Kingdom’s budget in weapon purchase, despite the high unemployment rate.
Saudi Arabia has spent a fortune buying arms from America to prosecute a war that has killed almost a quarter of a million people — the world’s worst humanitarian catastrophe in our lifetime. However, no real achievement was reported, as Saudi Arabia failed to stop Houthi attacks on the Kingdom.
World’s Largest Importer of Arms
Within the last 10 years, Saudi Arabia has turned itself into the world’s largest buyer of weapons on the world market. Ten years ago it was buying 90% less than they are today.
The US and UK are the kingdom’s top suppliers. With purchases of astonishingly expensive weapons like helicopters, tanks, and guided missiles, nearly all of its foreign-made weapons (by value) come from these two countries.
The ramp up has been significant since their March 2015 intervention in the Yemen civil war. 17% of arms acquired by the country since the 1952 have come in the last three years, according to data from the Stockholm International Peace Research Institute (SIPRI).
The 2016 and 2017 shipments from the United States include: 142 helicopters, eight anti-submarine aircraft, 153 tanks, and over 20,000 guided missiles. These weapons provide air support for the war in Yemen. A conflict that has been fought primarily from above. Statistics from the Yemen Data Project show hundreds of air raids a month in Yemen. An air raid may comprise of several dozen air strikes.
