Saudi Arabia announces 'aggressive' plan to spend $20bn on domestic arms
Saudi Arabia has announced a “very aggressive” plan to spend more than 20 billion dollars on its domestic military industry over the next decade.
“The government has put a plan that we will be investing in excess of 10 billion dollars in the military industry in Saudi Arabia over the next decade and equal amounts on research and development,” Governor of the General Authority for Military Industries (GAMI) Ahmed bin Abdulaziz Al-Ohali said on Saturday.
Al-Ohali, who was speaking at the hybrid International Defense Exhibition and Conference 2021 (IDEX) in Abu Dhabi said in the next ten years Saudi Arabia planned to invest 50 percent of its military budget in domestic industries.
By 2030, he said, Riyadh also planned to increase its military research and development budget, doubling it from 0.2 percent of armaments expenditure to 0.4 percent.
The new Saudi plan was announced at the kick-start of the conference on The Prosperity and Development of Artificial Intelligence and Advanced Technology and the Protection in the Era of the 4IR.
Al-Ohali described the scheme as “very ambitious, very aggressive.”
He said 114 licenses had been issued for 70 companies in Saudi Arabia, adding that about a fifth of them were “foreign joint ventures, or, full ownership by the foreign companies.”
He said GAMI had established an incentive program where foreign investors can own 100 percent of their investment in Saudi Arabia and be eligible for all the incentives, financial and otherwise, to develop the industry.
Al-Ohali had previously announced Riyadh's program to license firms to boost its domestic military industries sector.
