Key Points

  • Set up in May 2017, Saudi Arabian Military Industries (“SAMI”) is aiming to become one of the top 25 military industry companies in the world. The Saudi Arabian government spends billions of dollars on defence related services each year, making this a potential game changer from a commercial contractor’s perspective.
  • This is particularly relevant for those contractors that are closest to Saudi in terms of military trade; many, if not most of these, are high-profile entities from either France, the United Kingdom, and / or the United States – meaning that there is an added significance to the overall impact this may have on bilateral relations.
  • Above all, the move places Crown Prince Mohammed bin Salman as the final ‘sign off’ on defence related contracts, in a move that further consolidates his position at the heart of Saudi’s political, military, and economic apparatus.