{"id":60961,"date":"2021-02-25T15:13:20","date_gmt":"2021-02-25T15:13:20","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2021\/02\/25\/top-sami-executive-talks-joint-ventures-acquisitions-and-the-biden-administration\/"},"modified":"2026-08-08T00:31:42","modified_gmt":"2026-08-08T00:31:42","slug":"top-sami-executive-talks-joint-ventures-acquisitions-and-the-biden-administration","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/digital-show-dailies\/idex\/2021\/02\/25\/top-sami-executive-talks-joint-ventures-acquisitions-and-the-biden-administration\/","title":{"rendered":"Top SAMI executive talks joint ventures, acquisitions and the Biden administration"},"content":{"rendered":"
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The CEO of Saudi Arabian Military Industries, Walid Abukhaled, spoke with Defense News at IDEX.<\/figcaption><\/figure>\n\n\n

ABU DHABI, United Arab Emirates \u2014 Despite the Biden administration\u2019s recent freeze<\/a> on two munition sales to Saudi Arabia as part of a new Yemen policy, one of the kingdom\u2019s defense industry conglomerates has gone ahead with joint ventures with American firms Lockheed Martin and L3Harris Technologies.<\/p>\n\n\n\n

The moves by Saudi Arabian Military Industries are part of the kingdom\u2019s economic plan, Vision 2030, which aims boost the domestic industry<\/a> and increase technology transfer into local sectors. And it is Walid Abukhaled, the CEO of SAMI, who is charged with accomplishing these goals.<\/p>\n\n\n\n

Abukhaled became acting CEO in April 2020, taking over from Andreas Schwer, who had served in the top spot since January 2018. He took on the full position four months later. Defense News spoke with Abukhaled at this year\u2019s International Defence Exhibition and Conference<\/a> held Feb. 21-25 in Abu Dhabi, where the executive discussed business acquisitions and joint ventures, the ongoing coronavirus pandemic, and how he differs from his predecessor.<\/p>\n\n\n\n

This interview has been edited for length and clarity.<\/p>\n\n\n\n

What are your plans for SAMI, and how do they differ from <\/b>those of Andreas Schwer<\/b><\/a>?<\/b><\/p>\n\n\n\n

Whether it\u2019s me, my predecessor or a future leader, there is a clear strategy set for SAMI with clear mandates. SAMI is the national defense champion, and there has never been a national defense champion before. In the past there was never a regulator for the defense industry; now we have the General Authority for Military Industries. At the board level there is a clear strategy on what SAMI should achieve and buy. We have a clear mandate by 2030 that we should achieve. My objective is to ensure SAMI becomes one of the top 25 defense companies in the world by 2030. The challenge put to our leadership is figuring out how we can expedite that and achieve it before 2030.<\/p>\n\n\n\n

The localization of the defense industry plays a huge role in Vision 2030, and we believe the defense industry plays a huge role in the diversification of the economy. That\u2019s where SAMI comes in \u2014 as the enabler for technology transfer and localization activities in anything related to the defense industry. We are establishing joint ventures with the top 10 companies in the world, with the companies who are committed, are keen to partner and grow with us to support their and our objectives. And at the same time we have acquisition plans to integrate the industry in the kingdom of Saudi Arabia. We continue down that path with original equipment manufacturer partnerships, and the acquisitions by SAMI will help deliver our mandate.<\/p>\n\n\n\n

SAMI acquired the local firm Advanced Electronics Company in mid-2019. What will your next acquisition be?<\/b><\/p>\n\n\n\n

We have a weapons and missiles division, an aeronautic division, [as well as units for] land systems and defense electronics, and soon we will be getting into naval systems because that\u2019s so important to support the ecosystem, and having [a maintenance, repair and overhaul] MRO capability for engines will be a tremendous help.<\/p>\n\n\n\n

We have already acquired a company called Aircraft Accessories and Components. They deal with all mechanical components. It manufactures landing gears, and their facility is one of the best. It has a presence in Africa, the Middle East, some parts of Europe and in Asia.<\/p>\n\n\n\n

We will continue with acquisitions to support the MRO capability we\u2019re building in the kingdom. We\u2019re keen to get into rotorcraft capabilities, and we\u2019re looking for UAVs. We are in discussion with the Middle East Propulsion Company to explore opportunities. If the investment doesn\u2019t happen, we will [take a] green-field [investment approach].<\/p>\n\n\n\n

How has the spread of COVID-19 affected SAMI\u2019S business model, production lines and facilities? How do you think the defense market will look in the aftermath of the pandemic?<\/b><\/p>\n\n\n\n

2020 globally has been a bad year. But for SAMI, the opposite \u2014 it has been a great one. We managed to win a couple of strategic contracts for armed forces\u2019 missile defense. We moved to a new headquarters in 2020, built a very healthy pipeline of business opportunities, and we concluded the year by finalizing the acquisition of AEC, which we call \u201cthe jewel of the defense companies of Saudi Arabia.\u201d<\/p>\n\n\n\n

So we\u2019ve set a very strong foundation for growth. In 2021, I\u2019m positive about continuing to win and execute some of the programs we\u2019ve won.<\/p>\n\n\n\t