As part of its strategic efforts to expand its operations in Saudi Arabia, Saudi Arabian Military Industries (SAMI), a wholly-owned subsidiary of the Public Investment Fund (PIF), signed three separate financing agreements with three Saudi banks for a total amount of nearly SAR 7 billion.
SAMI claimed that its the first and unique deal of its kind in Saudi Arabia’s defense industries sector and will contribute to the company’s future projects related to defense industries localization, infrastructure development, acquisitions, and working capital financing.
Commenting on the agreements, Eng. Walid Abukhaled, CEO of SAMI, stated, “We are pleased to cooperate with the Saudi banking sector in this massive deal, which is the first of its kind in the defense industries sector of Saudi Arabia. These agreements will support our principal goals and future projects and will strengthen and broaden the scope of our operations. They also seek to employ local talent in the defense industries sector, thus accomplishing the goals of Saudi Arabia’s Vision 2030 of localizing over 50% of defense spending. This deal will also support PIF’s efforts through SAMI in localizing cutting-edge technology and knowledge, as well as building strategic economic partnerships.”
Mater Alenazi, CFO of SAMI, added, “SAMI’s ability to acquire substantial financing affirms the confidence of the banking sector in the strength of our operations. The company’s targeted growth and the economic feasibility of our future projects confirm our eligibility for this financing. These agreements will also benefit our society by creating new employment opportunities and supporting the GDP growth, as well as localizing Saudi Arabia’s defense industries. We will continue to build strategic partnerships with leading local and international financial institutions in order to finance many of our projects in the near future, which aim to strengthen the defense industries sector in Saudi Arabia in line with Vision 2030.”
Since its inception in 2017, Saudi Arabian Military Industries (SAMI) has led the way in developing and supporting the defense industries sector in Saudi Arabia. The company plays a key role in accomplishing sustainability in the defense industries sector and promoting its self-sufficiency by ensuring rapid growth of defense products and services through its five main business divisions, namely SAMI Aerospace, SAMI Land, SAME Sea, SAMI Advanced Electronics, and SAMI Defense Systems.
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Also, view SAMI Article 1 and SAMI Article 2