Riyadh – 28 December 2020: Saudi Arabian Military Industries (SAMI), a wholly owned subsidiary of the Public Investment Fund (PIF), announced that it has acquired Advanced Electronics Company (AEC) as part of the largest military industries deal ever concluded in the Kingdom of Saudi Arabia. The purchase is expected to complete in the first quarter of 2021 following regulatory approvals. As a result, AEC will become a 100% Saudi-owned company.
The acquisition was announced during a ceremony organized by SAMI in the presence of the members of SAMI’s and AEC’s Board of Directors, and senior officials from the Ministry of Defense, General Authority for Military Industries (GAMI), PIF, Saudi Arabian Airlines (SAUDIA), BAE Systems Saudi Arabia, and other stakeholders.
Commenting on the deal, H.E. Ahmed Al-Khateeb, Chairman of SAMI, said: “This deal strengthens SAMI’s presence in the strategically important defense industries market and supports its plans to transfer and localize the military industries. The acquisition will also enhance AEC’s opportunities to expand and compete in its field.”
H.E. Al-Khateeb affirmed the support of H.R.H. the Minister of Defense for the transfer and localization of military industries as a key part of the Kingdom’s Vision 2030. “This achievement also supports PIF’s efforts through SAMI in localizing cutting-edge technology and knowledge, as well as building strategic economic partnerships.”
H.E. Al-Khateeb added, “Considered the ‘crown jewel’ of Saudi Arabia’s military industries and a proud accomplishment for its citizens, AEC will bring about transformative change in the Kingdom’s defense sector by enhancing the industry’s competencies and advancing innovation. With state-of-the-art products, innovative technologies, several decades of experience, and the collective efforts of both SAMI and AEC, the acquisition will shape the future of the domestic defense ecosystem and make long-lasting contributions to the national economy for the upcoming years, through skills development, employment generation, and exports.”
Eng. Walid Abukhaled, CEO of SAMI, thanked the Public Investment Fund (PIF) for its unlimited support and efforts that contributed to the success of the acquisition. He asserted that the deal would serve to enhance the local defense sector, and support and realize the localization rates required by the local content of the military industries.
AEC is considered a major facilitator of Saudi Arabia’s Vision 2030 thanks to its 32-year experience in the military industries market and the leading role it plays in Defense and Aerospace and the development of security local systems. In addition to facilitating the transfer of technology and enhancing local production, the acquisition will enable SAMI to consolidate its defense electronics sector.
SAMI’s acquisition of AEC will support its strategic plan, which aims to expand its business and enter the progressive Defense Electronics sector. The acquisition will also contribute to the implementation of SAMI’s plans to transfer technologies and localize domestic military industries, as well as to strengthen the Saudi defense ecosystem, in line with the Kingdom’s Vision 2030 programs.
Abdulaziz Al-Duailej, CEO of AEC, said: “SAMI’s acquisition of AEC stock will help us reach our goals and strategic plans for the next five years. It also places us under the umbrella of the Public Investment Fund (PIF), the KSA’s sovereign wealth fund, which constitutes a milestone for the company and fills us with pride as directors and employees.”
Al-Duailej added: “This achievement was realized thanks to the commitment, experience and concerted efforts of all the employees in both companies. The deal will provide AEC with the opportunity to further strengthen its position in the military industries market and explore new horizons in advanced technologies in the Kingdom and beyond, as well as support the continuous development of the capacities of national cadres.”
Since 1988, AEC has played a pioneering role in the fields of modern electronics, manufacturing, system integration, and repair and maintenance services, thereby becoming a major regional player renowned for innovation. Around 85% of the company’s employees are Saudi nationals, including more than 300 of its male and female engineers. AEC also has over 100 strategic partners and has successfully completed more than 1,000 projects. Furthermore, the company has witnessed steady growth in sales in recent years. In 2019, net sales reached SAR 2.32 billion – up from SAR 2.07 billion in 2018 and SAR 1.92 billion in 2017.
Since its inception in mid-2017 by the Public Investment Fund (PIF), SAMI has been leading Saudi Arabia’s efforts in developing self-sufficient defense capabilities through its fast-growing portfolio of military products and services, spanning across its business divisions, namely Aeronautics, Land Systems, Weapons and Missiles, Defense Electronics, and Emerging Technologies.
About Saudi Arabian Military Industries (SAMI):
Launched in May 2017, Saudi Arabian Military Industries (SAMI) is a state-owned military industries company working under the directives outlined in the Saudi Vision 2030. Aiming to be among the top 25 military industries companies in the world by 2030, SAMI is expected to play a key role in localizing 50% of the Kingdom’s total government military spending.
SAMI is combining the latest technologies and the best national talents to develop military products and services at par with international standards across its business divisions, namely Aeronautics, Land Systems, Weapons and Missiles, Defense Electronics, and Emerging Technologies. The company is also focused on increasing exports and bringing foreign investment to the Kingdom’s military industries sector.
For media inquiries or interviews, please contact:
Meshel B. Alsaleh
Senior PR & International Partnerships Manager
Saudi Arabian Military Industries (SAMI)
About Advanced Electronics Company (AEC):
Established in 1998, the Advanced Electronics Company (AEC) is a leading Saudi company in the field of the electronics, technology, and manufacturing industry. It is a key player in realizing the Kingdom’s Vision 2030.
AEC is distinguished by its high-quality projects and efficient and timely execution, and it is committed to the highest quality standards. The company adopts a customer-centric approach and has occupied a leading role for around three decades through four main sectors: defence and aerospace, Information and Communication Technology, energy, and security.
AEC designs, develops, manufactures, maintains, and repairs advanced systems, equipment and devices in the industrial, military, and electronic fields, such as smart water and electricity meters, security systems for critical infrastructure, industrial control systems, Typhoon weapons systems, jamming and targeting systems for F-15 airplanes, electronic modules for F-16 airplanes, ground equipment, Hawk 165 training and simulating systems, weapons systems for Tornado airplanes, and many others.
The company employs more than 2,100 employees, 80 percent of whom are Saudis, while the AEC team includes more than 300 highly skilled and certified Saudi engineers working in various departments. It is an essential enabler to realizing the Kingdom’s Vision 2030 by localizing 50 percent of military industries, implementing a digital transformation, localizing and developing the energy sector, and developing human resources.