Prime Highlights
- SAMI inks technology transfer contracts with Turkish defence companies to increase local military production.
- Upgraded SAMI Land Industrial Complex to start producing armoured vehicles by 2025 end.
Key Fact
- Saudi Arabia goal of 50% localization of defence expenditure by 2030 through strategic partnerships.
- Factory to feature Industry 4.0 standards, manufacture AI-based land defence systems.
Key Background
Saudi Arabian Military Industries (SAMI), whose public shareholder is the Public Investment Fund, contracted high-profile defense contracts with three of Turkey’s highest defense manufacturers—Nurol Makina, FNSS, and Aselsan. They are in line with land systems technology transfer for Saudi Arabia to be able to have an autonomous defense production community under Vision 2030 objectives.
The two agreements were inked on the sidelines of IDEF 2025 Defense Exhibition in Istanbul in the presence of senior officials of the two countries. The alliance reaffirms Saudi-Turkish industrial collaboration as it facilitates the localization of cutting-edge defense capabilities, in particular, land mobility and combat systems.
A key element of this program is the SAMI Land Industrial Complex (SLIC), which will go into production in the fourth quarter of 2025. The complex will be a center of next-generation land systems with the capability to produce 4×4, 6×6, and 8×8 armored vehicles, as well as next-generation turret systems. It will be made using Industry 4.0 technologies such as robotics, artificial intelligence, and the integration of Internet of Things (IoT) in a bid to be very efficient and competitive in the global market.
Similarly, Saudi Arabia’s General Authority for Military Industries (GAMI) also helped Al-Esnad Factory obtain other MoUs with Turkish firms such as MDH Makel, AKSA Group, and Ayyazilim. All these MoUs are a part of localizing the production of critical components and enhancing system integration capability within the Kingdom.
This strategic step confirms the aspiration of Saudi Arabia to transform its defense industry to achieve long-term financial viability and minimize foreign military imports. Such alliances with Turkish companies not only export cutting-edge technology but also promote human capital development, making the Kingdom an emerging defense manufacturing giant even more.
