Saudi Arabia to Create Domestic Military Industry in Economic Overhaul
Deputy Crown Prince Mohammed bin Salman of Saudi Arabia has announced plans to reform the country's military spending by creating a domestic military industry. This move is part of the broader Saudi Vision 2030, aimed at diversifying the economy away from oil dependency. The prince criticized the current state of military spending and efficiency, comparing it unfavorably to more practical military bases in the U.S. A government-owned holding company will be established and listed on the Saudi Tadawul to facilitate this transition. The goal is to manufacture up to 50 percent of military needs within Saudi Arabia, creating jobs and retaining more resources domestically. The changes, including the appointment of SABIC's CEO to the Saudi Military Industry Corporation, are seen as steps towards this vision. The plan also includes cooperation with regional defense sectors and aims to address challenges such as bureaucracy and access to technology.


