Saudi Arabia has spent 5.1 billion riyals ($1.4 billion) in incentives to boost its local military industry over the last two years, the governor of the sector's General Authority said on Monday.
Ahmad Al-Ohali said the incentives included 3.3 billion riyals which was directed to research and development in the military industries in 2021 and 2022. The remaining 1.8 billion riyals was distributed to companies, including Saudi Arabian Military Industries (SAMI), Ohali said.
SAMI's chief executive officer Walid Abukhaled said the company will focus on unmanned systems, radars and cybersecurity in coming years.
Both were speaking at a forum in Riyadh in the wake of the Kingdom's 2023 budget announcements.
Developing local industries, including in the military sector, is part of a bigger plan launched by Prince Mohammed bin Salman, Crown Prince and Prime Minister, to diversify the Saudi economy away from oil.
"The Kingdom had the third-biggest defense budget in the world, now it is the ninth thanks to spending rationalization," Abukhaled said.
