President Biden’s visit may cement Saudi-American defense ties

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The US has supported three key security organizations in the Kingdom through FMS: The Ministry of Defense, the National Guard and the Ministry of Interior. (Supplied/Reuters)
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Saudi Arabia has become one of the largest consumers of defense equipment, owing to the need to defend itself from threats. (AFP file photo)
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Saudi Arabia has become one of the largest consumers of defense equipment, owing to the need to defend itself from threats. (AFP file photo)
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Updated 15 July 2022
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President Biden’s visit may cement Saudi-American defense ties

  • As strategic allies, the US and Saudi Arabia already share more than $100 billion in active foreign military sales
  • Defense ties have been further cemented by Lockheed Martin’s space technology partnership with the Kingdom

RIYADH: The United States and Saudi Arabia have an established relationship in terms of security, with more than SR375 billion ($100 billion) in active foreign military sales that President Joe Biden can build on during his visit to the Kingdom.

According to the US Embassy and Consulates website in Saudi Arabia, the two countries have developed consultations on the Middle East peace process, Gulf interests, and international economic and development issues.

The US has also supported three key security organizations in the Kingdom through FMS: the Ministry of Defense, the National Guard and the Ministry of Interior.

As the US’ most significant FMS customer, the Kingdom committed SR88.9 million in early 2022 on advanced weapons sales to upgrade its missile defense systems.

The purchase will include 31 Multifunctional Information Distribution System-Low Volume Terminals.

This deal came after the US State Department approved the potential sale of 280 AIM-120C air-to-air missiles in November 2021, valued at up to SR2.4 billion. In the wake of bumps on the road, US-Saudi relations are being reset with new military sales deals from the Kingdom.

The November sale was the first major foreign military sale to the Kingdom by the Biden administration since taking office and adopting a policy of selling only defensive weapons to the Gulf ally.

SR1.87 billion was the first military sale made under the Biden administration in September 2021, reported CNN.




Saudi Arabian Military Industries has partnered with multinational firms in developing the Kingdom's weapons industry. (Supplied)

Space technology prowess

Another notable development that cemented the US-Saudi defense ties was Lockheed Martin’s space technology partnership with the Kingdom.

Joseph Rank, CEO of Lockheed Martin in Saudi Arabia and Africa, told Arab News on the sidelines of the World Defense Show in Riyadh that it is the only US company that has sold the Kingdom a military satellite to provide secure communications.

HIGHLIGHTS

The two countries have developed consultations on the Middle East peace process, Gulf interests, and international economic and development issues.

The November sale was the first major foreign military sale to the Kingdom by the Biden administration since taking office and adopting a policy of selling only defensive weapons to the Gulf ally.

SR1.87 billion was the first military sale made under the Biden administration in September 2021, reported CNN.

Another notable development that cemented the US-Saudi defense ties is Lockheed Martin’s space technology partnership with the Kingdom.

In addition to its aerospace, arms, and information security divisions, the Washington-based company has a separate division for space.

As part of the Kingdom’s ongoing efforts to localize 50 percent of its military spending by 2030, Lockheed Martin completed two deals with its military regulatory body at the WDS in Riyadh in early 2022.




A US Air Force B-52 Stratofortress flies with Saudi F-15SAs during a bomber task force mission in the Gul area on Jan. 27, 2021. (USAF photo handout via AFP) 

As part of the program to localize the Terminal High Altitude Area Defense Weapon System, the Kingdom’s General Authority for Military Industries said that the first project is to localize the manufacture of missile interceptor launchers, and the second is to produce missile interceptor canisters locally.

“What’s exciting about this is that it gives the Kingdom the world’s most advanced missile defense system, which will keep it safe from the increased threats that we see around the region and the world,” said Rank.

He warned that today and tomorrow’s threats will be drones and missiles coming into the Kingdom, “so the focus of our efforts is to help them enhance their defense.”

Rank explained that this is being done with digital counter missiles, counter-drone systems, and a critical command and control system that will be produced mainly in the Kingdom and maintained by Saudis. It will be “a sovereign and commercial system, not subject to export approvals.”

 

Betting on air power

According to the Lockheed Martin executive, the growth is driven by Saudi Arabia’s need to defend itself from threats. Since the Kingdom is one of the largest consumers of defense equipment, “it only makes sense for them to produce their systems locally.”

It is working with GAMI and the Saudi Arabian Military Industries to build capability and capacity in the local industry. According to Rank, the 50 percent requirement was “challenging,” but it was what they “signed up to do.”




The Saudi Arabian Military Industries has partnered with multinational firm such as Lockheed Martin in developing the Kingdom's weapons industry. (Supplied)

Aside from providing training, spare parts and technical expertise for all the systems they sell to the Kingdom, he said Lockheed Martin is also an official partner with GAMI’s academy.

“The academy will initially start as a vocational-technical school to help teach young Saudis how to handle complex defense and mechanical challenges, and they will teach them how to sustain, repair and eventually design their systems,” Rank added.

He also said that Lockheed Martin started internship programs at Saudi universities “to create an ecosystem of R&D on campuses.”

The US also has a well-entrenched relationship with the Royal Saudi Air Force, which began with the purchase of the Kingdom’s initial F-15C/D fleet in 1978, according to a statement by Boeing.

After the Gulf War in the early 90s, the RSAF acquired additional F-15C/Ds, followed by F-15S Strike Eagles, to enhance its capability with one of the most advanced multi-role platforms in the world.

A foreign military sales agreement signed in December 2011 between the Kingdom and the US included F-15SA fighter jets, AH-64E Apache attack helicopters, AH-6 light attack/armed reconnaissance helicopters, Harpoon missiles, Joint Direct Attack Munitions, and Small Diameter Bombs, as well as associated support and training. This was, according to Boeing, the largest agreement in US history.




US F-15 fighter jets, manufactured by McDonnell Douglas, which is now part of Boeing, are the mainstay of the Royal Saudi Air Force. (AFP file photo)

Boeing and SAMI signed an agreement in 2022 to form a Kingdom-focused joint venture to provide maintenance, repair, and sustainment services for the country’s rotorcraft platforms.

Boeing has provided the Saudi Arabian Armed Forces with over 400 defense aircraft during its 77-year partnership with the Kingdom. Boeing’s investment also aims to develop the Kingdom’s aviation, defense, and space sectors through seven local partnerships.

The Ministry of Defense may receive more support due to Biden’s planned visit to the Kingdom to discuss both countries’ relationship with Crown Prince Mohammed bin Salman.

 

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PIF’s Alat unveils electrification, AI infrastructure business units 

Updated 06 May 2024
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PIF’s Alat unveils electrification, AI infrastructure business units 

RIYADH: Alat, a flagship company of the Public Investment Fund, unveiled two business units in electrification and AI infrastructure, to establish Saudi Arabia as a premier manufacturing hub globally.

The company unveiled its plans during the Milken Institute Conference held in Los Angeles.

According to a press release, the move comes as part of the PIF company’s strategic vision to spearhead a paradigm shift in industry sustainability while propelling Saudi Arabia on the global stage. 

Alat Global CEO Amit Midha said: “I am pleased to announce these two exciting new divisions as they will make a significant contribution to Alat’s overall strategic goal of developing an advanced, sustainable future for the industry.”

The electrification arm will fortify grid technology, catering to the burgeoning demand for electricity driven by exponential growth in renewable energy sources like solar, wind, and hydrogen. 

By harnessing Saudi Arabia’s solar energy and other clean resources, the firm seeks to manufacture innovative solutions that will catalyze the global energy transition and drive decarbonization in industry.

The electrification unit will specifically focus on enhancing transmission and distribution technologies, facilitating the integration of renewable energy into existing grids, and pioneering advancements in gas and hydrogen generation and compression technologies.

On the other front, the AI Infrastructure business unit will address the escalating global demand for AI capabilities across industries. 

This entails the development of cutting-edge technologies encompassing network and communications equipment, servers, data center networking, storage, industrial edge servers, and Industry 4.0 computing. 

“The global electrification market size reached $73.64 billion in 2022 and it is expected to hit around $172.9 billion by 2032, growing at a CAGR of 8.91 percent between 2023 and 2032,” the press release added.

The global AI Infrastructure market is set to hit $460.5 billion by 2033, with a robust 28.3 percent compound annual growth rate, driven by widespread adoption across industries for innovation, decision-making enhancement, and task automation.

As a gold sponsor at the Milken Institute Conference, the firm now has nine business units focused on sustainable technology manufacturing.

“Alat will invest $100 billion by 2030 across these business units to develop key partnerships and build advanced manufacturing capabilities in Saudi Arabia to bring jobs and economic diversification to the Kingdom,” the press release said.


Saudi Arabia’s Qiddiya to build region’s largest water theme park

Updated 06 May 2024
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Saudi Arabia’s Qiddiya to build region’s largest water theme park

  • Aquarabia will also feature the first underwater adventure trip with diving vehicles

RIYADH: Saudi Arabia Qiddiya Investment Co. will construct the region’s largest water theme park as a cornerstone of its Six Flags Qiddiya City venture it was announced on Monday.
To be named Aquarabia, Qiddiya hopes to draw visitors from around the globe with 22 attractions and water experiences suitable for all family members, as well as some “world-first” attractions, Saudi Press Agency reported.
These attractions include the world’s first double water loop, the tallest water coaster with the highest jump, the longest and highest water racing track, and the tallest water slide.

Aquarabia will also feature the first underwater adventure trip with diving vehicles, catering to adventure enthusiasts with water sports areas designated for rafting, kayaking, canoeing, free solo climbing, and cliff jumping.
Additionally, the park will introduce the first surfing pool in the Kingdom, incorporating immersive design elements themed around ancient desert water springs and Qiddiya’s wildlife.
With sustainability in mind, Aquarabia will implement advanced systems capable of reducing water waste by up to 90 percent and decreasing energy consumption. As part of the Six Flags Qiddiya project, the venture, the first Six Flags of its kind outside North America, aims to recycle operational waste, diverting over 80 percent from landfill.

Scheduled to open in 2025, both Aquarabia and Six Flags Qiddiya City are situated within Qiddiya City, forming a fully walkable neighborhood offering a diverse array of activities, accommodations, dining options, and relaxation spots.
Abdullah Al-Dawood, managing director of Qiddiya Investment Co., hailed the announcement as a significant milestone for Qiddiya and the entertainment, tourism, and sports sectors in the Kingdom.
He emphasized that the projects will cater to diverse entertainment needs while contributing to economic diversification and job creation in the tourism sector.
The project also aims to meet the growing local demand for immersive entertainment experiences, particularly in water activities, aligning with the goals of Saudi Arabia’s Vision 2030 to enhance local tourism and employment opportunities.
The unveiling of Aquarabia follows the announcement of several other entertainment, sports, and cultural attractions in Qiddiya, including the world’s first multi-use gaming and electronic sports area, the multi-sport Prince Mohammed bin Salman Stadium and the Dragon Ball amusement park.
 


Saudi Arabia ascends as key destination for global talent: BCG report

Updated 06 May 2024
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Saudi Arabia ascends as key destination for global talent: BCG report

RIYADH: Saudi Arabia has emerged as a key player in attracting global talent amid ongoing geopolitical shifts and financial uncertainty, moving up two spots on the list of preferred countries for workforce mobility. 

The “Decoding Global Talent 2024” report by Boston Consulting Group highlights Saudi Arabia’s rise to the 26th most preferred country, underscoring the success of the Kingdom’s strategic initiatives to position itself as a global hub for professionals.  

This fourth edition of the study draws insights from over 150,000 professionals across 188 nations, tracking global talent trends since 2014. 

Riyadh’s rise to the 54th rank globally underscores its emergence as a hub of opportunity and progress in the eyes of global talent.  

Christopher Daniel, managing director and senior partner at BCG, said: “As the global talent shortage becomes an increasingly pressing challenge for the world's foremost economies, Saudi Arabia is emerging as a pivotal player in narrowing this gap.”  

He added: “With a significant proportion of respondents citing the quality of job opportunities, the attractive income, tax, and cost of living, as well as the assurance of safety, stability, and security as key reasons for choosing the Kingdom, it’s evident that Saudi Arabia’s strategic investments in its labor market are bearing fruit.” 

Daniel noted that the Kingdom is leveraging labor migration to enhance its workforce, offering a secure and hospitable environment that caters to the diverse needs of international professionals. 

“By fostering a job market that is attuned to the evolving aspirations of global talent while prioritizing their well-being, Saudi Arabia is positioning itself as a compelling destination for those seeking growth and fulfillment in their careers,” he said.

Furthermore, the report highlights that younger generations and individuals from rapidly expanding populations are particularly attracted to global mobility, pursuing diverse experiences and opportunities for professional growth. 

With 23 percent of global professionals actively pursuing international positions and 63 percent remaining receptive, Saudi Arabia is well-positioned to capitalize on this trend.  

The Kingdom offers an enriching environment for a globally oriented workforce to excel and progress in their careers, presenting an enticing option for individuals seeking both personal and professional advancement in an ever more interconnected global landscape. 


Riyadh Air to expand fleet with additional aircraft orders, CEO reveals 

Updated 06 May 2024
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Riyadh Air to expand fleet with additional aircraft orders, CEO reveals 

RIYADH: Saudi Arabia’s Riyadh Air plans to bolster its aircraft lineup through additional orders, as it requires “a very large fleet” to establish itself alongside regional giants, stated the CEO. 

This move comes as the Kingdom’s second flag carrier, backed by the country’s Public Investment Fund, ordered 39 Boeing 787-9 jets last year, with options for 33 more. 

It also aligns well with Saudi Arabia’s goal to expand its aviation industry and attract more tourists, broadening its airline capacity beyond pilgrimage travel, which currently forms the backbone of the country’s inbound tourism. 

“We need a very large fleet, we’re going to make a number of additional orders,” CEO of Riyadh Air, Tony Douglas, said in an interview with Bloomberg Television. 

He added: “We will be making a narrowbody order, we’ll probably be doing another large order after that to build us up to scale.”  

During the interview, Douglas, who previously led the Abu Dhabi flag carrier Etihad Airways, expressed being “very conscious” of potential delays to aircraft deliveries. This concern arises as both Boeing and Airbus SE grapple with production challenges amidst record demand and supply issues at the two plane makers. 

The establishment of a second Saudi national airline alongside the existing flag carrier Saudia is part of the Kingdom’s economic diversification plan. 

In November 2023, Douglas expressed confidence in the demand for travel. “We’re not well enough connected. It’s as simple as that,” he said at the time. 

The new airline stands to benefit from Saudi Arabia’s rapidly growing economy and the increasing influx of tourists to the Kingdom. Riyadh Air does not intend to pursue mergers and acquisitions to fuel its growth. “No, it’s organic,” Douglas emphasized at the time. 

The initial destinations will include major cities in Europe, the US East Coast, and Canada, with the inaugural flight scheduled to depart by June 2025. 

By that time, Riyadh Air will have secured slots at major airports, Douglas mentioned, although hubs like London Heathrow are already operating close to capacity. 

“It won’t be easy ... but we have no reason to be anything other than confident that we’ll resolve all of that,” he said at the time. 


Saudi Arabia and Egypt retain top spots in MENA travel preferences: Wego study

Updated 06 May 2024
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Saudi Arabia and Egypt retain top spots in MENA travel preferences: Wego study

RIYADH: Saudi Arabia and Egypt remain dominant destinations among Middle East and North Africa travelers in 2024, retaining top spots in international preferences, according to a study. 

Singapore-based travel booking app Wego ranked Egypt as the top destination for tourists from the region between January and April, followed by the Kingdom, with India consistently holding the third spot since 2016. 

Saudi Arabia’s second spot on the wish list is a clear indication of the Kingdom’s progress as a global tourist destination, aligning with its National Tourism Strategy aiming to attract 150 million visitors by 2030. 

“We are excited to see Egypt emerge as the leading destination for travelers in the MENA region during Q1 2024. According to Wego's data, Egypt stands out as a favored choice among travelers seeking unique cultural experiences and diverse attractions,” said Mamoun Hmedan, chief business officer at Wego. 

He added: “Meanwhile, the United Kingdom retains its position as the preferred European destination for Middle Eastern travelers.” 

Among Middle East destinations, the top three — Egypt, Saudi Arabia, and UAE —maintained their positions from 2023. Egypt and the Kingdom, in particular, have consistently held the top two spots since Wego began tracking customer trends over a decade ago. 

The study utilized traveler searches and hotel booking data from its website as the foundation for its findings. 

The report further revealed that the UAE ranked as the fourth favorite destination, followed by Pakistan, Kuwait, and Turkiye. 

Meanwhile, China dropped one spot, reaching the 27th top destination among MENA travelers. 

The UK remains the top European destination from the Middle East, holding the first spot for 10 of the last 11 years, briefly overtaken during the pandemic. Italy has notably surged from fourth to second. 

Italy, a top global tourist spot, consistently ranks in the top ten European destinations for Middle East travelers.   

This year marks Italy’s debut in the top three. Joint investments between Saudi Arabia and Italy in late 2023, along with direct flights by ITA Airways to Riyadh and Jeddah, signify growing ties. 

Countries farther from the Gulf region, such as Morocco, Indonesia, and the US experienced the most decline among top destinations. 

This trend continued in 2024, with Malaysia, the Philippines, and the US dropping out of the global top 10, while Kuwait, Pakistan, and Jordan, which entered the top ten last year, remain preferred destinations for MENA travelers.