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Supporting local content is the focus of Ministry of Defense, SABIC
Saudi Gazette report​​
JEDDAH — The Ministry of Defense is now moving towards collaborating with local producers to provide spare parts and different services that the ministry needs said Gen. Attiya Al-Malki, director general of the department overseeing the localization of manufacturing.

He added that currently there are various committees, which ensure local producers are involved in the ministry’s projects. Previously, he explained, there was no specific formula to make deals with locals and there was a lack of information about local factories and lack of trust.

However, he said that they have created committees that work on linking the demand with what local factories produce. He noted that they have achieved 96% of last year plans.

Following the announcement of the Saudi Vision 2030, the ministry, said Al-Malki, revised their regulations and policies to support the local industry. Currently, he added, foreign investors could make deals with the ministry only if they commit to localization.

“These are not mere promises, foreign investors are being asked about the local factories they will work with and the local products they will get.”

Al-Malki explained that there are 600 local factories that are equipped to provide their products to the ministry. “We have used 17,000 local products and there are 350 million high quality parts that are being produced locally from 2010 until today.”

Al-Malki was speaking at a session entitled “The Kingdom of Future: A leading Industrial Power and an International Logistic Hub”, as part of the events celebrating the Jeddah Chamber of Commerce and Industry's 75th anniversary.

In the same session Fuad Musa, vice president of SABIC’s local content and business development, stated that they have been classified as one of the three biggest companies in the chemical industry in the world in 2018.

More success, he said, is to be expected in the future in line with Saudi Vision 2030. He highlighted their role in supporting local content by encouraging public private partnership and providing training.

He added that they have allocated SR1.5 billion to support the local content. He said that there are 350 investment projects, 150 of which have been approved, and 43 are in the final stages.

Awaid Al-Harthi, CEO of the National Industry Development Program, said 13 programs have been put forward to develop the logistics industry. He added that some 100 factories have been chosen to encourage the diversification of economy.

Similarly, continuous work is going on to put forward Saudi Arabia as a regional logistic hub. He added that they are collaborating with China to benefit from Saudi Arabia’s position on the Silk Road.​