RIYADH: The Defense Ministry will for the first time allow Saudi firms to bid to supply basic materials excluding arms with the long-term goal of encouraging a domestic military industry, officials said.
The move, which will open a field that was reserved for foreign manufacturers, will first involve some 15,000 items that range from plastic to pipes, covers for jet engines and batteries, Col. Attiyah Al-Maliki said at a meeting with businessmen at Riyadh Chamber of Commerce and Industry late on Saturday.
Authorities expect the move backed by Assistant Minister of Defense and Aviation for Military Affiars Khaled bin Sultan to encourage foreign suppliers to partner with Saudi peers and set up shop within the Kingdom so that they can continue to qualify as suppliers.
The Defense Ministry has created a Central Committee for Local Industrialization, which comprises business leaders and defense officials to develop local capabilities, ensure speedy deliveries and reduce costs, Col. Al-Maliki said. Abdul-Rahman Al-Zamil, a member of the committee and chairman of Zamil Group, welcomed the move. This is a breakthrough for local firms because before all purchases were internationally tendered or bought from abroad by local suppliers. We know that these (15,000) products can be made locally, Al-Zamil said at the meeting. Weapons and heavy military gear are excluded. The Defense Ministry will gradually eliminate from international tenders all items that can be produced here ... We are working for the next 20 years, Al-Zamil said. This is just the beginning ... So the field remains open, said Col. Al-Maliki.
We will gradually open up to more sophisticated industries. Nothing should prevent Saudi Arabia from making its own fighter jets. The announcement comes after Saudi forces fought their first war in more than 15 years against Yemeni intruders.
At times of crises people understand better the importance of getting supplies locally ... At times of high need, exporters impose their price and you have to take it, said Al-Zamil.
Asked if the move was linked to concerns over Irans nuclear standoff with the West, Al-Zamil said: The intention of the military establishment is to maximize military industrialization and localize as much as possible the needs ... such as maintenance of military equipment.
We are a world leader in water desalination yet we import all of the desalination machinery, he added. ¬