RIYADH: Saudi Arabia, one of the world's biggest defence spenders, on Thursday said it is creating a new military industries firm as part of efforts to boost the kingdom's defence production.
The government-owned company, Saudi Arabian Military Industries (SAMI), "aims to become one of the world's top 25 defence companies by 2030," a statement from the Public Investment Fund (PIF) said, two days before the arrival of US President Donald Trump for a series of summits, reports AFP.
American defence contractors are major suppliers of weapons to Saudi Arabia, which for more than two years has led a coalition conducting air strikes and other operations against rebels in Yemen.
SAMI will be both a manufacturer and service provider, PIF said.
This will include maintenance and repair of fixed-wing aircraft, production of drones, and military vehicle repair and manufacture.
The company will also be involved with weapons and missiles, plus radars and other defence electronics.
It will contribute about $3.7 billion to the kingdom's gross domestic product and invest more than $1.6 billion in research and development by 2030, creating more than 40,000 jobs, PIF said.
Saudi Arabia's government says only about two percent of its security and defence spending is local, but that is targeted to reach 50 percent by 2030.