SAMI adds' crown jewel' AEC to Saudi's defence powerhouse

The largest military industries deal ever in Saudi Arabia has been disclosed with Saudi Arabia Arabian Military Industries (SAMI), acquiring the Advanced Electronics Company (AEC)

The purchase is expected to complete in the first quarter of 2021 following regulatory approvals. As a result, AEC will become a 100% Saudi-owned company.
SAMI is a wholly owned subsidiary of the Public Investment Fund (PIF and revealed the deal during a special ceremony organized by SAMI in the presence of the members of SAMI’s and AEC’s Board of Directors, and senior officials from the Ministry of Defence, General Authority for Military Industries (GAMI), PIF, BAE Systems Saudi Arabia, Saudi Arabian Airlines (SAUDIA), and other stakeholders.
Ahmed Al-Khateeb, chairman of SAMI, said: “This deal strengthens SAMI’s presence in the strategically important defence industries market and supports its plans to transfer and localize the military industries. The acquisition will also enhance AEC’s opportunities to expand and compete in its field.”
Al-Khateeb described AEC as the ‘crown jewel’ of Saudi Arabia’s military industries. “AEC will bring about transformative change in the Kingdom’s defence sector by enhancing the industry’s competencies and advancing innovation. With state-of-the-art products, innovative technologies, several decades of experience, and the collective efforts of both SAMI and AEC, the acquisition will shape the future of the domestic defence ecosystem and make long-lasting contributions to the national economy for the upcoming years, through skills development, employment generation, and exports, he said”.
Saudi Arabia’s Vision 2030 programme had called for the transfer and localisation of military industries as a key tenet of the Vision. “This achievement also supports PIF’s efforts through SAMI in localizing cutting-edge technology and knowledge, as well as building strategic economic partnerships,” Al-Khateeb added.
AEC is considered a major facilitator of Saudi Arabia’s Vision 2030 thanks to its 32-year experience in the military industries market and the leading role it plays in the defence and aerospace sector, In addition to facilitating the transfer of technology and enhancing local production, the acquisition will also enable SAMI to consolidate its defence electronics sector.
Abdulaziz Al-Duailej, CEO of AEC, said: “SAMI’s acquisition of AEC stock will help us reach our goals and strategic plans for the next five years. It also places us under the umbrella of the Public Investment Fund (PIF), the KSA’s sovereign wealth fund, which constitutes a milestone for the company and fills us with pride as directors and employees.”
AEC has played a pioneering role in the fields of modern electronics, manufacturing, system integration, and repair and maintenance services since 1988. Around 85% of the company’s employees are Saudi nationals, including more than 300 of its male and female engineers. AEC also has over 100 strategic partners and has successfully completed more than 1,000 projects.