Skip to content Skip to Search
Skip navigation

Zamil wins $153m deal to build Saudi defence complex

By Andy Sambidge
Visitors inspect a combat helicopter at a Riyadh defence show. Saudi Arabia is one of the world's biggest military spenders Reuters/Ahmed Yosri
Visitors inspect a combat helicopter at a Riyadh defence show. Saudi Arabia is one of the world's biggest military spenders
  • Builder named for Al Kharj site
  • Defence budget for 2024 is $72bn
  • Vision 2030 aims to ‘localise’ spend

A Dammam construction company has won a SAR575 million ($153 million) contract to build a defence manufacturing complex in Al Kharj, central Saudi Arabia.

Zamil Steel Construction Company agreed the deal with Saudi Arabian Military Industries (Sami), a Public Investment Fund company set up to lead the development of the kingdom’s defence industry.

The Al Kharj complex will develop, design and manufacture land defence systems, according to a filing by Zamil’s parent company on the Saudi Stock Exchange.

Zamil will build the manufacturing facilities, utility buildings and admin offices at Al Kharj, as well as providing structural and civil engineering services, finishing and mechanical, electrical and plumbing works. 

Saudi Arabia is one of the world’s biggest spenders on defence, particularly as a proportion of GDP.

It was fifth in GlobalData’s military spending list for 2022 with $65.3 billion, behind the United States, China, Russia and India.

However its spending in the period 2019-2023 represented 7.9 percent of GDP, compared to 3.1 percent for the US.

The defence budget for 2023 is $69.1 billion. In the kingdom’s 2024 budget, approved earlier this month, defence was allocated almost $72 billion out of a total expenditure of $333 billion.

GlobalData forecasts that Saudi military spending will grow 4.5 percent a year up to 2028, reaching $86.4 billion.

Much of this funding goes to foreign businesses, however, so the Vision 2030 strategy includes a plan to “localise” 50 percent of military spending.

Sami announced plans in February for the Al Kharj complex, which is set to manufacture armoured vehicles and advanced ground systems.

Zamil is part of Zamil Industrial Investment Company, which employs about 9,000 people and sells products in more than 90 countries. It has factories in Saudi Arabia, the UAE, Egypt, India and Vietnam.

Latest articles

Sainsbury's has the second-largest share of the UK grocery market, at 15 percent, behind Tesco at 28 percent

Qatar to reduce stake in UK supermarket Sainsbury’s

Qatar’s sovereign wealth fund is selling part of its 15 percent stake in the British supermarket Sainsbury’s as the fund pushes ahead with expansion in the United States and Asia, particularly China and India. Qatar Investment Authority (QIA), the biggest shareholder in Sainsbury’s, is selling £306 million ($399 million) worth of shares in the retailer, […]

Shoppers in Kuwait's Avenues Mall – the IMF says the country needs to encourage private sector employment

Kuwait needs to push reforms for economic growth, says IMF

Kuwait must accelerate the introduction of fiscal and structural reforms that are needed to increase private sector-led growth and diversify its economy away from hydrocarbons, the International Monetary Fund said on Friday. Kuwait’s economy will contract by 3.2 percent this year because of an Opec+ oil production cut, but will grow by 2.8 percent in 2025 […]

Thani Al Zeyoudi, Minister of State for Foreign Trade of the United Arab Emirates, (UAE) speaks during the Skybridge Capital SALT New York 2021 conference in New York City, U.S., September 15, 2021. REUTERS/Brendan McDermid Dr Thani bin Ahmed Al Zeyoudi, the UAE’s minister of state for foreign trade, said 'Malaysia offers substantial opportunity for our exporters, industrialists and business leaders' UAE Malaysia Cepa

UAE and Malaysia sign Cepa to increase bilateral trade

The UAE and Malaysia have signed a free trade deal, bringing the number of deals the Gulf state has agreed with foreign governments to 12. The comprehensive economic partnership agreement (Cepa) will seek to eliminate or reduce tariffs, lower trade barriers, increase private sector collaboration and create new investment opportunities, the two countries said in a […]

Modern buildings in the city center of Riyadh, Saudi Arabia

Riyadh leads Saudi Arabia’s hot property market

Strong population and employment growth in Riyadh is driving a surge in real estate transactions as new properties cannot come on the market fast enough. A dramatic rise in the number of deals in the 12 months to the end of June was also visible in Jeddah and Dammam, according to a report this week […]