Top Defense Companies in Saudi Arabia | The 5 Biggest Defense Companies
Marcopolis.net has compiled the ranking of the top defense companies in Saudi Arabia. View the list of the largest defense companies. The largest defense are companies are Military Industries Corporation, Advanced Electronics Company and Alsalam Aircraft.
Top Defense Companies in Saudi Arabia
Saudi Arabia’s Largest Defense Companies
Marcopolis.net has compiled the ranking of the top defense companies in Saudi Arabia. View the list of the largest defense companies. The largest defense are companies are Military Industries Corporation, Advanced Electronics Company and Alsalam Aircraft.
Defense sector continues to thrive in Saudi Arabia on the backdrop of higher military spending in 2014-2015. Saudi Arabia’s military spending increased by a whopping 17% in 2014 and the kingdom spent US$ 80.8 billion on defense. The amount represents almost 10% of Saudi GDP and 35.4% of total national spending: highest level since 2001. The kingdom is the 4th largest defense spender after the US, China and Russia. Saudi Arabia’s 2015 fiscal budget was the largest in the country’s history with US$ 230 billion and an estimated US$ 80 billion will be spent on defense in 2015 again.
The defense spending has a positive effect on the private sector because of Economic Offset Programme (EOP). Contractors are expected to provide offsets worth of 35% of the value of the contract. The EOP helped foster a Saudi grown defense sector, with many world-class companies employing thousands of workers such as Advanced Electronics Company (AEC). The program continues to support other industries and areas such as electronics, medicine, education, training and aerospace. According to EOP, by the end of 2006, 36 companies had been established with a total capitalization of US$4.5 billion. EOP has created about 6,500 jobs, or 120-150 advanced jobs for every US$ 1 billion.
There are two types defense companies in the kingdom: the local Saudi companies and foreign multinationals. The largest Saudi defense companies are Military Industries Corporation, Advanced Electronics Company, Middle East Propulsion Company, Abdallah Al Faris Company for Heavy Industries, Alsalam Aircraft and International Systems Engineering. The foreign firms include BAE Systems, Northrop Grumman, Boeing, Thales and Lockheed Martin. While it is difficult to rank the companies in the exact order the below is an approximation.
The List of Top Defense Companies in Saudi Arabia
| Rank | Company | Country | Industry | Description |
|---|---|---|---|---|
| 1 |
Military Industries Corporation |
Saudi Arabia | Defense | MIC is the largest defense company in Saudi Arabia. |
| 2 | Saudi Arabia | Defense | AEC is a private sector company to serve local, national, regional and international clients within the defense, telecom and manufacturing industries. The AEC charter includes design, development, manufacturing, the provision of upgrades and logistical support of electronic products & systems. | |
| 3 | Saudi Arabia | Defense | AlSalam Aircraft Company is a limited liability company established under the patronage of the Saudi Arabian Ministry of Defense Economic Offset Program, as part of the Saudi Arabia’s strategy to develop self sufficiency in the field of civil and military aircraft maintenance, overhaul and modification through the transfer of technology and the development of Saudi nationals. | |
| 4 | Saudi Arabia | Defense | The Middle East Propulsion Company (MEPC) was formed in 1992 as a joint venture partnership and is an Economic Offset Company which exists under the Economic Offset Program (EOP) of Saudi Arabia. MEPC provides military engine depot-level maintenance for Royal Saudi Air Force (RSAF) aircraft and remains committed to being a world class provider for overhaul of engines, parts, and services | |
| 5 | Saudi Arabia | Defense | International Systems Engineering (ISE) was established in 1988 as one of the Economic Offset companies established under the Peace Shield program. ISE delivers the mission-critical IT solutions, services and cutting edge technologies within the Defense, Aerospace and National Security sectors. |