Civil security to Saudi Arabia
Trends and opportunities
In 2016, Saudi Arabia again announced a decrease in spending across governmental sectors, except in the key portfolios of defence and civil security. War in Yemen, continuing regional armed conflicts and counter terrorism are key reasons why government spending has not been cut.
As it stands, total budget allocation for 2016 is 213.5 billion SAR (A$80 billion), about a quarter of the overall budget. The Ministry of Interior, Ministry of National Guard, Ministry of Defence, and Saudi Royal Guard are covered by the allocated budget.
Saudi Arabia recently announced its Saudi Vision 2030 roadmap for economic and developmental action to overcome oil price drops and diversify the economy and create jobs, the country aims to localise more than 50 per cent of military spending as well as create industrial activities in equipment, communication, and information technology (IT).
Opportunities exist in the following areas:
- accessories for personal and equipment (vehicles, aircrafts, and watercrafts)
- military VET and combat training
- manufacturing joint venture and know how transfer
- advance surveillance and boarder systems and technologies
- counter terrorism
- cyber security and defence
The defence sector is dominated primarily by United States, British, French, and other European countries. Companies from these countries have been established in Saudi for decades with offices and ongoing projects such as BAE system, Thales and Raytheon. Companies from Turkey and Singapore have recently become active in the defence sector in Saudi.
Marketing your products and services
Other than undertaking a large investment, partnership and creating a joint venture (JV) company would be key for market entry, as many government contracts require previous project experience as well as a local presence. In addition, having the right local partner is important to help with market entry and challenges.
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