What happened to this project?
Quote 1 :
Top military role for Sabic chief
Sean Cronin
February 14, 2015
The Saudi engineer who helped to turn
Sabic into one of the world’s biggest industrial groups is taking the helm of the kingdom’s military industries corporation.
New Saudi King Salman appointed the Sabic chief executive
Mohamed Al Mady to the role, according to a royal decree published on the state news agency SPA yesterday.
The statement said he would become the chairman of the General Organization for Military Industries with immediate effect.
It did not say if Mr Al Mady would be leaving his post at Saudi Basic Industries Corporation.
Mr Al Mady made headlines in 2013, when he said that compulsory military service could help to solve the Arab youth unemployment crisis.
The move would help to change the mindset of young people unwilling to consider certain jobs, he told a World Economic Forum meeting in Jordan in 2013.
“The problem is you have to tackle the cultural dimension of the labour force. People don’t accept jobs. They want the jobs that will give them higher money and stability. That’s not going to happen.
“They have to accept certain job categories that fit their situation,” he told a session about tackling joblessness in the Arab world.
Mr Al Mady joined Sabic in 1977, when there were only five other people working for it. Within three decades it had grown to become the world’s biggest chemical maker. Today it has a market capitalisation of US$76 billion and employs 40,000 people.
He was one of a handful of young Saudis hand-picked by the kingdom’s ministry of education to learn chemical engineering in the US in the early 1970s at a time when Saudi Arabia did not have a single major chemical plant.
They were to learn how to turn the vast oil reserves lying deep below the kingdom’s deserts into valuable chemicals using the waste gases that at that time were burned off at the wellhead during the oil drilling process, known in the industry as flaring.
The company was able to rapidly expand its operations in the kingdom and beyond, helped by its ability to tap cheap natural gas to manufacture plastics while competitors in Europe and the US struggled to compete and paying much more for the gas or oil feedstock needed to make ethylene – the building block petrochemical.
But the recent growth of the shale gas industry has dramatically revived the fortunes of many of Sabic’s competitors reducing the price advantage enjoyed by the Saudi company for decades.
Last month it reported a 29 per cent drop in fourth quarter profits.
The National.ae
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Quote 2 :
Saudi industry preparing for new modernisation effort
Mohammed Najib, Ramallah - IHS Jane's Defence Weekly
15 March 2015
Saudi defence and security companies are preparing to play a major role in the country's defence modernisation efforts, senior Saudi defence sources have told IHS Jane's .
"We were asked to be ready to take part in the huge Saudi armed forces new armament process that will be led by his highness new Saudi Defence Minister Muhammad bin Salman," Ghassan al-Shibl, the CEO of Saudi Arabia's Advanced Electronics Company (AEC), told IHS Jane's in late February.
The appointment of engineer Muhammad Madi as a head of the kingdom's Military Industries Corporation (MIC) has been seen as a strong sign of the new defence minister's vision and strategy in supporting local industry, which, according to Saudi armament policy, must have a manufacturing role in any arms deal brokered with foreign defence companies.
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Quote 3 :
Operation Protect
Saudi Arabia 2015, Industry
Focus : Defense Industry
As a defense market, Saudi Arabia remains one of the world's strongest and fastest growing; however, key appointments and developments have invigorated the Kingdom's longstanding mission of domestic military industrialization and strengthening the local supply chain.
In terms of purchasing power, Saudi Arabia and some of its Gulf neighbors have been among the world's largest spenders in recent years. In 2014, Saudi Arabia spent roughly 10% of its GDP on defense, good enough to lead the region in percentage of GDP, surpassing India as the largest importer of defense equipment to take 3rd place globally, as well as ranking 7th in the world for total defense spending. Last year also witnessed Saudi Arabia becoming US's top defense trading partner. According to the IHS annual Global Defence Trade Report, this dramatic trend is far from over. Saudi Arabia increased its imports spending by 54% from 2013 to 2014, and an additional YoY increase of 52% is projected for 2015, or a total of $9.8 billion. Potentially, the Middle East could become a $110 billion import market over the next decade. However, the Kingdom has also set its sights expanding the capabilities of its local supply chain and defense industry. Complete self-sufficiency, of course, still remains an unfeasible goal, at least for the foreseeable future, but due to Saudi Arabia's financial resources, close relations with Washington DC and leading defense firms on either side of the Atlantic, the Kingdom has made some dramatic industrial leaps. As one of the US's longest and stoutest allies in the region, Uncle Sam has understood that its own regional strategic goals would be greatly aided by the development of the Kingdom's local defense industry. Beyond being a major supplier of military equipment to Saudi Arabia, the US has also greatly contributed in crucial technology and know-how transfer via such initiatives as the Economic Offset Program.
Perhaps the clearest example of Riyadh's emphasis on its military industrialization in 2015 is the appointment of former SABIC CEO Mohamed Al Mady to head the Military Industries Company (MIC). The MIC is the government entity charged with, among other things, “actively developing the Kingdom's military factories to accommodate advanced military manufacturing, in order to satisfy the needs of the military sector and to contribute to developing the nation's military base through technology transfer."
Al Mady, who was appointed via Royal Decree from HRH King Salman in February, worked with SABIC for nearly four decades, starting from when it was merely a five person operation to the 40,000-employee, $76-billion market cap giant it is today. His expertise and leadership—demonstrated by his guidance of SABIC's transformation toward becoming the world's largest chemical manufacturer—is seen as a large boon for the domestic military industrialization of the country.
Also part of MIC's mission is to aid the defense sector in attracting Saudi youth with job opportunities. Overall unemployment in Saudi Arabia remains in the double digits, with unemployment amongst Saudi youth even higher than the national average. Thus, the indigenous development of the defense sector is not only seen as a key strategic imperative from a security standpoint, it also figures to be quite valuable in two other major government initiatives: diversifying the national economy and lowering unemployment rates for Saudi nationals.
In the private sector, some of the world's largest defense companies are also renewing their commitment to the country and further contributing toward the industry's localization and technology transfer. For example, the US's Northrop Grumman, which has been dealing with the country for over four decades, recently designated the Kingdom as one of six “priority countries," and will establish a 100% non-joint venture local presence. The company, through its already existing joint ventures in the country, already employ 1,700 people with 60% Saudization. BAE Systems, likewise, also recently designated Saudi Arabia as one of its regional hubs.
Domestic military industrialization has been Riyadh's strategy for quite some time, but regional crises in 2014 and the first half of 2015 have heightened the urgency of the matter. With the Islamic State (IS)—which has made its designs on the Kingdom known to everyone—controlling large portions of Iraqi territory and with Saudi Arabia currently leading an Arab coalition air campaign against Shia Houthi rebels in Yemen, the country is facing serious security issues on both its northern and southern border.
The Business Year
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Otherwise, chuuut ! All the rest is secret…
And anyway, we (Gulf Arabs) have all deserted completely the forum. It is all up to you now, only you speak just between you. Happy !!!
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