Walid Abukhaled has stepped down from his role as CEO of Saudi Arabia Military Industries (SAMI) after four years, as confirmed by the company.
In a post on X dated August 29, SAMI announced the appointment of Eng. Omar AlMadhi, Vice Chairman of the Board and Chairman of the Board Executive Committee, as the interim CEO. The company emphasized its commitment to supporting and developing the defense industry in Saudi Arabia, maintaining its position as a key national partner in the defense and security sectors. The reasons for this leadership change were not disclosed, and a representative did not provide immediate comments in response to inquiries from Breaking Defense.
Established in May 2017 as part of Saudi Arabia’s Vision 2030 initiative, SAMI aims to localize 50 percent of defense production in the Kingdom by 2030. Andreas Schwer, a German national and former Rheinmetall executive, was appointed to lead the firm in January 2018. Two years later, Abukhaled took over the reins, drawing on his background as the CEO for the Middle East at the US-based defense company Northrop Grumman.
Reflecting on SAMI’s growth, Abukhaled expressed pride in the company’s achievements during his tenure, noting that it had risen to become one of the world’s top 100 defense companies. „At the last World Defense Show in 2022, we weren’t on the map at all. After four years of operations, we became number 98. In the past year, we climbed 19 positions to reach number 79 globally,” he told Breaking Defense during an interview at WDS 2024 in February.
Under Abukhaled’s leadership, SAMI made several acquisitions, including national defense firms such as Advanced Electronics Company and Alsalam Aerospace. The company also pursued joint ventures and entered into agreements for technology transfers, including a significant $3 billion deal to localize Turkish Baykar’s Akinci drone production in Saudi Arabia.
Alongside global defense trends in cybersecurity and AI, Abukhaled reiterated four key targets for SAMI: developing production facilities, exploring export opportunities, investing in international companies, and fostering national talent. A permanent successor to Abukhaled has yet to be announced.
