Saudi wealth fund starts defence company to meet military needs

Riyadh

SAUDI Arabia's sovereign wealth fund has set up a defence company to help reduce the kingdom's reliance on foreign purchases and to diversify the economy away from oil ahead of a visit by US President Donald Trump.

The Saudi Arabian Military Industries, or SAMI, will manufacture products and provide maintenance services across units, including air and land systems, weapons and missiles, and defence electronics, the Public Investment Fund said in a statement on Wednesday. The new company is wholly owned by the government.