Saudi Arabia is one of the largest markets for security equipment and technology in the region. The scope of security related spending has expanded to include more sophisticated information technology and the protection of other vulnerable targets. Saudi Arabia will continue to mobilize all resources to maintain and strengthen highly effective Homeland Security – Homeland Defense infrastructure. Spending for anti terrorism goods and services is expected to keep growing. As the country implements ambitious plans to develop its petrochemicals industry and other downstream activities, the need for a wide range of security products and services will increase. The market for security technology and products in Saudi Arabia could easily grow by 25-30 percent over the next two-three years. It is forecasted that Saudi Arabia is expected to spend US$14 billion to protect its oil facilities and other infrastructure for next six years. With this Saudi Arabia Security market will become the world’s largest, national energy security market.
Considering the size and prosperity of the country, Saudi Arabia’s security industry is underdeveloped. The country relies heavily on imports despite previous efforts to create a degree of self-sufficiency in its security production. There is strong receptivity to U.S. security products and services.
The security of energy infrastructure has become one of the foremost concerns of governments everywhere. Producers and users alike know that terrorists around the world could not fail to notice the vulnerability of the global markets, and the destructive impact that any disruption in energy supplies will have on many national economies. The recognition of this vulnerability, in turn, drives the infrastructure security markets.
Securing the flow of oil from producers to consumers is a crucial global concern. Saudi Arabia, the world’s largest oil exporter, understand the importance of uninterrupted flow of oil, and they know that one successful terror attack on the Saudi oil industry will send oil prices to a new record high, resulting in a deep global recession, a losing proposition for all involved. To head off such an eventuality, the Saudis are forecasted to procure $14 billion of security systems and services over the next six years, to harden the kingdom oil infrastructure security.
Homeland security is one of the growing sectors today. Initially the focus was on infrastructure protection, border protection and protecting oil and gas facilities. However, significant effort and resources are now being expended to protect critical infrastructure for the production and transportation of oil and gas. Saudi Aramco, the world’s largest oil company is also one of the largest non-military end-users of security items and the majority of its security requirements have been sourced from the U.S.
Saudi Arabia’s Homeland Security market is unlike any other market in the world. Saudi Arabia is threatened by internal and external terrorism. Below are some of the areas that will have good potential in the security sector:
• Hajj Annual Pilgrimage (an Olympics-size event held every year) – interoperability communications equipment, anti riot equipment, protective gear.
• Oil industry – IT perimeter protection equipment and personnel, hazmat decontamination, risk assessment, maritime security
• Private Sector – Perimeter control, emergency planning, VIP protection, access control and biometrics.
The Ministry of Interior (MOI) has signed a US$2.6 billion contract for the 6,000 kilometer second phase of the national border fence and security systems. The local Al-Rashid Trading and Contracting Company and German-based European Aeronautic Defense & Space Company (ADS) have executed this contract. The work involves installing a radar-based system to detect incursions along Saudi Arabia’s border with Jordan, Kuwait, Qatar, the UAE, and Yemen as well as along the Gulf and Red Sea coasts.
Saudi Aramco has awarded a contract to Northrop Grumman for providing Long Range Detection systems, control rooms, IDAS systems for its approximately 30 major industrial sites. The project is estimated to be valued at around US$250 million.
Saudi Aramco’s two new JV refineries one in Jubail and other one in Yanbu will present opportunities for a range of security equipment.
Saudi Aramco and Dow plan to build a $26 billion petrochemicals complex in Ras Tanura on the Eastern coast of Saudi Arabia will present opportunities for a range of security equipment and systems.
The six new economic cities will be in Madina, Hail, Tabuk, Jizan, Ras Az-Zour, and Rabigh, The King Abdullah Economic City, which is to be built near the western industrial city of Rabigh, will cost about US$26.6 billion. King Abdullah Economic City will be located. All of these six cities will have a good component of security equipment for their residential, schools, office complexes, ports and industrial developments.
An expanding mining sector, along with the necessary transportation infrastructure has created a demand for relevant security systems.