The 966 Episode 21: A deep dive on the homegrown Saudi defense industry and the U.S.-Saudi security relationship with David Des Roches

Episode 21 of The 966 has the hosts welcoming special guest and security expert David Des Roches, Associate Professor at the National Defense University and a Non-Resident Fellow, AGSIW. Des Roches joins The 966 to discuss the status of the U.S.-Saudi security relationship and how Saudi Arabia is progressing in its efforts to develop a homegrown defense industry.

0:45 – Richard’s one big thing this week is Saudi Arabia in 2021 continued its exponential growth as a theatrical box office market.
According to reports. Revenue totaling $238 million for the year, a 95% increase compared with 2020 when the total intake had been $122 million, according to figures provided by Comscore. Interesting news for the bourgeoning cinema industry in Saudi Arabia with an ongoing pandemic.

5:10 – Lucien’s one big thing this week is (again?) Saudi golf.
A new podcast from Golf Digest focuses on the history behind Greg Norman’s quest to shake up the sport of golf, backed by the Saudi Arabia Public Investment Fund’s LIV Golf Investments.

In the podcast Local Knowledge: Greg Norman vs. the PGA Tour, host Dan Rapaport provides context to the move by Norman and LIV Golf Investments to provide an alternative to the PGA Tour in which players receive guaranteed money for big, new events around the world. The podcast discusses the history of the World Golf Tour’s failure, and includes comments from Norman himself, talking about why the move is in the best interest of the sport – namely, that a competing league will help grow the game globally and reward players who participate in events that increase interest in the game.

17:13 – Our guest wrote a great piece recently for the AGSIW on Saudi Arabia’s Patriot buys and the Political Aspects of Missile Defense.
Des Roches wrote in the article, Saudi security conditions are “continuing to deteriorate…Over 300 attacks have been launched into the kingdom in the last year alone.”
And the current problem is that the kingdom is running out of missiles to defend itself against attacks from Iran and the Iranian-backed Houthis in Yemen.
The hosts ask Des Roches to provide an update on the U.S.-Saudi security relationship and discuss the topic in-depth.

48:30 – The hosts and David Des Roches talk about the aspirations for a homegrown defense industry in Saudi Arabia.
The Kingdom has long been a big time buyer of foreign military weapons and equipment, especially from the U.S. But under Vision 2030, Saudi Arabia has said it is seeking to localize 50% of its military expenditure.
In 2021, the Kingdom spent 190 billion riyals on the military ($50 billion) – but has decreased its budgeted spending for this year, 2022, to 171 billion riyals ($46 billion).
That may be of course good news for Saudi Arabia, if and when it is achieved, but potentially concerning for U.S. defense contractors.
The United States is by far the largest exporter of weapons globally. The US was responsible for 37% of the exports of major conventional weapons worldwide between 2016-2020.
The hosts tap into Des Roches deep understanding of the space and talk about the homegrown defense industry in Saudi Arabia, and the challenges and opportunities presented therein.
An upcoming defense industry event held in Saudi Arabia will be the first of its kind there – the World Defense Show begins March 6th in Riyadh.

1:08:30 – Yallah! The hosts discuss six other storylines from this week to get you informed headed into the weekend…
•Foreign ministers from four Gulf states of Saudi Arabia, Kuwait, Oman and Bahrain and the secretary-general of the Gulf Cooperation Council (GCC) arrived in Beijing on Monday for a five-day visit in a “positive” push to the negotiations over the China-GCC Free Trade Agreement (FTA) and strengthening China’s economic ties with the bloc.

•Authorities in Saudi Arabia are preparing to launch the 2022 census, which will be the fifth in the Kingdom’s history.

•The 2021 Spanish Super Cup kicks off this week in Riyadh with four sides competing for the title, they include 2020-21 LaLiga winners Atletico Madrid plus league runners-up Real Madrid. The sides from the Spanish capital will be joined by 2020-21 Copa del Rey winners and runners-up in Barça and current Super Cup champions Athletic Club.

•According to a report this week in Reuters, Qatar and Saudi Arabia have halted efforts at the WTO to resolve a dispute over the alleged piracy of content produced by Doha-owned sports and entertainment channel beIN.

•In 2021 Saudi Arabia seized more than 37 tons of illegal drugs as well as 190 million pieces of the highly addictive Captagon pills.  The haul included hashish, heroin, cocaine, qat and other narcotics. In addition, authorities seized more than 234,000 bottles and 4,155 litres of smuggled alcohol.

•The UN Office for the Coordination of Humanitarian Affairs financial tracking services showed that Saudi Arabia ranked sixth among the world’s most generous donors, providing 3% of global humanitarian aid.

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The 966 is a podcast that focuses on all things Saudi Arabia and beyond.