Doing Business in Saudi Arabia - International Franchise Association

Safety & Security – SEC
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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.
No reliable, published statistics are available on the SEC sector in Saudi Arabia.
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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.