A heightened awareness of security issues has led Saudi Arabian Government and private sector entities to re-evaluate and upgrade all security at all major sites. A sizeable portion of the country's current fiscal surplus has been allocated to increase the security budgets for all government departments.

High demand for security systems
Imports of security equipment and systems were estimated at $261 million in 2003. The latest terrorist attacks in Saudi Arabia have forced many institutions and companies to re-evaluate their security needs. Excellent potential exists for various equipment and systems across the board, but mainly, for access control, identification equipment, closed circuit television, and scanning equipment.
The market for security equipment in Saudi Arabia is now developing rapidly, with safety concerns fuelling the expansion. Imports for 2004 were estimated at $339.6 M, with a 40 percent increase in 2005. Since 2003 the country has been rocked by a series of terrorist attacks on residential compounds, Saudi Arabian Government locations, and individuals (Saudis and Westerners). There have been numerous gun battles between terrorists and Saudi security forces in various parts of the country, and seizures of a worrying assortment of explosives, weapons and documented plans to attack public and private buildings, installations, residences and individuals.
Throughout Saudi, public and major private organisations continue to assess and upgrade security. Particular attention is paid to Access Control, Identification (ID), Closed Circuit Television (CCTV), Scanning (x-ray, metal and explosives detection), Road-Blockers, and Tyre Killers - sales of these items grew by an estimated 60 percent in 2003, 50 percent in 2004, and a further 25 percent increase in 2005. Current projects providing market growth are: the possibility of providing ID cards for approximately 3 million pilgrims annually; possible fingerprinting of all visitors arriving in the country; Traffic Department (MOI) is implementing a project to install a vehicle identification and traffic management system with cameras, national database, etc.; a project for high-tech border security is under discussion; port security is being upgraded; plans to construct a new oil refinery have been given the go ahead; and safety and security equipment at airports is under review.
American security equipment is holding an estimated 64 percent market share in Saudi Arabia.

Numerous security projects
Every organisation in the country is re-assessing existing security, many are upgrading, and a number of upcoming projects will stimulate the market. A project is being formulated to provide ID cards for the approximately 3 million pilgrims that visit the country annually. National ID cards for Saudi Arabians were introduced with Phase III (the issuance of some 300,000 ID cards) during 2005. A plan to fingerprint all visitors arriving in the country is being discussed. The Traffic Department, MOI, plans to install a vehicle identification system with cameras, CCTV, and central computerised database for monitoring traffic and infringements. The issuance of smart-card drivers' licenses started in 2004. Border security is being implemented. Ports will have security upgrades in line with International Maritime Organization (IMO) regulations. Safety and security equipment at airports is under review. Most government, quasi-government and major private facilities are upgrading existing safety equipment with particular attention paid to Access Control, ID systems, Road-blockers, Tyre Killers, X-ray equipment for metal and/or explosives, CCTV, Metal Detectors and personnel protection items.

Domestic Production
Although estimated at less then one percent of the market, there is an increasing amount of security equipment and devices being assembled or made in Saudi Arabia. These items include CCTV installation equipment, doors for automatic teller machines, emergency exit doors, vault and security doors, strengthened security glass, security and vault locks, gates, barriers and some perimeter fencing items.

A competitive market
The U.S. holds the highest market share with Europe and Asia as the major competitors. There was some backlash against U.S. products caused by anger over the intervention in Iraq and the increasing unrest due to the Palestinian/Israeli conflict, but security was less affected than other sectors. The local currency (Saudi Riyal) is pegged to the dollar and the current strength of the Euro gives US exporters some advantage. Prime users of U.S. equipment are government and major industry. Private sector is more down-market and often heavy users of European and Asian equipment.
Experts in the field have noted different countries tend to hold different segments of the market. i.e. Microwave is almost exclusively American, though the Italians are now entering this area. The Majority of CCTV comes via Europe, though the software programmes managing it are mostly of U.S.origin. Motion detection equipment and fibre sensing is primarily American. Germany and the USA have the majority of scanning equipment, and the French have major contracts with the Royal Saudi Navy and Air Force.

Import is unrestricted
Access to the Saudi Arabian market is unrestricted. There are no trade regulations or impediments to restrict the importation of security equipment. There is no value added tax in Saudi Arabia. The tariff on security equipment is set at 12%, though items imported for some government projects can be exempted from customs dues. The Saudi Arabian Standards Organization (SASO) is currently formulating standards to regulate items imported into the Kingdom. As yet, no SASO certificates are required for security items, though they may be required for some electrical items shortly. Under a programme designated as the International Conformity Certification Program (ICCP), some 66 products have so far been listed as regulated products requiring a Certificate of Conformity before being allowed entry into Saudi Arabia.
Major projects that are driving the market expansion:
• The Ministry of the Interior (MOI) is instituting a project to provide ID Cards for the approximately 3 million pilgrims that visit the country annually.
• An MOI plan to implement fingerprinting for all visitors upon arrival in the country is still under discussion.
• The Traffic Department, MOI, will shortly install a vehicle identification system, initially in Central Province but eventually throughout the country, with cameras, CCTV and a central computerised database for monitoring vehicle registration and traffic infringements.
• The issuance of smart-card driving licenses began in Riyadh February 2004. The programme allows for existing driving licenses to expire before a card is issued.
• The National Information Centre (NIC), (MOI) began Phase II of the issuance of National ID cards for Saudi nationals with 15,000 cards in the Riyadh area, in 2004. Phase III (300,000 cards) was started in 2005.
• Border security measures (MOI) have been under discussion for a number of years, but the current worry over infiltration by undesirables is helping to speed up the decision making process. Security measures being mooted include audio and visual facilities, and a fence on sectors of the Yemen / Saudi border.
• Saudi Aramco, the national oil company, is upgrading access security at all company sites.
• Saudi Arabia is a signatory to the International Maritime Organization (IMO), International Shipping and Ports Security (ISPS) code. IMO required specifications for security at all ports (with particular regard to the safety of outgoing freight), to be submitted to IMO headquarters by July 2004. When implemented, major purchases of X-ray equipment are expected.
• Fire safety at some airports is being upgraded.
• As a result of the 1996 Security Directive, most major industries and utilities have security systems three to six years old. Facilities throughout the country are now reassessing existing systems and it is estimated that up to 70 percent will be upgraded - particularly access control.
• Banking security: the amalgamation of several small banks into one large entity is expected to result in a network of new bank branches. Each must comply with security specifications as set out by the Saudi Arabian Monetary Association (SAMA).
The types of Access Control and ID systems typically used in these applications range from simple and inexpensive to highly sophisticated, with everything in between. i.e. from concrete blocks, a gate, and guards with mirrors for under car checking, to facilities with a full range of mechanical blockers, tyre killers, intrusion detection, x-ray equipment, CCTV, sophisticated ID systems, etc. There is an interest in sniffer dogs - a new trend for the private sector. Much use is made of security guards for checking vehicles, visitors and patrolling (guards are not armed unless they are Saudi military or police).

Reviews of security requirements by the government
The government takes an active part in implementing security measures and identifying problem areas. The Ministry of the Interior (MOI) undertakes the inspection of security procedures and systems at private, as well as government, facilities. These inspections determine the need to either enhance and/or upgrade existing security measures. The Supreme Commission for Industrial Security or SCIS (previously the High Commission of Industrial Security or HCIS), an arm of the MOI, acts as an advisor and provides guidelines to ministries, industry, ports, airports, utility companies, banks, etc. on appropriate security requirements. As a quality control measure SCIS monitors the installation of Intrusion Detection and Assessment Systems (IDAS) both from the standpoint of the system being installed, and the company doing the installing. To this end SCIS published a Safety and Security Directive requiring that:
(a) all government and quasi-government organisations (excluding the military) must submit IDAS designs to SCIS for approval, and
(b) installers of integrated security systems must be on the SCIS list of approved companies.

Best Sales Prospects
The demand for road blockers went up 300 percent over the last year (though non-mechanicals ones are often provided locally), and x-ray (walk-through, baggage and hand held) units up by 100 percent. Closed Circuit Television (CCTV) requirements increased greatly, though it should be noted that when not incorporated into an integrated security system the cameras are often supplied from Asia. Other items in demand include portable metal detectors, explosives detection equipment, fence protector systems, intrusion detection, guard tour equipment, vehicle inspection and monitoring at car parking facilities, tyre killers, and all forms of anti-terrorist equipment. Access Control is a major item, and while there is some interest to tying this to time and attendance monitoring, many Saudis are wary of the idea of having their time monitored.
The use of ID cards is widespread and is the most popular form of Access Control for employees, but card sharing is not unknown. Biometrics are so far used in only the most sophisticated facilities - people are not familiar with the concept and do not fully trust it. Under-vehicle inspection units are comprised of mirrors for the private sector, and camera and car recognition systems for some government and industrial facilities. There is a continuing trend to have an integrated system for Access Control, CCTV and Alarm Management operating on one platform, with Intrusion Detection at sensitive sites. Large organisations can require four or five subsystems integrated together on a single PC based platform. A government directive requires all Integrated Security Systems to function in both Arabic and English and to be dual redundant (i.e. with an identical backup permanently on line).
Finally bullet-proof vests have been in demand for Saudi security forces, and for visitors travelling to Iraq.

Wireless transmission devices
Foreign firms supplying a product with wireless capability, radio or microwave transmission will find it difficult to obtain a frequency allocation. To utilise any equipment requiring the use of a frequency, permission must be obtained first individually, and then collectively, from the Ministry of the Interior, Ministry of Defence, and Ministry of Posts and Telecommunication's frequency allocation department. Past practices of random frequency allocation to different agencies and organisations complicate the process. Suppliers should be aware that while not impossible, this is a time consuming and often frustrating exercise. If the telephone system is to be used, Saudi PTT lines have adequate voice quality, but data quality is marginal. Telephone charges are relatively high.

Distribution/Business Practices
Although it is no longer a requirement for foreign companies to have a Saudi sponsor or local agent/distributor to represent their business, it is advisable for companies to be represented locally.This is particularly so in the security market which is secretive, difficult to enter and excellent contacts a must. Foreign companies undertaking security projects must have a legal presence or foreign investment in the country to be registered with the Ministry of the Interior (MOI). Regulations require all government and quasi-government entities to give priority first to locally manufactured items, and second to items provided through a local supplier. If neither of these options is viable, then companies may look overseas. The only exception is Saudi Aramco, which is authorised to purchase through its offices in Houston, Europe and Japan, and some ministries.
Manufacturers and/or suppliers can either sell through a sole agent, a regional distributor, or sub-agent. Exclusive distributors for the Kingdom are not required, and in some cases foreign companies establish separate distributors in each of the Saudi regions. The commercial agency regulations of Saudi Arabia govern agency and distribution relationships, and such agency agreements should be registered at the local Chamber of Commerce and Industry and with the Saudi Ministry of Commerce.

To be aware of
Vendors interested in supplying the Saudi market should take into consideration the harsh climatic conditions. These can pose major problems to sensitive security items, particularly when used outdoors. Extremes of heat, high humidity in coastal areas, and fine blowing sand can play havoc with equipment. Sand in particular can work its way through minute gaps. An additional difficulty is posed by the 70 percent attrition rate among Saudi employees, making the provision of trained operators hard to maintain.