BERLIN/RIYADH(Own report) – Germany is helping Saudi Arabia establish an independent arms industry. Via its South African subsidiary, the Rheinmetall Group has already set up an ammunition factory in Riyadh, in which Saudi Arabia can produce artillery shells and bombs for its Air Force. Next month, a Rheinmetall manager will be appointed chair of the new arms producer – SAMI (Saudi Arabian Military Industries). Saudi Arabia, which competes with Russia for the third place of countries with the highest military budgets, is seeking to buy half its weaponry eventually from domestic companies. SAMI should thus become one of the 25 most important arms manufacturers in the world – with close contacts to US arms manufacturing giants and the EU’s military industry. This project is being launched at a time when Riyadh is on an extremely aggressive course, to win a power struggle with Iran for predominance in the Middle East.