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Industrial License

GAMI’s online Licensing Portal offers a streamlined process to acquire the licenses required for exercising military industrial activities in the Kingdom under three categories: military manufacturing, military services, and trading of military equipment or services. The Portal provides a vast amount of detailed information on the regulations for organizing military industries in the Kingdom. It also offers investment advice to all new companies wishing to invest in the Kingdom’s promising defense and security sector.

Visit the Licensing Portal

Why was the GAMI Licensing Portal launched in the Kingdom?

The Licensing Portal was launched to facilitate matchmaking between Suppliers and End Users and/or between Local Suppliers and Original Equipment Manufacturers (OEMs), wherein a company that is licensed is given precedence.

 

What purpose does a GAMI license serve?

The purpose that a GAMI license serves is for GAMI to be able to familiarize itself with the company’s products, services, capabilities, areas of expertise, etc…and all of this ultimately empowers the company to be awarded more projects and further empowers international investors to yield greater returns through partnering with local suppliers that are licensed. It is also a regulatory tool that assures conformity to industry standards for safety, compliance, and quality.

 

How can an investor get a license to practice military industries activities in the Kingdom?

Investors can now easily log in the Licensing Portal launched by GAMI and access the following main licensing categories provided by GAMI: Military Manufacturing, Military Services, and Trading of Military Equipment or Services. Investors can apply for one or more of these categories (as per the targeted investment activities) and will be asked to provide certain requirements before receiving the license. GAMI also provides investment advisory services for all new companies wishing to invest in the sector.

 

What are the “Regulations on Organizing Military Industrial Activities” in the Kingdom?

The “Regulations on Organizing Military Industrial Activities in the Kingdom” lay out all the procedural checks in the sector and set out the provisions regulating it.

 

Is it permitted to conduct military industry activities outside industrial cities?

It is not permitted to practice military industry activities or other activities that are subject to the military industry regulations outside industrial cities. However, this provision does not include other military bases and installations.

 

Does GAMI issue manufacturing licenses for small arms?

As per the strategy adopted in the Kingdom, GAMI issues licenses under the following three main categories: Military Manufacturing, Military Services, and Trading of Military Equipment or Services. You can log in the Licensing Portal and access more information on the regulations of the industry in the Kingdom.

 

How can I inquire about a license application?

You can visit the GAMI Licensing Portal at:

https://licensing.gami.gov.sa/GAMILicensePortal_Investor/Login_GAMI.aspx

 

Can the license be sold or transferred to another company?

Pursuant to the laws and policies regulating the provision of industrial licenses by Saudi entities, in general, and the provision of military industrial licenses by GAMI, in particular, selling or transferring a GAMI license is prohibited.

 

Is a licensee overseen by GAMI?

In its effort to build a sustainable local defense and security sector that significantly contributes to the national economy, GAMI supports and empowers local manufacturers by helping develop their capabilities at the local and international stage. Specifically, GAMI is keen to support prominent local companies and strengthen their position in the international market. To ensure that this goal is achieved, GAMI employs mechanisms including monitoring the sector’s performance, following up the performance of production and storage lines, testing of military materials and products and accessing various documents, data and records.

 

Can a foreign investor get a license?

A foreign investor has the right to apply for a GAMI license after fulfilling all requirements and meeting all conditions that entitle them to do so. Further information can be found in the Investor Guide developed by GAMI and accessible on the website.

 

Will any additional financial obligations arise from adding activities to the Establishment Permit? Can activities be added to the Establishment Permit before the start of operations?

According to the investment strategy of the military industries sector and the Investor Guide, no new activities can be added to an existing license or permit. A person/company wishing to add any new activities should apply for a new Establishment Permit and take the necessary procedures. This also applies to those wishing to add new activities to an Establishment Permit before the start of the company’s operations.

 

Can the license be amended?

GAMI allows to amend the license or permit within the limits of the relevant commercial activities associated with the license. This amendment shall include commercial activities or scope of the license itself.
 

Can the Establishment Permit be amended?

Given the importance of Establishment Permits as the basis to build up the capabilities of local military industries, the permit holder who wishes to amend an existing permit should submit a new Establishment Permit application for the targeted activities.

 

Is it necessary to obtain Establishment Permits for all licenses?

 

The Establishment Permit is only required if the applicant wishes to start a commercial activity under the categories of military manufacturing or the provision of military services. An Establishment Permit is not required of the trading of military equipment and services.

 

What is the purpose of obtaining the Establishment Permit or License?

The Establishment Permit allows the applicant to proceed with the procedures related to the facility's location and obtain the necessary approvals from the relevant authorities. An Establishment Permit will also pave the way for issuing the military manufacturing license or military service license. Lastly, an EP serves as a transitional permit while the requisite background investigations and security checks are performed and cleared.

 

How long is an Establishment Permit valid? What is the validity period of other licenses issued by GAMI?

Establishment Permits are valid for two years only, while other permits or licenses issued by GAMI are valid for three years and are subject to renewal.

 

The term “Controllers” is mentioned in the Investor Guide. What is meant by “Controllers”?

“Controller” refers to the founder, owner, partner, or member of board of directors. It also includes CEO and anyone who routinely reports to him/her.

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