GAMI: Over 50 Local and International Companies Licensed as of Q3
The Investment Highlights Report revealed that the General Authority for Military Industries (GAMI) issued licenses for 54 local and international companies as of Q3 2020, with a total of 70 licenses being issued for various defense Sector activities.
In this quarterly Report published by the Ministry of Investment, GAMI stated that the licenses issued cover six different activities across the following 3 main types: Manufacturing, Services, and Trade.
The Report also revealed that GAMI’s aim to localize more than 50% of the Kingdom’s expenditure on defense by 2030 would furnish tremendous investment opportunities for both Original Equipment Manufacturers (OEMs) and Small & Medium Enterprises (SMEs).
In the opening remarks of GAMI Governor H.E. Ahmad Al-Ohali in the Report, Al-Ohali stated that the Kingdom has become a global investment hub for the defense Sector. He affirmed GAMI’s support of local and international investors provided they share the Authority’s commitment to localization, Transfer of Technology, and job creation. He also emphasized that the investment environment is more attractive than ever before to international investors.
The Report further highlighted a projected contribution of USD 666 million (as a proportion of total exports), with an anticipated volume of USD 10 billion by 2030 and a contribution of USD 4.5 billion to the Kingdom’s GDP also by 2030. This will vitalize the national economy, not to mentioned job creation as indicated in the Report with 100,000 direct and indirect jobs.
Worth noting is that amongst the Kingdom’s strategic objectives, which it hopes to achieve via its localization efforts, is supporting national priorities such as optimizing military readiness and leveraging synergies between the End Users. Ultimately, this will develop a sustainable local military industries Sector; improve transparency and efficiency of spend, thereby attracting a greater influx of investment.