GAMI Issues Military Industrial Licenses to 3 Companies [08 January 2020]

The General Authority for Military Industries (GAMI) announced that it has issued licenses to 3 companies. This move is in line with the plan to localize military spending in the Kingdom of Saudi Arabia and its support for local manufacturers.

Along with Smart Measure Company (SMC), INTRA Defence Technologies Ltd and Defense Enterprise For Military industries, there will be a total of 8 licensed companies by the Authority with an investment volume of more than 3 billion Saudi Riyals.

This step comes within the framework of the licensing mechanism developed by the Authority, the military industries licensing Portal was created to receive requests for issuance of licenses in the areas of military manufacturing, military services, and trading military products or services.

H.E. GAMI Governor Ahmad al Ohali has affirmed the Authority’s interest in supporting local manufacturers, noting that the new licenses would generate the manufacture of military electronics, which include anti drone systems and military equipment manufacturers (such as drones), and military personal equipment, noting the importance of this step in satisfying the needs of the Defense Sector.

H.E. indicated that the Authority is continuing to pursue its plans to reinforce the Kingdom’s strategic autonomy, national security, and its military and security preparedness.

It will also continue to provide incentives to local manufacturers and issue licenses for military industries to reach a target of localizing more than 50% of the Kingdom’s expenditure on military equipment and services, and it will also double the Authority's efforts to develop industries, research, technologies and national capacities, promote exports, and empower the sector through long-term planning for military procurement.

The Authority aims to regulate the Sector, develop it and monitor its performance by devising strategies, regulations, policies and procedures pertaining to issuing licenses.

The Authority also aims to set standards for the Sector, oversee its implementation in participation with relevant bodies and determine suitable locations to establish factories. Lastly, it sets the necessary standards for it, as well as setting mechanisms to monitor the Sector and follow up on its implementation.