GAMI Launches Military Industrial Licensing Program

[28 November 2019]

For the first time in the Kingdom, and with the aim of developing the Defense Sector and opening the doors to investment, GAMI launches its military industrial licensing program. GAMI has begun receiving requests for issuance of licenses to practice certain activities, namely military manufacturing, military services, and trade in military products or services.

The announcement comes within the framework of executing GAMI’s strategy. The strategy aims to localize military industries and achieving the main national priorities of military readiness, promoting interoperability among all security and military authorities with the aim of developing a sustainable local Defense Sector, increasing transparency, as well as achieving efficiency of spend and opening the doors to investment.

GAMI Governor Ahmad Al Ohali asserted that the move will be a major step towards regulating the Sector. Also, it will open the door to foreign and local investment and thereby facilitate their contribution to building the Sector directly, achieving the goal of localizing more than 50% of the Kingdom’s expenditure on Defense, and meeting the needs of the Sector.

The Authority strives for transfer of technology (TOT) and take into consideration the benefits that local companies can hope to enjoy from these manufacturing opportunities. In line with a mechanism that guarantees the growth of all companies in the Sector, promoting the Sector locally and abroad, training and classifying local manufacturers, providing the infrastructure surrounding the Sector and cooperating with the related authorities.

Each of the three types of Licenses is further broken down into six fields: Firearms, Ammunition, Military Explosives, Military Equipment, Military Personal Equipment and Military Electronics.

The Authority also noted that all current entities operating in the Sector as well as those wishing to operate in one of the aforementioned activities must obtain the appropriate licensing for their scope. Licenses shall be issued after fulfilling the specific requirements as mandated by the Higher Commission for Industrial Safety, GAMI stressed.

GAMI will then grant the current entities a one-year grace period to correct their situation and issue the necessary licenses to carry out their activities.

Requests for licenses can be submitted via GAMI’s e-portal on the official website:  Click Here

It is noteworthy to mention that the Authority aims to regulate and develop the Sector and monitor its performance, by setting policies, strategies and regulations and establishing procedures for issuing licenses.

GAMI also sets standards for military industries, supervises their implementation in conjunction with the concerned authorities, determines suitable sites for establishing military factories, sets the necessary relevant standards, as well as establishes control mechanisms for monitoring the Sector.