Saudi Military Industries…Ambitious Steps towards Sustainable Indigenization

As affirmed by the Kingdom Vision 2030 via the various economic and investment activity, Saudi Military Industries is one of the most significant ambitious plans targeted at localisation. We may say that the investment field in the military industries sector is promising and ambitious, indicating sustainability and economic building with a promising future view that bodes well and giving according to essential strategic pillars.

Following the issuance of the High Resolution by the Honourable Council of Ministers in August 2017 to establish the General Authority for Military Industries (GAMI), development paths for this sector were launched in order to strengthen and localise the capabilities of the national military industrialisation in order for this Authority to be an important tributary to the Saudi economy.

Such authority is in charge of the Kingdom military industries sector laws, regulation, development, and performance control.

The GAMI has launched a project designed to empower investors.

This project aims to assist Saudi Arabia in its efforts to localise more than half of government spending on military equipment and services by 2030, primarily through supply chains in the priority military industries sector, estimated to have 74 investment opportunities across six defence and security areas.

This will help to enable investment, industrial localisation, expertise exchange, and connecting those chances with contemporary technology elements, as well as connecting local firms with international corporations, resulting in the creation of over forty thousand job opportunities.

The military industries sector is paid an ongoing attention and assistance from the Kingdom wise leadership, in order to conform to the highest quality and efficiency requirements.

GAMI has devised a clear and detailed strategy to enable local manufacturers to contribute to the achievement of sector goals.

The authority also established (according to its website) regulatory frameworks for investment in the sector that do not include any restrictions on foreign investors wishing to enter the Kingdom military industries market as long as he is a partner in the process of indigenization, employment, and technology transfer.

(GAMI) welcomes all local and international investors to contribute and collaborate effectively. The investment environment in this sector is appealing and fertile for international investors, taking advantage of the Kingdom economic power for being at the heart of international supply chains, particularly due to its strategic geographical location that connects three continents, making it a promising investment destination.

It also revealed a 41 percent growth in the number of licensed businesses, in the Kingdom military industries sector, through the end of the first half of this year.

The total number of licensed firms is as many as 99, including local, foreign, and mixed enterprises.

Licensed firms tally is increasing, with local companies accounting for 85 percent and foreign and mixed enterprises accounting for 15 percent. Furthermore, 55 percent of licenses were given to firms in the sector of military industries, followed by the field of military services (24 percent), and the field of product supply at (21 percent).

(GAMI) recently announced the signing of an agreement to localise and develop capabilities between the Middle East Propulsion Company (MEPC) and the US-based Honeywell, with the goal of localising the repair, maintenance, and overhaul capabilities of (AGT1500) engines.

By utilising and expanding local capabilities, this will help to enhancing the overall system readiness, increasing the responsiveness of field service and technical support, and providing highly skilled job opportunities for Saudi competencies.

To sum up as an economic power that continues to diversify its economic movement, the Kingdom has many investment possibilities accessible in many areas.

This movement centred on indigenization and sustainability within the objectives of the Kingdom Vision 2030, in light of the Kingdom potentials and human capabilities, collaborating in continuous integration not only in this sector but also across so many others.