The General Authority for Military Industries (GAMI) granted licenses to 54 international and local companies in the military industries field since the launch of the licensing e-portal in September 2019 until Q3 2020.
For the 54 companies, a total of 70 licenses were issued by GAMI across six different activities, said the Investment Highlights Fall 2020 report.
Ahmed Al-Ohali, governor of GAMI, revealed that the Kingdom has become a promising international destination for investment in defense industries.
GAMI backs any local or international investor as long as they become a partner to the Authority in the journey of Saudization and recruitment, he stressed.
In the Ministry’s report on quarterly investment updates, he said that investing in the military industries sector has become attractive for international investors.
GAMI seeks to achieve an ambitious 50% localization rate of the Kingdom’s military expenditure by 2030, said the Ohali.
The military industries sector will contribute to around USD666 million in overall exports with an anticipated investment of USD10 billion by 2030. It would also add USD4.5 billion to the GDP by the same year, creating some 100,000 job opportunities.
Military industries could positively impact the GDP in the Kingdom, besides the balance of payments.
“Military acquisition is the major enabler for industry and technology localization,” Ohali.” Through military acquisition, we work with key stakeholders in the defense and security sectors to create greater cost efficiencies, promote localization of products, and ensure best practices.”
“GAMI, with the support of end-users, has taken a leading role in ensuring that industrywide best acquisition practices are standardized. We operate on a national level, working closely with local defense entities, industry, and end-users to ensure efficient and transparent spending. We also engage key global stakeholders, namely foreign original equipment manufacturers (OEMs) and foreign governments, to enable investment opportunities,” he added.
