70 companies invest $6.4 billion in military industry sector in Saudi

Not less than 70 local and international companies have invested an estimated volume of SR24 billion ($6.4 billion) in Saudi Arabia’s military industry

While disclosing this on Wednesday February 24, 2021, the General Authority for Military Industries (GAMI), which is overseeing the Saudi pavilion at IDEX 2021, stated that it has issued licenses for 70 local and international companies until the end of 2020.

The total number of these companies’ licenses reached 114 licenses that would enable them to engage in several different activities in the military industry sector.

The percentage of manufacturing licenses reached 57% and the military service licenses reached 25%, while the percentage of supply licenses reached 18 percent.

The licensed national companies in this sector represent 81%, while the percentage of foreign and mixed companies reached 19% of the total number of companies.

The authority stated that it aims to support investors and facilitate their entry into the Saudi military and security industries market, making them a part of its strategy that contributes to the Saudi Vision 2030 objective of localizing over 50 % of the military equipment spending by 2030.

GAMI’s online licensing portal; licensing.gami.gov.sa allows investors to issue permits and military licenses that include six different activities in the sector including military equipment, military services, military electronics, in addition to military electronic services, ammunition, and manufacturing explosives.

It is worth noting that GAMI is the responsible authority for regulating, enabling, and licensing military industries in Saudi Arabia. It is responsible for developing a sustainable sector for defense and security industries in Saudi Arabia that enhances its strategic independence in this field, strengthens the foundations of its national security, and supports its economic and social growth.

Separately, the third day of the International Defense Exhibition (IDEX) and the Naval Defense Exhibition (NAVDEX) 2021 has seen the UAE Armed Forces sign 12 new deals, worth AED 5.589 billion ($1.4 billion), with local and international companies.

The cumulative value of deals signed at IDEX and NAVDEX 2021 is now AED 17.913 billion ($4.7 billion).

“The total amount of deals signed with international parties amounted to AED 1.164 billion ($310 million), which is 21% of the total deal value for today, and AED 4.425 billion ($1.1 billion) of deals were agreed with UAE companies, which is 79% of today’s total deal value,” said staff Brigadier-General Mohammed Al Hassani.

“Six contracts were awarded to international companies, and six agreements have been implemented with UAE-based companies. 12 deals were signed in total,” added the official spokesperson of the IDEX and NAVDEX exhibitions.