The number of companies licensed by Saudi Arabia’s General Authority for Military Industries (GAMI) increased by 41% and reached 99 by the end of H1 2021. According to the inaugural edition of the Saudi Military Industries Highlights report, the Kingdom’s flourishing defense industry continued to host new companies willing to take advantage of the incredible opportunities that Saudi Arabia’s military industries sector have to offer.
Local companies made up (85%) of the total number of companies receiving GAMI licenses, exhibiting decisive progress in the Kingdom’s drive for localization in military industries. The remaining (15%) of GAMI licenses were awarded to mixed ownership and fully foreign companies. Meanwhile, 60% of the new companies receiving licenses were those operating in the field of military manufacturing, followed by military services (24%) and trading of military articles and services (16%).
The Saudi Military Industries Highlights report highlighted that the efforts to enhance transparency, ease the permit and licensing process, and allowing 100% foreign ownership in the sector, have started to yield results as local and international investors are becoming more aware of the enormous opportunities that the Kingdom’s military industries sector offer.
Saudi Arabia’s strategic geographical location at the heart of three continents and its status as a global economic powerhouse make the Kingdom an ideal hub for the defense industry investments. The Kingdom is preparing to inaugurate the first World Defense Show between March 6th and March 9th, 2022 in Riyadh, bringing together the world’s leading professionals, experts and policy makers in defense industry.