Saudi Arabia's General Authority for Military Industries (GAMI) announced that it has granted licenses to three new firms operating in the military industrial sector.
The companies are Intra Defenses Technologies, Defense Enterprises Military Industries and the company for smart trade measurement.
With the new announcement, a total of eight firms have so far been granted licenses with investments worth more than SAR3 billion (USD800 million).
Saudi Arabia continues to encourage cooperation with the private sector to develep military industries, a vital sector that promotes local manufacturers.
Governor of GAMI Ahmed al-Ohali has affirmed the authority’s interest in backing local manufacturers, noting that the new licenses would generate the production of military electronics.
He said GAMI is moving forward with its plans to reinforce the Kingdom’s strategic independence, national security, and its military and security preparedness.
It will also continue to provide incentives to local manufacturers and issue more licenses for military industries to reach a target of localizing 50 percent of total government military spending in the Kingdom.
Ohali continued that GAMI will double efforts to develop industries, research, techniques, and national capabilities, reinforce exports and consolidate the sector through long-term planning for military purchases.
The authority aims to organize the military industrial sector, develop it and monitor its performance by coming up with strategies, policies and regulations and procedures pertaining to issuing licenses.
GAMI also aims to set the standards for military industries, oversee their implementation in participation with relevant bodies and determine suitable locations to establish factories.