Saudi Arabia's GAMI activities in the Kingdom
Saudi Arabia’s defense market is regulated and licensed by the General Authority for Military Industries (GAMI).
The General Authority for Military Industries (GAMI) was established in accordance with the resolution of the Saudi Council of Ministers in August 2017. It embodies Saudi Arabian Government’s (SAG) aspiration to develop and localize its national military manufacturing capabilities and to turn it into an important pillar of the Saudi economy by employing Saudi youth and increasing the sector’s contribution to the national economy.
GAMI has broad powers over research and development (R&D) and procurement. It oversees localization and offset requirements, providing a key entry point for western defense firms seeking to navigate the kingdom’s defense sector. GAMI is the regulator, enabler, licensor for the military industry in Saudi Arabia.
The SAG has ambitious plans to develop its defense industry through its Vision 2030 Plan and has given GAMI a mandate to localize 50% of Saudi Arabia’s military spending over the next decade.
GAMI appears to have recently put the personnel and management in place to move on long stalled agreements and to prioritize the Kingdom’s new industrialization policies. For example, it revised the guidelines for the Ministry of Defense’s acquisitions such that foreign contractors must commit to a localization agreement for at least 50 percent of the value of the contract, and restructured its Economic Offset Program to enhance the participation of international original equipment manufacturer. U.S. companies that can localize their organization, workforce, and processes fastest will benefit from the changes underway in Saudi Arabia.