(MENAFN- Saudi Press Agency) Riyadh, March 20, 2023, SPA -- The General Authority for Military Industries (GAMI) launched several enablers in the military industries sector in the Kingdom of Saudi Arabia today. The ceremony was attended by ministers, senior officials, and CEOs of local and international companies investing in the military and defense industries in the Kingdom, including the H.E. Minister of Investment, Khalid Al-Falih; H.E. the Minister of Industry and Mineral Resources, Bandar Alkhorayef, and H.E. the Governor of the General Authority for Defense Development, Dr. Faleh Al-Suleiman.
The enablers aim to create an attractive and stimulating investment environment for local and international investors in the military industries sector by establishing a national digital platform that integrates all parties related to this sector in the Kingdom. It will enable investors to access investment opportunities and promote governmental integration between relevant authorities.
In his speech, H.E. GAMI Governor Ahmad Al-Ohali, expressed his appreciation for the support enjoyed by the military industries sector in the Kingdom from the government led by its astute leadership the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, and Prime Minister, who is also Chairman of the Board of Directors of GAMI, to embody the ambitious vision towards strengthening the strategic autonomy of the Kingdom, and to localize more than 50% of government spending on defense equipment and services by the year 2030, through the development of military industries and technologies, the development of national competencies, and the creation of job opportunities for Saudi's youth, and thereby increase the sector's contribution to the national economy.
H.E. pointed out that GAMI has focused on enhancing and developing the military procurement mechanism as one of its primary roles since its inception, noting that by working with End Users to optimize the benefits from the Kingdom's military spending through unifying purchasing power, the Kingdom will gain negotiating power, resulting in savings, localization opportunities, local industry development, and technology transfer.
H.E. also added that establishing the 'Military Industries Committee' will significantly contribute to supporting the localization of strategic and national military industries and technologies while enhancing communication and knowledge sharing between GAMI and relevant entities.
Moreover, Al-Ohali emphasized that GAMI has achieved significant results over the past few years by extracting added value from supplier contracts. This has resulted in the signing of two framework agreements with a total value of over SAR 1 billion. Worth noting is that GAMI is also working towards launching three other framework agreements comprising various military and defense products and capabilities. These efforts are aimed at incentivizing and empowering local manufacturers to contribute to building national industrial capabilities, which will in turn support the development of the sector's supply chain program and local manufacturing.
During the event, a ministerial discussion session titled: 'The role of national ecosystem in incentivizing investment in the defense industries sector' was held. The session touched upon the nature of investment in the military industries sector and how it differs from other industrial sectors. It also highlighted the role of the national investment strategy in supporting efforts at developing the military industries sector and attracting investment. Additionally, the discussion focused on the Kingdom's strong economy, financial policy, and deep financial markets within the G20 economies. It also highlighted the impact of strategic partnerships with major international companies on the investment environment in the defense industries sector. Lastly, the enablers and incentives that will have the most significant positive impact in enabling the sector to achieve its objectives, and contribute to the Kingdom's GDP, were discussed.
Several MoUs and strategic partnerships were announced on the sidelines of the launch ceremony supporting the sector's plans and achieving its national goals. These agreements aim to raise entities' participation levels in developing the sector and supporting its localization journey. Additionally, they aim to drive the policy of economic diversification and increase the contribution of the military-industrial sector to the GDP while expanding the base of industries by increasing the volume of industrial production. Several government agencies, including the Small and Medium Enterprises General Authority (Monsha'at), the Saudi Authority for Industrial Cities and Technology Zones (Modon), the Royal Commission for Jubail and Yanbu (RCJY), the Saudi Industrial Development Fund (SIDF), and the Small and Medium Enterprises Bank, were parties to these agreements.
21:33 LOCAL TIME 18:33 GMT
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