Wednesday, 07 June 2023 05:25 GMT

Saudi Arabia Launches Military Industries Enabler Platform to Attract Investment in Defense Industry

(MENAFN) The General Authority for Military Industries (GAMI) in Saudi Arabia has launched the Military Industries Enabler initiative, a new platform that will provide local and international investors with access to opportunities in the Kingdom's defense industry. The platform will offer investors a background of the sector in Saudi Arabia, including policies, procedures, demand, and incentives. With the goal of creating a robust and sustainable defense industry in the country and contributing to the GDP by 2030, the initiative aims to create an attractive investment environment for entities in Saudi Arabia or abroad with plans to venture into the defense industry.

The platform's launch is a significant step for the Kingdom as it seeks to elevate the investment process, integrate with relevant sectors, and provide various inclusive services to target organizations within the sector, as well as individuals and governmental institutions. Investors will be able to access a range of services, including military licenses, enablers, general force planning, and a library of military specifications and standards.

According to Ahmed Al-Ohali, Governor of GAMI, the platform contains all the policies and procedures that will clarify the demand for certain defense products and armaments over the next 10 years, providing investors with a clear understanding of the opportunities available in Saudi Arabia's defense industry. The initiative also includes financial incentives, such as grants and interest-free loans for certain products, as well as regular loans by the Saudi Industrial Development Fund. Additionally, the platform offers zero VAT for local manufacturing, human capital development, training, and scholarships in the Kingdom and abroad.

GAMI has incentivized governmental investment in Saudi Arabia's defense industry through funding programs, guaranteeing export insurance, bolstering education costs, and qualifying human resources. The authority has also removed VAT costs, is supporting small and medium enterprises, and ensuring a government procurement system. Al-Ohali emphasized that Saudi and foreign investors will be treated equally as long as they fulfill their obligations and commitment to the areas.

GAMI is also in the process of establishing a coordination committee for military industries with private and public sectors to enhance communication, exchange knowledge and experience, and contribute to the localization of strategic military industries and technologies. The launch of the Military Industries Enabler platform is expected to attract more investment in Saudi Arabia's defense industry, further solidifying the country's position as a leading player in the global defense industry.


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