SAUDI Arabia DEFENSE PROCUREMENT

In 2017 the Kingdom formed the Saudi Arabian Military Industries (SAMI) Corporation in order to establish joint ventures with OEMs and to cooperate with domestic companies. 

SAMI has four manufacturing units:
1) Air Systems (maintenance and repair of fixed-wing aircraft, manufacturing and repair of unmanned air vehicles); 
2) Land Systems (manufacturing and repair of military vehicles); 
3) Weapons & Missiles (ammunition) and 
4) Defense Electronics (radars and sensors,  communication systems and electronic warfare).

In 2017 the Saudi cabinet also set up a regulator of the military industry - the General Authority for Military Industries. The Authority has a Board of Directors chaired by the Deputy Prime Minister and includes the Minister of Energy, Industry and Mineral Resources, the Minister of Finance, the Minister of Investment and the Chairman of the Board of Directors of Saudi Military Industries Company. GAMI also oversees localization and offset requirements. 

GAMI’s online licensing portal offers a streamlined process to acquire licenses under three categories: military industries, military services and supply of military products or services.  GAMI Licensing Portal

Saudi Arabia is now requiring not just a greater local workshare, but longer-term local defense-capacity building as well. The new procurement rules will benefit those U.S. firms that are able to offer a “win-win” proposals that satisfies various Saudi constituencies in the government, Shura Council, and the private sector.