Organizing Military Industrial Activities in the Kingdom of Saudi Arabia

According to The International Institute for Strategic Studies, the Kingdom of Saudi Arabia spent more on defense in 2019 than any other country in the world except the United States and China. Pursuant to the Kingdom's strategic plan to reduce the Kingdom's dependence on oil, diversify its economy, and develop public service sectors ("Vision2030"), the Kingdom is working hard to develop a domestic defense manufacturing and services industry so that, by 2030, 50% of the Kingdom's spending on military equipment will be spent in the Kingdom. But whether a defense contractor comes to the Kingdom to offer its products and services from offshore or to establish a subsidiary and exploit the advantages offered by Vision2030, it is important for foreign defense contractors to be aware of recent regulations issued by the Saudi Arabian General Authority for Military Industries ("GAMI").

GAMI has issued the Regulations on Organizing Military Industrial Activities in the Kingdom of Saudi Arabia ("Regulations"). The Regulations govern the manufacturing, servicing, and trading in the Kingdom of military explosives, firearms, ammunition, military equipment, individual military equipment, and military electronics ("Military Equipment"). 

This Jones Day White Paper offers an overview of the recent regulations issued by GAMI.

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