Saudi Arabia's defense industry today
Saudi Arabia is one of the largest defense spenders in the world, and Vision 2030 set the goal of localising more than 50% of government military spending by 2030. That goal changes how foreign defense companies are expected to work in the Kingdom: selling from abroad is no longer enough, and local manufacturing, local suppliers, technology transfer and Saudi jobs carry real weight.
The General Authority for Military Industries (GAMI) regulates and develops the sector. It licenses companies that manufacture military products or provide military services, sets localisation policy and runs programmes that connect foreign companies with Saudi industry. State-owned Saudi Arabian Military Industries (SAMI) and a growing base of private Saudi manufacturers and suppliers are the companies most foreign firms meet on the ground.
GAMI licensing in practice
A company that wants to manufacture military products, provide military services or carry out related activities in the Kingdom generally needs a GAMI license for that activity, in addition to its company setup. The license category, the documents required and the review depend on the activity, the ownership structure and the products. Requirements are updated by GAMI, so each project starts with a check of the current rules.
- Company setup first: a foreign-owned company usually needs a MISA registration and a commercial registration that match the planned activity
- Activity-specific license: the GAMI license is tied to the products and services you will actually provide
- Industrial license: local production also requires an industrial license and an approved site, as for any factory
- Security and ownership review: expect questions about owners, management, technology and end users
Localisation and industrial participation
Localisation is the centre of the sector's policy. Large defense contracts may carry industrial participation obligations, meaning commitments to invest, manufacture, source or transfer technology in the Kingdom. Local content rules also apply in government procurement. A company that plans its Saudi footprint early, with a realistic local manufacturing and supplier plan, is in a stronger position than one that treats localisation as paperwork.
We help you build that plan step by step: which parts or services can be produced locally, which Saudi suppliers exist, what training is needed and how the plan connects to your industrial license and local content certificate.
Choosing a structure and a partner
Foreign defense companies use different structures: a wholly owned Saudi company, a branch, or a joint venture with a Saudi partner. The right choice depends on the activity, the licensing requirements, the role of the partner and how much control you need over technology and quality. A partner should bring real industrial capability or market knowledge, not only a name. We help you define what you need from a partner, then shortlist and introduce companies that fit.
Export control and sanctions
Saudi licensing does not replace the rules of your home country. Controlled goods, technology and technical data usually need export approvals from your own authorities, often with end-user documentation. International sanctions may also restrict who can be involved and how payments move. We screen every client and its owners before we start, keep records of that screening, and stop work where the law does not allow it. Your own export control and legal advisers remain essential.
Exhibitions and first contacts
The World Defense Show in Riyadh brings together Saudi authorities, Saudi industry and international companies, and is often where serious conversations start. We help you prepare: which authorities and companies to meet, what to bring, and how to follow up in a way that respects procurement rules. See our business trips and exhibitions service.
How RDO helps
RDO is a Saudi advisory and business services firm. In the defense sector we act as a structured, compliant guide: we explain the landscape, plan the entry, prepare licensing and company files, and connect you with Saudi partners. Every engagement starts with a confidential review and compliance screening, and every decision on licenses and contracts rests with the authorities.
