RIYADH: Localization in Saudia Arabia’s defense manufacturing industry has received a boost after the General Authority for Military Industries signed an agreement to help mergers with private firms in the sector.
According to the Saudi Press Agency, GAMI reached a deal with the General Authority for Competition which will also increase the attractiveness of the investment environment, and achieve the maximum benefit from its promising opportunities.
“The memorandum aims to enable fair competition in the military industries sector between companies operating and associated with them in the same field,” said the SPA report.
GAMI Gov. Ahmed bin Abdulaziz Al-Ohali and GAC Chairman Abdulaziz bin Abdullah Al-Zoom signed the MoU.
GAMI recently unveiled a series of investment opportunities in the military industries sector, offering ten prospects with applications in both military and civilian domains.
The announcement was a collaborative effort by GAMI, the Invest in Saudi Arabia initiative, and the Kingdom's Ministry of Investment, as reported by the Saudi Press Agency.
This initiative is a direct result of the Military Industries Enabler initiative, which underscores Saudi Arabia's commitment to enhancing its defense capabilities, diversifying its economy, and providing attractive opportunities for investors.
The portfolio caters to various stakeholders in the defense sector, including manufacturers, service providers, and supporting industries that enhance the nation’s strategic military readiness.
The investment opportunities in phase one cover several subsectors such as batteries, wires, and cables as well as harnesses and fiber optics.
Additionally, they encompass mechanical transmission components and aircraft propellers and components. Other areas of focus are pipes, tubes, and rigid tubing.
Among these opportunities are brakes, axles, tires, and track components, as well as electronic circuit components, pumps, electric motors, and valves.
In a related development, the GAC imposed a SR10 million ($2.66 million) fine on Al-Moknaz Fodder Trading Co. in August for abusing its dominant market position, contributing to the improvement of market performance and consumer and business sector confidence.
As part of its mission to combat illegal monopolistic practices in Saudi Arabia, this move by the authority is a crucial element of its strategy to promote competition-stimulating policies. The ultimate goal is to enhance market performance, instilling confidence among both consumers and businesses in the sector.