GAMI Signs Deal with MODON to Promote Investments in Saudi Defense Sector

[28 November 2020]

The General Authority for Military Industries and The Saudi Authority for Industrial Cities and Technology Zones (MODON) announced the launch of a strategic cooperation between the two sides aimed at encouraging the localization of Defense Industries in the Kingdom, and supporting the localization of more than 50% of expenditure on Defense through Vision 2030, and acknowledging it as an important input for economic development, increasing its contribution to local content, and opening job opportunities for Saudi cadres.

Through such cooperation, the two parties seek to guide licensed investors to targeted fields in the industrial cities affiliated with MODON, which in turn will provide incentives to this Sector’s investors.

Also, the two sides will work on providing industrial clusters for the targeted military sectors in the industrial cities and providing options for investor to support the establishment and empowerment of the project and ensuring its expansion, sustainability and development.

H.E. GAMI Governor Ahmad Al Ohali affirmed; Cooperation with MODON comes in line with GAMI’s efforts to make the Sector one of the main contributors to the national economy.

“This strategic cooperation will support GAMI’s endeavor to empower local and international manufacturers in this promising Sector by creating the suitable investment environment for the industrial capacity-building desired by the Kingdom,” he said.

H.E. Director General of MODON Dr. Khalid Al-Salem supported this view by stating that cooperation with GAMI aims at increasing the Sector’s contribution to the Gross Domestic Product (GDP), as an important part of the Kingdom’s Vision 2030, and contributing to National Industrial Development and Logistics Program (NIDLP) by enabling the Defense Sector.

Since its inception in 2001, MODON has been interested in the development of integrated industrial land, as it now has 35 existing and under-development industrial cities in various regions of the Kingdom. It also has private industrial complexes. So far, the total area under MODON’s control exceeds 198.8 million square meters, with 3,474 facilities.

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