General Authority for Military Industries Signs First Industrial Participation Agreement with Raytheon Saudi Arabia [08 January 2020]

An agreement to localize the Deep Maintenance and Refurbishment (DMR) of the Patriot air Defense System has been signed.

The General Authority for Military Industries (GAMI) has announced the signing of its first Industrial Participation Agreement (IPA) with Raytheon Saudi Arabia to localize DMR of the Patriot air Defense System.

This agreement comes within the framework of GAMI’s endeavors to achieve the goals of Vision2030 in developing a robust and self-sufficient military and security sector through driving investment in local content and expanding opportunities for qualified national cadres. All of this in pursuit of the Authority achieving its main goal, which is to localize more than 50% of expenditure on Defense.

H.E. GAMI Governor Ahmad Al Ohali affirmed that the signing of this agreement comes in line with the Authority's plans to develop, promote, and support local military industries, research and technology sectors. H.E. also emphasized that the Authority has worked on restructuring and improving the Economic Offset Program (EOP) into the Industrial Participation Program (IPP), which aims to invest and develop existing local capacities as well as building new capabilities in the targeted industrial segments.

The main objectives of the IPP revolve around expanding the local military industries in the value-added sectors, working on providing a network of services and military industries’ technical support, stimulating direct investment and strategic partnerships with the sector’s international companies, facilitating the transfer of technology (TOT) as well as knowledge, and promoting research and development, in addition to the development of qualified national talent capable of working in these specialized industries.

The agreement will contribute to building capacities in the targeted military industries, benefiting from existing local capabilities, transferring knowledge related to maintenance and training Saudis, as well as expanding the scope of work on the development of joint projects between the GAMI and Raytheon Saudi Arabia.

The relationship of the Kingdom’s Defense Sector and Raytheon extends for more than 50 years, and this agreement marks the beginning of a new era focusing on creating a robust and diversified industrial base in the Kingdom.

It is noteworthy that GAMI focuses on localizing the Sector, consolidating the important role of the Authority, achieving the national priorities of raising military readiness, enhancing strategic autonomy, boosting joint cooperation between all military and security bodies, developing a sustainable local military industries sector, and increasing transparency and efficiency in military spending.

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