RIYADH — The General Authority for Military Industries (GAMI) announced the signing of its first Industrial Participation Agreement (IPA) with Raytheon Saudi Arabia to localize a Patriot Deep Maintenance and Refurbishment (DMR) System contract for the Royal Saudi Air Defense Forces.

The agreement is the first major GAMI endeavor to achieve its main goal of localizing 50 percent of the Kingdom's spending on military equipment and services and comes in line with the overarching goals of the Kingdom's Vision 2030, which envisages the development of a robust and self-sufficient military and security sector through driving investment in local content and expanding opportunities for qualified national cadres.

Eng. Ahmed Al-Ohali, governor of GAMI, confirmed that the signing of this agreement comes in light of the authority's endeavor to develop, promote, and support local military industries, research and technology sectors.

Al-Ohali also stressed that the authority has worked on restructuring and improving the military offset program into an industrial participation program, which aims to invest and develop existing local capacities in addition to building new capabilities in the targeted industrial fields.

The main objectives of the industrial participation program revolve around expanding the local military industries base in the value-added sectors, working on providing a network of services and technical support for the military industries, stimulating direct investment and strategic partnerships with international companies, facilitating the transfer of technology as well as knowledge, and promoting research and development, in addition to the development of qualified national talent capable of working in this specialized industry.

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

For over 50 years, Raytheon has supported the critical defense needs of the Kingdom. This agreement builds on that partnership and ushers in a new era that will support Saudi Arabia’s focus to create a robust, diversified industrial base in the Kingdom.

GAMI focuses on localizing the industry and achieving national priorities, such as improving military readiness, enhancing strategic independence, boosting joint cooperation between all security and military agencies, developing a sustainable local military industries sector, and increasing transparency and efficiency in military spending. — SG