Sector Setup

Set Up a Defense & Security Company in Saudi Arabia

GAMI (General Authority for Military Industries) targets 50% defense-spend localisation. Foreign defense primes and suppliers enter via JV with SAMI or 100%-MISA + GAMI licence. Aerospace, land systems, naval, electronics and ammunition all in scope.

How do I set up a defense & security company in Saudi Arabia? 100%-foreign-owned LLC under MISA + GAMI Military Industry licence (or SAMI JV). Capital SAR 5M+ (varies materially by category). Year-one cost USD 50,000 – USD 200,000+ year-one. Timeline 20–40 weeks (GAMI licensing is the long pole). Sector regulators: MISA, GAMI, SAMI for JVs, Ministry of Defense.

Defense & Security sector entry in Saudi Arabia

GAMI (General Authority for Military Industries) targets 50% defense-spend localisation. Foreign defense primes and suppliers enter via JV with SAMI or 100%-MISA + GAMI licence. Aerospace, land systems, naval, electronics and ammunition all in scope.

Recommended structure: 100%-foreign-owned LLC under MISA + GAMI Military Industry licence (or SAMI JV). Capital requirement: SAR 5M+ (varies materially by category). Saudization band needed: Premium required.

GAMI's IKVA-equivalent localisation programme is mandatory. Tamra supports both pure 100%-MISA and SAMI-JV routes. Tamra runs end-to-end defense & security-sector setups — MISA, sector licensing, CR, banking, GR, ongoing compliance and workforce administration.

Key facts

SectorDefense & Security
Recommended entity100%-foreign-owned LLC under MISA + GAMI Military Industry licence (or SAMI JV)
Capital requirementSAR 5M+ (varies materially by category)
Year-one costUSD 50,000 – USD 200,000+ year-one
Timeline20–40 weeks (GAMI licensing is the long pole)
Saudization bandPremium required
Sector regulatorsMISA, GAMI, SAMI for JVs, Ministry of Defense

Defense & Security setup process

20–40 weeks (GAMI licensing is the long pole)

  1. Sector licensing pre-check. Verify the foreign parent's track record satisfies MISA, GAMI, SAMI for JVs, Ministry of Defense requirements before MISA submission.
  2. MISA application. Submit MISA application under the appropriate sector activity code, with full attested parent-company documentation.
  3. Sector regulator submission. Submit sector-specific licence applications in parallel with CR. MISA Industrial licence drives the critical path.
  4. Commercial Registration & Chamber. MoC issues the CR; Chamber of Commerce subscription is activated.
  5. Operational portals. Activate Qiwa, Muqeem, GOSI, ZATCA, Mudad and any sector-specific portals.
  6. Banking & GM Iqama. Open Saudi corporate bank account; issue GM Iqama for the appointed manager.
  7. First hire / first invoice. Defense & Security entity becomes operational. Tamra continues as the managed-services partner for payroll, GR and Iqama.

Mandatory sector licences

  • MISA Industrial licence
  • GAMI Military Industry licence
  • End-user / export approvals

Best-fit subsectors

  • Aerospace components
  • Land systems
  • Naval & coastal
  • Defense electronics
  • Munitions & MRO

Common rejection reasons

  • GAMI licence requires localisation commitments not met
  • End-user / export approvals gap
  • SAMI JV partner alignment not secured

Frequently asked questions

What's the cheapest way to enter Saudi Arabia's defense & security market?

If you are testing the market, an EOR (hiring through Tamra's existing licence) is the lowest-commitment entry. For long-term presence, a 100%-foreign-owned LLC under MISA + GAMI Military Industry licence (or SAMI JV) is the standard. Tamra runs both routes.

What is the capital requirement for a defense & security company?

SAR 5M+ (varies materially by category)

How long does defense & security setup take?

20–40 weeks (GAMI licensing is the long pole)

What are the sector-specific licences required?

MISA Industrial licence; GAMI Military Industry licence; End-user / export approvals. Tamra coordinates these in parallel with MISA + CR.

Can Tamra act as the Saudi presence before our entity is ready?

Yes. Tamra holds an EOR licence and can sponsor your first 1–10 hires immediately, then transition them onto your entity once it is operational.

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