Saudi Arabia’s General Authority for Military Industries (GAMI), in strategic partnership with the Human Resources Development Fund (HRDF), announced support for private sector establishments operating in the military industries sector.
This initiative aims to enable national human capital and provide sustainable job opportunities in line with the Military Industries Human Capital Strategy in the Kingdom.
The outcomes of this partnership stipulate that military industries sector establishments will receive support of up to 50% of an employee’s salary, with a maximum of SAR3,000 (US$800). This enhances these establishments’ ability to attract national talent and achieve employment stability.
The “Employment Support” product provides direct financial support dedicated to enterprises, focusing on incentivizing businesses to employ Saudis in a rapidly growing sector. This aligns with the objectives of Saudi Vision 2030, which aims to localize over 50% of government spending on military equipment and services.
Private sector establishments operating in the military industries sector that wish to benefit from this support can do so by logging into the Human Resources Development Fund's electronic services through their business account and selecting the “Employment Support” product from the programs list.
This initiative falls within an integrated system of programs being implemented by GAMI in cooperation with its partners. The aim is to enable national human resources and enhance local content in military industries, contributing to the achievement of the Kingdom's ambitious localization targets by 2030.
The General Authority for Military Industries (GAMI) was established by a resolution of the Council of Ministers in August 2017, recognizing the significance of the military industries sector in the Kingdom and its role in national security. This authority serves as the official entity for the sector, tasked with regulation, development, and performance monitoring.
In collaboration with public and private sector partners, GAMI works to support the localization and growth of the military industries sector, increase the capability of national military manufacturing, and contribute to achieving the localization targets by 2030. The Authority’s ultimate goal is to achieve a localization rate of over 50% of the Kingdom’s total military spending by 2030, thereby enhancing the Kingdom’s independence, military readiness, and security.
The Human Resources Development Fund (HRDF) was established by Council of Ministers Resolution No. (107), dated 31 July 2000, with the goal of supporting the training and employment of the national workforce in the private sector. To achieve this, the Fund is authorized to do the following:
- Provide financial support for training, qualifying, and employing Saudi nationals in the private sector.
- Contribute to the costs of training the national workforce for private sector jobs. The HRDF Board determines the percentage it covers, while employers pay the remaining amount.
- Cover a portion of the salary for those hired in private sector companies after being trained or hired in coordination with HRDF. Employers cover the rest. This support is provided for up to two years, based on conditions set by the Board.
- Support field programs, projects, and studies aimed at increasing Saudi employment and replacing expat labor.
- Offer loans to training institutions established in the Kingdom or to existing companies looking to expand or modernize their operations.
- Conduct studies related to training, qualification, and employment, and provide technical and administrative consulting to relevant institutions.
HRDF is also linked to the National Development Fund (NDF), established by Royal Decree No. (A/13) on October 4, 2017. NDF is an independent entity, both financially and administratively, and reports to the Prime Minister. It works to enhance the performance of affiliated funds and development banks in line with national development priorities.
