Saudi Arabia has taken another significant step toward economic diversification with the announcement that the Military Uniform and Accessories Factory in Al-Kharj will soon be privatized. The initiative is being spearheaded by the Military Industries Co. (MIC) in collaboration with the Ministry of Industry and Mineral Resources and the National Center for Privatization.

The privatization process has officially entered the expression of interest (EOI) and request for qualification (RFQ) phases, which are now open to both local and international investors. Interested parties have until October 16 to review details and submit their applications through the National Center for Privatization's platform.

The transaction will be executed through a purchase agreement, under which full ownership of the factory will be transferred from MIC to the private sector. This model ensures that investors will not only manage operations but also drive innovation and growth.

Authorities emphasized that the transfer of ownership will remain aligned with regulations set by the General Authority for Military Industries (GAMI). This guarantees strict compliance with licensing standards while safeguarding the production of high-quality military and non-military uniforms and accessories.

The privatization aims to enhance production capabilities, stimulate business expansion, and create new market opportunities. This includes entering broader business-to-business (B2B) channels, tapping into export markets, and improving overall supply-chain efficiency under private ownership.

Workforce stability and operational continuity are also at the core of the plan. The government has stressed the importance of a smooth transition that protects jobs while empowering the private sector to introduce advanced management practices.

Ultimately, the move reflects the Kingdom's commitment to Saudi Vision 2030, which seeks to strengthen strategic industries, increase private-sector participation, and build a sustainable, globally competitive defense and industrial ecosystem.

Source:

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