Export controls in the Middle East: Aligning with ITAR, Wassenaar, and local laws

Zain Satardien of Hourani & Partners explains import and export restrictions in the Middle East from the International Traffic in Arms and other regulations.

As defence and technology industries grow, compliance with arms and dual-use goods trade regulations including the US International Traffic in Arms Regulations (ITAR) and initiatives like the voluntary multilateral export control regime called the Wassenaar Arrangement, have become critical. None of the GCC states are Wassenaar Arrangement members but they have implemented regulations to collectively and individually oversee trade in restricted goods, including military goods. Increased defence spending and focus on advanced technology like drones in the region has made ITAR more important. Each GCC state has its own control measures based on national priorities and geopolitical factors.

The GCC Customs Union Agreement (CUA) and GCC Common Customs Law (CCL) (which applies to goods banned or controlled under GCC or national laws) also impact this area. The CUA and CCL set the structure for enabling GCC countries to regulate prohibited and restricted goods according to their own laws. GCC states also set common and individual lists of prohibited and restricted goods and there are mechanisms for their movement within the GCC Customs Union. Under CCL goods are regulated within land and sea areas under customs control. It prohibits ships under 200 tons carrying restricted or prohibited goods from operating in GCC marine customs zones. Customs authorities can also deny entry, transit, or exit of prohibited goods or restricted goods without proper approvals and customs officers can inspect shipments, analyse goods, and seize concealed prohibited goods.

The Unified Guide for Customs Procedures also prohibits entry of certain goods into customs warehouses, free zones, or the GCC Customs Union. Goods subject to local or international bans, conventions, or regulations also cannot be imported, exported, or re-exported. Some businesses in the region lack an understanding of compliance with ITAR, particularly on dual-use goods and technical data transfers which can lead to compliance risks.

Therefore, employee, contractor and partner training and strengthen internal compliance processes in this area is important. Engaging with US and GCC regulatory authorities can provide more clarity on licensing requirements and better oversight. To navigate ITAR requirements alongside regional export control frameworks requires clear, actionable strategies which address compliance and mitigate risks. Those wishing to trade in defence articles or dual-use goods need a comprehensive approach which aligns with the US and local regulations.

Good internal compliance programmes include written policies, procedures, and controls which address licensing, classification, and recordkeeping for export-controlled items. Regular risk assessments and advanced technology solutions can enable real-time monitoring and ensure compliance with both the US Munitions List (USML) and GCC-specific control lists. For example, in the UAE approval is needed for imports and exports of all items subject to the Australia Group (AG), Missile Technology Control Regime (MTCR), Nuclear Suppliers Group (NSG), and the Wassenaar Arrangement as well as transit or transshipment of NSG-controlled items.

The Federal Authority for Nuclear Regulation (FANR) oversees nuclear-related items, and the Executive Office for Control and Non-Proliferation (EOCNP). regulates all other items. EOCNP’s Committee for Goods and Materials Subject to Import and Export Control (CGMSIEC) implements policies on strategic goods control and facilitates international and national partnerships. It also enforces UN Security Council decisions; approves amendments to laws, regulations and the table of commodities on strategic goods; and issues permits for import, export and re-export of certain strategic goods. Federal Decree-Law No. 43/2021 On Commodities Subject to Non-Proliferation governs commodities subject to Weapons of Mass Destruction (WMD) provides non-proliferation rules and defines commodities listed in the ‘Table of Goods’ whose trade can be restricted or prohibited by FANR.

Saudi Arabia has no specific law on dual-use goods or comprehensive export controls. Regulations vary by commodity and are governed by different agencies. Restricted items include medicine, food, military equipment, chemicals, and tobacco. Saudi Arabia Cabinet Decision No. 143/1427 regulates chemical imports. Bahrain has no published law specifically dealing with a strategic goods list but recognises the need to promote legitimate trade and community safety. Other GCC countries lack comprehensive legislation on export control or dual-use goods but publish lists of goods that are prohibited, restricted or subject to enhanced procedures.

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