State Dept Upgrades Saudi Arabia for Easier Arms Deals
Published Date: 9/18/2026
Rule
Summary
The Department of State updated the rules about sending defense stuff to certain countries, making the rules clearer and adding Saudi Arabia and Peru as major non-NATO allies. They also changed policies for Ethiopia and Somalia and fixed some small errors. These changes started on September 18, 2026, and affect anyone dealing with defense exports or imports, helping them know exactly what’s allowed and what’s not.
Analyzed Economic Effects
7 provisions identified: 6 benefits, 1 costs, 0 mixed.
Clarified Scope of ITAR Denials
The rule clarifies that prohibitions in ITAR Sec. 126.1 apply to "exports, reexports, retransfers, and temporary imports" of defense articles and defense services and that exemptions in the subchapter cannot be used for proscribed countries, areas, or persons except as provided in Sec. 126.1. This change is effective September 18, 2026.
Ethiopia Policy-of-Denial Terminated
The Department removed Ethiopia from the ITAR policy-of-denial list (paragraph (n) reserved), implementing a Secretary of State determination dated February 5, 2026, terminating the policy of denial for licenses or other approvals for exports of defense articles or defense services destined to or for Ethiopia's armed forces, police, intelligence, or other internal security forces. The rule is effective September 18, 2026.
Canadian Export Paperwork Reduced
Sec. 126.5(b) and 126.5(d) were revised to remove the requirement to obtain a Nontransfer and Use Certificate (Form DSP-83) when using the Sec. 126.5 Canadian exemptions, aligning Sec. 126.5 with Sec. 123.10. The change is effective September 18, 2026.
Saudi Arabia and Peru Added as Allies
The list of "major non-NATO allies" in Sec. 120.23 was revised to add Saudi Arabia (91 FR 3017, January 13, 2026) and Peru (91 FR 3019, January 14, 2026). This regulatory text change is part of the final rule effective September 18, 2026.
Somalia Case-by-Case Licensing Clarified
The Somalia entry was revised to clarify that the supply of weapons, ammunition, or military equipment may be authorized via case-by-case licensing if intended solely for support of European Union training/support activities, Turkey, the United Kingdom, the United States, or other U.N. Member States with a Status of Forces Agreement with Somalia, provided those Member States pre-notify the committee of the U.N. Security Council concerned with Somalia. Effective September 18, 2026.
Libya Policy Text Clarified for Licenses
Multiple clarifications were made to the Libya paragraph in Sec. 126.1, including use of the term "defense services," adding that certain defense services are "provided by the United States Government," and clarifying temporary exports for non‑Libyan providers; licenses or approvals may still be issued on a case-by-case basis as described in those paragraphs. These changes are effective September 18, 2026.
South Sudan Humanitarian Exception Clarified
The South Sudan paragraph was revised to clarify that the policy of denial generally applies to both exports and imports, but that licenses or approvals may be issued, on a case-by-case basis, for non-lethal defense articles intended solely for humanitarian or protective use and related defense services as notified in advance to the committee of the United Nations Security Council concerned with South Sudan. Effective September 18, 2026.
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