A pair of judges at the court dismissed the case brought by the Campaign Against Arms Trade (CAAT), after hearing arguments earlier this year.
The UK-based NGO accuses the government of contributing to breaches of international law and the world's largest humanitarian disaster in Yemen, where conflict has claimed tens of thousands of lives in recent years.
But the judges sided with the British government, concluding there had been "continuing rationality" in a risk assessment performed by officials before restarting arms sales to Saudi Arabia in 2020.
Riyadh has intervened militarily in Yemen since 2015, leading a regional coalition supporting pro-government forces opposed to the Iran-backed Houthi rebels.
The NGO launched the legal challenge after Britain announced the sales resumption, with ministers insisting there was no clear risk that weapons would be used in a serious violation of international humanitarian law.
The government has licensed sales to Riyadh of weaponry including combat aircraft, guided bombs and missiles, with a published value since 2015 of �7.9 billion ($9.8 billion), according to CAAT.
Emily Apple, a spokesperson for the NGO, said it was "obviously disappointed with the verdict".
"The court's ruling, much of which was based on closed evidence that we were not allowed to hear, exposes the low threshold the government has to reach in order to sell weapons to regimes committing human rights violations," she added.
US sanctions Chinese firms aiding Iran missile program
Washington (AFP) June 6, 2023 -
The United States placed sanctions Tuesday on several Chinese and Hong Kong firms it said were supplying Iran's ballistic missile program.
The US Treasury said the Chinese companies shipped centrifuges for producing fuels, non-ferrous metals with potential military use, electronics and gyroscopes to already-sanctioned Iranian government bodies and private companies closely involved in building the missiles.
Washington is concerned that Iran plans to develop nuclear weapons that could be loaded on ballistic missiles to menace Israel and other countries.
The companies include Beijing Shiny Nights Technology Development, Qingdao Zhongrongtong Trade Development, Hong Kong Ke.Do International Trade Co, Lingoe Process Engineering Limited and Zhejiang Qingji Ind. Co.
The US Treasury also placed sanctions on Iran's defense attache in Beijing, Davoud Damghani, saying he coordinated purchasing of Chinese supplies for Iran's defense industry.
The sanctions ban US firms and individuals and companies like global banks with US branches from doing business with those placed on the blacklist.
"Today's action reinforces our commitment to respond to activities which undermine regional stability and threaten the security of our key partners and allies," said Treasury Under Secretary Brian Nelson.
"The United States will continue to target illicit transnational procurement networks that covertly support Iran's ballistic missile production and other military programs," he said in a statement.
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