- The Kingdom's military spending localization rate rose to 27.3% by the end of 2025, increasing from 4% in 2018
- The military sector is projected to contribute SR7.468 billion ($1.99 billion) to the Kingdom's GDP by 2025
RIYADH: Saudi Arabia’s military spending localization rate reached 27.3 percent by the end of 2025, up from 4 percent in 2018, according to figures presented at the Military Industries Forum in Riyadh on Sunday.
The General Authority for Military Industries said the sector contributed SR7.468 billion ($1.99 billion) to the Kingdom’s gross domestic product in 2025, as Saudi Arabia works toward localizing more than 50 percent of military spending by 2030.
Speaking at the event, Acting Governor of GAMI Bandar Al-Khorayef delivered the opening address, emphasizing the importance of cooperation between government entities and the private sector in developing a competitive and sustainable military industries sector.
He highlighted the transformation taking place in the global defense industry amid geopolitical tensions, supply chain disruptions and rapid technological advances in artificial intelligence, robotics and autonomous systems.
Al-Khorayef, who is also Saudi minister of state and a member of the Cabinet, said these developments were prompting governments and defense manufacturers to reconsider their supply chains, strengthen domestic production and establish new industrial partnerships.
He also emphasized Saudi Arabia’s potential to attract international manufacturers and develop partnerships that support technology transfer, industrial investment and access to regional markets.
Speaking to Arab News on the sidelines of the forum, Hisham Alsharif, vice president of strategy and project management office at the National Co. for Mechanical Systems, said that collaboration between educational institutions and manufacturers was essential to strengthening Saudi Arabia’s defense industry.
He explained that NCMS focuses on transforming engineering research and prototypes into products that meet industrial and operational requirements.
“At NCMS, we foster engineering, starting with collaboration with universities and research centers, and work to bridge the gap between prototypes and manufacturing,” he said.
“This bridging process helps prototypes become certified and qualified to deliver the value required by the end user,” he added.
Beyond research and development, Alsharif said the company supports the design and development of manufacturing facilities, alongside training Saudi professionals to operate and maintain them.
“Our services also extend to designing and delivering factories. We are well equipped to train the human resources required to operate and maintain these facilities,” he said.
He also highlighted the importance of developing reliable local supply chains to ensure that domestically manufactured products meet quality standards.
Steve Clutton, managing director of BAE Systems Saudi Arabia, welcomed the recognition of BAE Systems Arabian Industries, which received an Excellence Award for its contribution to military industry localization.
“We are really proud that BAE Systems Arabian Industries has won an award at this great event. We are proud of the contribution they have made to Saudization in the Kingdom,” he said.
Clutton emphasized that developing local defense capabilities was essential not only for economic growth but also for national security.
“The work they do for the military industries is really important to the sovereignty of the nation,” he added.
Reflecting on the company's longstanding partnership with Saudi Arabia, Clutton said BAE Systems was celebrating its history of cooperation with the Saudi armed forces.
“We started with the Lightning aircraft, and now we have a number of platforms in service with the Royal Saudi Air Force. We also support the Royal Saudi Naval Forces,” he said.
“We provide maintenance and training support to a number of aircraft platforms that are defending the Kingdom all the time. We are really proud to support the armed forces,” Clutton said.
Organized by GAMI, the forum took place at Hilton Riyadh Hotel & Residences under the theme “Developing and Sustaining Investment in the Military Industries Sector,” bringing together government officials, military and security representatives, international defense manufacturers and local companies.
The forum’s agenda included a ministerial panel discussion on investment growth and sustainability in the military industries sector, as well as a session examining supply chain development and growth opportunities.
The industry discussion brought together representatives from Saudi Arabian Military Industries, NCMS and Life Shield, reflecting the growing role of local companies in the Kingdom’s defense manufacturing ecosystem.
International defense manufacturers, including Raytheon Saudi Arabia, Lockheed Martin and BAE Systems, were also included in the forum’s program, highlighting opportunities for cooperation between global defense companies and Saudi industry.
The forum also recognized winners of the Excellence Award in Localizing Military Industries, covering military and security entities as well as companies operating in the sector.
Established in 2017, GAMI serves as the regulator of Saudi Arabia’s military industries sector. Its board of directors is chaired by Crown Prince Mohammed bin Salman, with Defense Minister Prince Khalid bin Salman serving as vice chairman.
