Increase in Localization of Military Spending in Saudi Arabia to 24.89%
The General Authority for Military Industries (GAMI) announced that the localization percentage of military spending in the Kingdom of Saudi Arabia has risen to 24.89% by the end of 2024. This marks continued progress toward achieving over 50% localization by 2030. Furthermore, GAMI honored beneficiary government entities and sectors, as well as companies operating in the industry that won the Excellence Award in Localizing Military Industries.
This came during the Annual Military Industries Sector Meeting, organized by GAMI today in Riyadh, with wide participation from government and private entities, along with local and international companies operating in the sector.
This percentage represents a pivotal stage in the development of Saudi Arabia’s military industries sector. It is the result of ongoing efforts to enable the sector through the development of regulatory and legislative frameworks, the growth of Saudi supply chains in military industries, and the promotion of investment, enhancing the sector’s ability to expand and grow while creating opportunities for national talent to contribute to the future of this industry. The localization percentage achieved in military spending reflects a comprehensive strategy aimed at building a sustainable national sector capable of achieving self-sufficiency and strengthening the Kingdom’s strategic autonomy.
Saudi Arabia is committed to establishing international partnerships with leading global manufacturers to transfer advanced technologies and localize industrial capabilities. The presence of major international defense companies in the Kingdom reflects strong confidence in its investment environment and regulatory frameworks. This contributes to enhancing Saudi Arabia’s military readiness and defense independence by showcasing its growing military industrial capabilities and the progress made toward building advanced, sustainable defense industries that support localization and strengthen national defense capacities.
GAMI continues to enable the sector in Saudi Arabia through international partnerships with leading global manufacturers to transfer advanced technologies and localize industrial capabilities, further advancing the localization journey and building a sustainable, advanced military industry that supports defense readiness and the beneficiaries of its capabilities.
On the sidelines of the annual meeting, Saudi Arabian Military Industries (SAMI), Lockheed Martin, and Roketsan Saudi Arabia presented their experiences in the Saudi market through a session titled: “The Role of Global Companies in Developing Local Supply Chains for Military Industries.”
It is worth noting that the Annual Military Industries Sector Meeting 2025, organized by GAMI, serves as a strategic platform bringing together beneficiary and supporting government entities and companies operating in the sector. The event was attended by several ministers, senior officials, and CEOs of local and international defense companies, as well as investors. The annual meeting reflects the positive image of Saudi Arabia as a significant industrial power in the defense sector and reinforces its position as a stable and attractive investment destination built on clear strategic plans.
