Saudi Arabia Hits 24.89% Military Spending Localization
The General Authority for Military Industries (GAMI) has announced a major milestone: nearly 25% of Saudi Arabia’s military spending now goes to local companies. By the end of 2024, the localization rate reached 24.89%, showing strong progress toward the goal of over 50% by 2030.
GAMI celebrated this achievement at its Annual Military Industries Sector Meeting in Riyadh. The event brought together government officials, local and international defense companies, and honored organizations that excel in localizing military production.
What This Achievement Means
This 24.89% figure represents more than just a number—it shows that Saudi Arabia is building a real defense industry at home. The progress comes from three key areas:
- Better regulations: Clear rules and frameworks that help businesses operate
- Stronger supply chains: More Saudi companies can now produce military equipment and parts
- Increased investment: More money flowing into the defense sector creates jobs and opportunities
These efforts are creating new career paths for Saudi talent and building expertise that will last for generations.
Building Self-Sufficiency
Saudi Arabia’s strategy is straightforward: develop a defense industry that can meet the country’s own needs. This reduces dependence on foreign suppliers and strengthens national security.
The Kingdom is partnering with top global defense manufacturers to bring advanced technology into the country. Major international companies are setting up operations in Saudi Arabia, showing confidence in the business environment and regulatory system.
These partnerships do more than just build factories—they transfer knowledge, train local workers, and create a foundation for long-term industrial growth.
How It’s Happening
GAMI works with leading global manufacturers to:
- Transfer cutting-edge technology to Saudi facilities
- Train Saudi engineers and technicians
- Build local production capabilities
- Create sustainable defense industries
This approach ensures that the country isn’t just buying military equipment, but learning how to design and build it.
Learning from Experience
During the meeting, three major players shared their stories:
- Saudi Arabian Military Industries (SAMI)
- Lockheed Martin
- Roketsan Saudi Arabia
Their session, “The Role of Global Companies in Developing Local Supply Chains for Military Industries,” offered practical insights into making localization work in real-world conditions.
A Strategic Platform
The Annual Military Industries Sector Meeting 2025 brought together ministers, senior officials, CEOs from defense companies worldwide, and investors. The gathering serves as a hub where government meets industry, and international experience meets local ambition.
The event showcases Saudi Arabia as a serious player in global defense manufacturing and demonstrates that the country offers a stable, attractive environment for defense investment backed by clear long-term plans.
Ready to Explore Defense Opportunities in Saudi Arabia?
The Kingdom’s commitment to defense localization creates significant opportunities for international companies looking to enter or expand in the Saudi market. Whether you’re seeking partnerships, navigating regulatory requirements, or exploring contract opportunities, local expertise makes all the difference.
KAMS Global is based in Saudi Arabia and specializes in helping international aviation and defense companies successfully enter and operate in the Kingdom’s growing market.
Get in touch with one of our specialists to discuss:
- Market entry strategies for Saudi Arabia’s defense sector
- Partnership and localization opportunities
- Regulatory guidance and compliance
- Connecting with key stakeholders and decision-makers
Get in touch to learn how we can support your growth in one of the world’s most dynamic defense markets.
November 13, 2025: Source: GAMI Press Release
