Saudi Arabia’s military spending localization reached an impressive 24.8 percent in the previous year, edging the nation closer to its ambitious goal of surpassing 50 percent by 2030. This significant announcement came during the inaugural annual military industries sector meeting in Riyadh, organized by the General Authority for Military Industries (GAMI). The event attracted a diverse assembly of government officials, private firms, and defense companies from both local and international arenas.
GAMI, the governing body tasked with overseeing the military sector, plays a critical role in the regulation, development, and performance monitoring of military industries in the kingdom. The meeting also recognized outstanding achievements in localization through the presentation of Excellence in Military Industries Localization Awards to various entities that met established performance benchmarks.
Among the honored private-sector winners were SAMI Advanced Electronics, BAE Systems Arabia, and Saudi Aircraft Preparation and Maintenance Co., alongside several small- and medium-sized enterprises. Ahmed Al-Ohali, Governor of GAMI, emphasized the authority’s strategic focus on fostering a sustainable military industries sector capable of delivering substantial strategic, developmental, and economic benefits for the nation and its citizens.
Rooted in Saudi Arabia’s Vision 2030 initiative, the country is implementing a series of measures aimed at enhancing its defense capabilities. This includes encouraging foreign defense firms to establish local offices, which fosters partnerships and bolsters domestic expertise. Officials highlighted that the evolution of the sector has been significantly driven by advancements in research and innovation, marking a shift from reliance on imports to prioritizing domestic manufacturing.
To facilitate this transition, GAMI has introduced a suite of policies, regulations, and incentives designed to foster growth within the local defense industry and attract investment. Rigorous verification measures have also been put in place, including specialized working groups and external audits, to ensure that the reported localization rates are credible and accurate.
Furthermore, officials noted the importance of developing robust local supply chains and cultivating public-private partnerships, both of which are deemed vital for the sustained growth and investment in the military sector. This approach aims to create a resilient defense industry that not only meets national security needs but also contributes significantly to the overall economy and workforce development in Saudi Arabia.
