Saudi Arabia has announced that military spending localization reached 24.8 percent last year, bringing the country closer to its target of exceeding 50 percent by 2030, Arab News reported.
The announcement was made during the first annual military industries sector meeting in Riyadh, hosted by the General Authority for Military Industries (GAMI) and attended by government agencies, private companies, and local and international defense firms.
GAMI, the official body overseeing the sector, is responsible for regulation, development, and performance monitoring.
The meeting included the presentation of Excellence in Military Industries Localization Awards to government bodies and companies that met performance criteria.
Private-sector winners included SAMI Advanced Electronics, BAE Systems Arabia, and Saudi Aircraft Preparation and Maintenance Co., as well as several other small- and medium-sized enterprises.
“GAMI’s sectoral and institutional strategies prioritize the military industries sector to build a sustainable local industry that will generate significant strategic, developmental, and economic benefits for the nation and its citizens,” said Ahmed Al-Ohali, Governor of GAMI.
Supporting Localization
As part of its Vision 2030 initiative, Saudi Arabia has introduced measures to boost its defense capacity, including inviting foreign defense companies to set up local offices to support partnerships and strengthen domestic capabilities.
Officials said research and innovation have driven the sector’s development, shifting focus from importing to domestic manufacturing.
To reinforce this transition, GAMI has introduced policies, legislation, regulations, and incentives to promote domestic defense industry growth and attract investment.
The authority has also implemented verification measures, including working groups and external audits, to ensure the reported localization rate is accurate.
Moreover, officials added that strong local supply chains and public-private partnerships are essential for sustaining growth and investment in the sector.
