Kingdom Moves Closer to Goal of 50% Localization by 2030, With Major International Partnerships Driving Growth.
Saudi Arabia’s GAMI’s Military Industry Meeting.
Riyadh, November 10, 2025 – Saudi Arabia’s military industries are on an accelerated path toward self-sufficiency, with the Kingdom’s localization of military spending increasing to 24.89% by the end of 2024. This achievement was officially announced by the General Authority for Military Industries (GAMI) at the Annual Military Industries Sector Meeting, held today in Riyadh. The event, which brought together government entities, private sector stakeholders, and international defense companies, marked a significant milestone in Saudi Arabia’s ambitious strategy to build a robust, self-sustaining military-industrial complex.
The 24.89% localization rate represents steady progress toward the Kingdom’s goal of achieving over 50% localization by 2030. The announcement was accompanied by the recognition of government entities, companies, and sectors that have played a key role in this transformation, with several companies awarded the Excellence Award in Localizing Military Industries for their contributions to the sector.
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Strategic Vision for Localization and Self-Sufficiency
Saudi Arabia’s localization drive is part of a broader strategy aimed at reducing its dependency on foreign defense imports and strengthening the Kingdom’s strategic autonomy. By enhancing its domestic military manufacturing capabilities, Saudi Arabia seeks to position itself as a leading industrial power in the defense sector, capable of meeting its defense needs while driving economic growth and technological innovation.
The rise in military localization can be attributed to a series of targeted initiatives by GAMI, which has worked tirelessly to improve the sector’s regulatory environment, enhance local supply chains, and attract foreign investment. In particular, GAMI has focused on creating legislative frameworks that support local businesses and promote the transfer of advanced defense technologies from international partners to local industries.
“Achieving nearly 25% localization of military spending is a pivotal achievement, but it is only the beginning. By 2030, we aim to exceed 50%, marking Saudi Arabia as a global leader in military innovation and independence,” said Ahmad Al-Ohali, Governor of GAMI, during his address at the meeting.
International Partnerships and Investment Confidence
The Kingdom’s growing military-industrial base is supported by key partnerships with some of the world’s most prominent defense manufacturers. Lockheed Martin, Roketsan, and Saudi Arabian Military Industries (SAMI) are among the major players contributing to the development of local supply chains and capabilities. These partnerships not only ensure the transfer of technology but also help nurture the Kingdom’s workforce, positioning Saudi Arabia as a destination for high-tech defense production.
The collaboration between Saudi Arabia and international companies underscores the strength of the Kingdom’s investment environment and the regulatory frameworks that make it a favorable location for foreign direct investment (FDI). The presence of global defense giants in Saudi Arabia serves as a testament to the Kingdom’s growing importance in the global defense sector and its ability to support the localization of cutting-edge military technologies.
In addition to strengthening military readiness, these international alliances are vital for improving the Kingdom’s domestic manufacturing capabilities, ensuring that Saudi Arabia has the industrial base required to support its defense needs in the long term.
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A Path Towards Self-Sufficiency: Key Achievements and Future Goals
Saudi Arabia has increased localisation of military spending close to 30 percent.
The progress made by Saudi Arabia in localizing military spending is a direct result of several key initiatives that GAMI has implemented over the past few years. The efforts include fostering innovation in local manufacturing, improving infrastructure, and enhancing the skill sets of the Saudi workforce in defense technologies. As a result, the Kingdom is steadily increasing its production capacity in key areas such as missiles, air defense systems, and land vehicles.
One of the most significant developments in recent years has been the success of SAMI, the Kingdom’s state-owned military industrial conglomerate, in collaborating with global defense leaders to establish local manufacturing plants and develop new technologies. Lockheed Martin, for example, has worked closely with SAMI to establish joint ventures in Saudi Arabia, focusing on producing advanced aircraft and missile systems domestically. This partnership not only helps Saudi Arabia meet its growing defense requirements but also creates high-paying jobs and fosters technological expertise within the Kingdom.
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“We are committed to building a sustainable and technologically advanced military industry in Saudi Arabia, one that is capable of meeting both domestic and regional security needs. Our partnerships with companies like Lockheed Martin and Roketsan have been instrumental in achieving this vision,” said Ayman Al-Hassan, CEO of SAMI.
The Role of Global Companies in Saudi Arabia’s Defense Evolution
The discussion at the Annual Military Industries Sector Meeting also highlighted the important role that global defense companies play in supporting the Kingdom’s local supply chains and its push for technological self-reliance. A dedicated session titled “The Role of Global Companies in Developing Local Supply Chains for Military Industries” featured SAMI, Lockheed Martin, and Roketsan Saudi Arabia sharing their experiences and insights into the localization process.
The session served as a platform for fostering greater collaboration between Saudi Arabia and international defense contractors, offering an opportunity to explore new avenues for innovation, knowledge transfer, and long-term partnerships. By leveraging these relationships, Saudi Arabia hopes to advance its military industrialization while ensuring that local suppliers are integrated into the global defense supply chain.
A Vision for 2030 and Beyond
The Annual Military Industries Sector Meeting also showcased the Kingdom’s broader strategic vision for defense and industrial development under its Vision 2030 plan. The meeting was attended by ministers, CEOs, and senior officials from both local and international defense companies, as well as investors eager to explore opportunities in the Kingdom’s expanding defense sector.
Saudi Arabia’s commitment to localization is not just about defense; it is also about diversifying the economy, creating high-tech jobs, and building a sustainable industrial base that can withstand geopolitical shifts and ensure long-term security. As the Kingdom continues to make strides in localizing military spending, it is also investing in education and training to equip its workforce with the skills necessary to take on leadership roles in the defense industry.
The successful localization of military spending and the growing number of global defense partnerships reflect the Kingdom’s determination to position itself as a regional and global leader in military industries. With a clear path toward its 50% localization goal by 2030, Saudi Arabia is not only preparing for a more secure future but is also building the foundation for a prosperous and independent defense sector that can serve as a model for other nations in the region.
Conclusion: A Stronger, Self-Reliant Saudi Defense Industry
As Saudi Arabia continues its journey toward military self-sufficiency, the 24.89% localization of its military spending is a clear indicator of the progress already made. With ongoing efforts to strengthen its industrial base, attract investment, and foster international collaborations, Saudi Arabia is steadily advancing toward its goal of becoming a dominant player in the global defense sector by 2030.
Through strategic investments, regulatory support, and the development of local supply chains, Saudi Arabia is not only transforming its military industries but also contributing to regional stability and global security. As the Kingdom moves closer to its ambitious target, it remains committed to strengthening its defense autonomy while ensuring the sustainability of its defense industry for future generations.
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