Gami on SAUDI VISION 2030 Intelligence Platform

Defence and Military Industries

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This section examines Saudi Arabia’s defence and military industries under Vision 2030, including the 50 percent localisation target for military equipment spending. Coverage includes the Saudi Arabian Military Industries (SAMI) portfolio, the General Authority for Military Industries (GAMI) regulatory framework, aerospace and unmanned systems, naval shipbuilding, land systems, defence electronics, offset requirements, and joint venture structures with international defence primes.

Sector Overview

Localising One of the World’s Largest Defence Budgets

Saudi Arabia is among the world’s largest defence spenders, consistently ranking in the global top five by military expenditure. Historically, the vast majority of this spending has flowed to foreign defence contractors, with the Kingdom importing virtually all of its military equipment, platforms, weapons systems, and support services. Vision 2030 set an ambitious target to reverse this dynamic: localise 50 percent of military spending by 2030, creating a domestic defence manufacturing industry that captures a substantial share of the defence budget while building industrial capabilities with both military and civilian applications.

Defence Sector Across the GCC: Military Industry Benchmark

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Overview

Defence spending across the GCC exceeds one hundred billion dollars annually, making the Gulf one of the world’s most significant defence procurement markets. Historically, virtually all military equipment was imported from Western and, increasingly, Asian suppliers. The current strategic shift toward defence localisation represents a major industrial policy initiative across the GCC, driven by national security imperatives, economic diversification objectives, and the recognition that defence manufacturing creates high-technology employment and builds advanced engineering capabilities transferable to civilian industries.

Gap Alert: Defence Spending Localisation 50% Target

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Saudi Defence Localisation Gap: Vision 2030 KPI

This tracker measures the Saudi defence localisation gap against the Vision 2030 KPI of localising 50% of military spending by 2030.

Metric	Value
Current Value	~18-20% localised
2030 Target	50% of defence spending
Gap	~30 percentage points
Required Annual Rate	~7.5 pp per year
Years Remaining	4
Risk Level	High

Analysis

Saudi Arabia is one of the world’s largest defence spenders, with annual military expenditure exceeding USD 65 billion. The Vision 2030 target to localise 50% of this spending represents both an economic diversification ambition and a strategic sovereignty objective. At baseline, the Kingdom imported the vast majority of its military equipment, with domestic defence industrial content estimated at below 5%. By 2025, localisation has risen to an estimated 18-20%, driven by the establishment of Saudi Arabian Military Industries (SAMI), the General Authority for Military Industries (GAMI), and a growing network of defence joint ventures with international partners.

General Authority for Military Industries (GAMI)

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GAMI Saudi Arabia: Defence Industry & Vision 2030

GAMI Saudi Arabia is the General Authority for Military Industries, the regulator and development body behind the Kingdom’s defence industry localisation strategy under Vision 2030. Established in 2017, GAMI’s central objective is to localise 50 percent of military spending by 2030 while building a self-sustaining domestic defence industrial base.

GAMI operates under a mandate that is simultaneously regulatory, developmental, and commercial: it licenses defence companies, regulates the sector, develops industrial strategy, and promotes Saudi Arabia as both a defence manufacturing destination and an arms export market participant.

Military Spending in Saudi Arabia

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Military Spending in Saudi Arabia 2025

Military spending in Saudi Arabia in 2025 remains among the highest in the world, with annual defence expenditure estimated at USD 70 to 80 billion and roughly 6 to 7 per cent of GDP. This level of defence spending reflects the Kingdom’s strategic position in a volatile regional security environment, its alliance commitments, and an ambitious programme to develop a domestic defence industrial base. Vision 2030 explicitly targets the localisation of over 50 per cent of military equipment spending, transforming defence procurement from an import-dependent model to a driver of industrial development and technology transfer.

Saudi Defence Companies

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Saudi defence companies are being built into a strategic industrial base under Vision 2030, with the objective of localising fifty per cent of military spending by 2030. As one of the world’s largest defence spenders, the Kingdom represents an enormous domestic market opportunity for defence manufacturers, and the development of indigenous production capabilities is intended to reduce import dependence, create high-value employment, develop advanced manufacturing skills, and generate potential export revenue. The sector is regulated by the General Authority for Military Industries (GAMI) and anchored by Saudi Arabian Military Industries (SAMI), the PIF-owned national defence conglomerate.

Saudi Defence Manufacturing

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Saudi Arabia Defence Manufacturing

Saudi Arabia defence manufacturing under SAMI and Vision 2030 is shifting the Kingdom from near-total dependence on imported military equipment toward a domestic industrial base capable of producing, maintaining, and eventually exporting defence systems. Vision 2030 establishes an explicit target of localizing 50 percent of military equipment spending — one of the most ambitious defence industrialization targets among major defence procurement nations. This objective is being pursued through Saudi Arabian Military Industries (SAMI), the General Authority for Military Industries (GAMI), and a comprehensive programme of international partnerships, technology transfers, and greenfield manufacturing investments.

What is GAMI?

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The core GAMI Saudi Arabia KPI is Vision 2030’s target to localise 50 per cent of military spending by 2030, up from a very low baseline at launch. The General Authority for Military Industries (GAMI) is the Saudi Arabian regulatory and enabling body responsible for the development, regulation, and oversight of the Kingdom’s military industries sector. Established by Royal Decree in 2017, GAMI operates under the direct authority of the Crown Prince and is mandated to build a sustainable, competitive domestic defence industrial base that reduces Saudi Arabia’s dependence on foreign military equipment and contributes to the broader economic diversification objectives of Vision 2030.