Military-Industry on SAUDI VISION 2030 Intelligence Platform

Defence Sector Across the GCC: Military Industry Benchmark

Sun, 22 Feb 2026 00:00:00 +0000

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

Sun, 22 Feb 2026 00:00:00 +0000

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.

Saudi Defence Manufacturing

Sun, 22 Feb 2026 00:00:00 +0000

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.