Saudi Arabia increases military spending localization to 27.3%

Saudi Arabia has reached a 27.3% localization rate for its military spending in 2025, according to the General Authority for Military Industries (GAMI). This progress is part of the Saudi Vision 2030 initiative, which aims to localize more than 50% of military spending by 2030 to diversify the economy and reduce reliance on oil.

Local content within the military industry has reached approximately 41%. The localization rate varies by sector, with the aerospace sector recording 45%, armament at 43%, maritime at 36%, land systems at 33%, and defense electronics at 30%.

The military sector's contribution to the national GDP reached 7.5 billion riyals, while compensation for workers rose to 5.2 billion riyals. The workforce in the sector has grown from 34,000 to 49,000 employees, with a Saudization rate of approximately 56%.

Despite these localization efforts, Saudi Arabia remains the world's third-largest arms importer, following Ukraine and India. Between 2021 and 2025, the Kingdom accounted for 6.8% of global major arms imports, with 77% of those imports originating from the United States.