Saudi Arabia Achieves Nearly 25% Defense Localization, Targets 50% by 2030

Significant Strides in Defense Localization Announced at World Defense Show

Riyadh, Saudi Arabia – Saudi Arabia has made substantial progress towards its ambitious defense localization goals, announcing that it has achieved nearly 25% localization in defense equipment procurement. The announcement was made at the World Defense Show 2026 in Riyadh, where officials reiterated the Kingdom's commitment to reaching 50% localization by 2030. This initiative is a cornerstone of Saudi Vision 2030, aiming to diversify the economy and enhance national self-sufficiency.

Progress Under Vision 2030 and GAMI's Leadership

The General Authority for Military Industries (GAMI), the regulatory body for Saudi Arabia's defense sector, confirmed that the localization percentage of military spending reached 24.89% by the end of 2024. This marks a significant increase from just 4% in 2018, demonstrating accelerated development in the sector. Ahmad Al-Ohali, Governor of GAMI, highlighted this achievement on the second day of the World Defense Show, emphasizing the Kingdom's drive to 'build industrial depth' and foster more resilient supply chains. GAMI's role involves developing regulatory frameworks, nurturing national competencies, and promoting investment to enable local and international manufacturers.

Strategic Importance and Economic Impact

The push for defense localization is deeply intertwined with Saudi Vision 2030, which positions the defense industry as a foundational sector with significant spillover effects into advanced manufacturing, electronics, and information technology. The strategy aims to strengthen operational readiness, reduce reliance on foreign imports, and contribute to job creation for Saudi nationals. By localizing military spending, Saudi Arabia seeks to enhance its strategic autonomy and contribute to non-oil GDP growth. The Kingdom's military budget, supported by a substantial $78 billion, underscores the scale of this transformation.

World Defense Show: A Platform for Partnerships and Innovation

The World Defense Show 2026, the third edition of the event, serves as a critical platform for showcasing Saudi Arabia's evolving defense capabilities and fostering international partnerships. The event brings together global leaders and decision-makers, facilitating collaboration and the transfer of advanced technologies. Initiatives like the Saudi Supply Chain Zone are designed to integrate local small and medium enterprises (SMEs) into global defense supply chains, further supporting localization efforts. Key areas identified for investment and development include:

• Artificial intelligence
• Control of the electromagnetic spectrum
• Digital sustainment
• Human-machine teaming
• Autonomy

These technological advancements are crucial for improving military interoperability and enhancing national defense readiness.