RIYADH — The General Authority for Military Industries (GAMI) announced that the localization of military spending in Saudi Arabia has risen to 24.89 percent by the end of 2024. This marks continued progress toward achieving over 50 percent localization by 2030.

The announcement was made on Monday during the first Annual Military Industries Sector Meeting, organized by GAMI in Riyadh, with broad participation from government and private entities, as well as local and international companies operating in the defense sector. During the event, GAMI honored beneficiary government entities and sectors, as well as companies operating in the industry that won the Excellence Award in Localizing Military Industries.

In his address at the meeting, Eng. Ahmad Al-Ohali, governor of GAMI, affirmed that the localization rate of military spending represents a pivotal milestone in the development of the military industries sector. He attributed this achievement to the unwavering support the authority has received from Custodian of the Two Holy Mosques King Salman and Crown Prince, Prime Minister, and Chairman of the Board of Directors of GAMI Prince Mohammed bin Salman.

"GAMI's sectoral and institutional strategies prioritize the military industries sector to build a sustainable local industry that will generate significant strategic, developmental, and economic benefits for the nation and its citizens. We strive to enhance this role in partnership with you and all those working in this promising sector,” he said.

The winners of the Excellence in Military Industries Localization Award were announced during the event. This award is granted to beneficiary government agencies and their sectors, as well as companies operating in the sector. The winners in the Military and Security Agencies Excellence in Planning category were the Ministry of Interior, the Presidency of State Security, and the General Intelligence Directorate. The winners in the Military and Security Agencies Excellence in Implementation category were Ministry of Defense, Ministry of Interior, Ministry of the National Guard, and Royal Guard Presidency. Nine companies have won prizes in the Military Sector Companies Excellence category.

GAMI also celebrated the graduates of its scholarship and secondment program, who were trained to work in line with the human resources strategy for the military industries sector. This strategy contributes to empowering the sector by enhancing national competencies and talent, and preparing young Saudi men and women to work in one of the Kingdom's most vital and important sectors.

According to GAMI, the increase in the localization percentage in military spending represents a pivotal stage in the development of Saudi Arabia’s military industries sector. It is the result of ongoing efforts to enable the sector through the development of regulatory and legislative frameworks, the growth of Saudi supply chains in military industries, and the promotion of investment, enhancing the sector’s ability to expand and grow while creating opportunities for national talent to contribute to the future of this industry.

The localization percentage achieved in military spending reflects a comprehensive strategy aimed at building a sustainable national sector capable of achieving self-sufficiency and strengthening the Kingdom’s strategic autonomy.

It noted that Saudi Arabia is committed to establishing international partnerships with leading global manufacturers to transfer advanced technologies and localize industrial capabilities. The presence of major international defense companies in the Kingdom reflects strong confidence in its investment environment and regulatory frameworks. This contributes to enhancing Saudi Arabia’s military readiness and defense independence by showcasing its growing military industrial capabilities and the progress made toward building advanced, sustainable defense industries that support localization and strengthen national defense capacities.

GAMI continues to enable the sector in Saudi Arabia through international partnerships with leading global manufacturers to transfer advanced technologies and localize industrial capabilities, further advancing the localization journey and building a sustainable, advanced military industry that supports defense readiness and the beneficiaries of its capabilities.

On the sidelines of the annual meeting, Saudi Arabian Military Industries (SAMI), Lockheed Martin, and Roketsan Saudi Arabia presented their experiences in the Saudi market through a session titled: “The Role of Global Companies in Developing Local Supply Chains for Military Industries.”

The annual meeting reflects the positive image of Saudi Arabia as a significant industrial power in the defense sector and reinforces its position as a stable and attractive investment destination built on clear strategic plans.

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