Saudi Arabia: The General Authority for Military Industries has announced that the localization rate of military spending in Saudi Arabia reached 24.89 percent by the end of 2024, underscoring continued progress toward the Kingdom’s goal of exceeding 50 percent by 2030. 

The milestone was revealed during the first annual meeting for the military industries sector, organized by GAMI in Riyadh under the patronage of its governor, Ahmed bin Abdulaziz Al-Ohali, with wide participation from government entities, private firms, and local and international defense companies. 

In a speech at the meeting, Al-Ohali said the achievement represents a pivotal milestone in developing the Kingdom’s defense industries, made possible through the support of King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman, who also serves as prime minister and chairman of GAMI’s board.  

“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,” Al-Ohali said. “We strive to enhance this role in partnership with you and all those working in this promising sector.” 

He added that the authority has introduced a comprehensive package of enablers — including new policies, legislation, regulations, and incentives — to support sector growth and attract investment, while working closely with government partners to create a competitive business environment.  

For his part, Mohammed bin Saleh Al-Adhl, deputy governor of the General Authority for Military Industries for Localization, said localizing military spending is not just a target or statistic but a national endeavor reflecting Saudi Arabia’s determination to build self-sufficient defense industries capable of meeting domestic needs. He added that the initiative marks a qualitative leap, driven by a clear vision, strategic planning, structured execution, and substantial investment in industrial infrastructure. 

He stated that the authority is keen to implement a sound work plan to ensure the accuracy of the localization rate in military spending through a series of procedures that guarantee the quality of the measurement mechanism. This is achieved by forming working groups to audit contracts, review budgets, analyze figures, and verify them through external accountants and auditors to ensure the accuracy of the percentage.  

The authority also evaluates each procedure and ensures its quality and impartiality in cooperation with beneficiary and supporting entities, as well as companies operating in the military industries sector. 

During the meeting, GAMI honored government and private-sector entities with the Excellence in Military Industries Localization Awards. 

The winners in the Military and Security Entities Excellence Track in Planning are the Ministry of Interior, the Presidency of State Security, and the General Intelligence Presidency. The winners in the Military and Security Entities Excellence Track in Implementation are the Ministry of Defense, the Ministry of Interior, the Ministry of National Guard, and the Presidency of the Royal Guard. 

Nine companies were recognized in the Military Sector Companies Excellence Track across its three categories: in the Manufacturers category — SAMI Advanced Electronics Co., National Mechanical Systems Co., and Military Clothing and Equipment Factory; in the Service Providers category — BAE Systems Arabia for Industry, Saudi Aircraft Preparation and Maintenance Co., and SAMI Al Salam Aerospace Industries; and in the Small and Medium Enterprises category — SAMI Aerospace and Space Mechanical Co., Saudi Leather Industries Co., and Eraf Industrial Co. Ltd. 

For his part, Faleh bin Abdullah Al-Sulaiman, governor of the General Authority for Defense Development, highlighted the role of research and innovation as a fundamental pillar in localizing and advancing the military industries sector, enabling the shift from consumption to manufacturing. He noted that research and development serve as key drivers for sustaining industries, ensuring that national products keep pace with global advancements and enabling continued growth. 

In turn, Salman bin Nasser Al-Shathri, chairman of the National Committee for Military Industries at the Federation of Saudi Chambers, expressed pride in the close partnership between the committee and the General Authority for Military Industries.  

He said the collaboration has led to several workshops and coordination meetings aimed at exploring development opportunities, reviewing regulations and systems, sharing success stories, and exchanging ideas between the public and private sectors. 

He emphasized the pivotal role of local supply chains in strengthening the military industries sector and creating promising investment opportunities for entrepreneurs and small and medium-sized enterprises, supported by government incentives, regulatory enablers, and tangible growth prospects in one of the Kingdom’s most strategic sectors. 

Following this, the deputy governor of the High Commission for Industrial Security, Ibrahim bin Abdulqader Al-Abu Issa, reviewed the commission’s role in supporting the military industries sector. The deputy governor of the General Authority for Military Industries for the Enabling Sector, Saleh bin Abdullah Al-Aqili, then outlined the authority’s efforts to develop policies and legislation and to foster partnerships that enable local companies to enhance the industrial capabilities of the military supply chains. 

The CEO of Saudi Arabian Military Industries, Thamer bin Mohammed Al-Muhaid, also discussed the role of major companies in developing local supply chains. 

At the conclusion of the meeting, the General Authority for Military Industries honored the graduates of its scholarship and secondment program, who have been qualified in line with the human resources strategy for the military industries sector. The initiative aims to empower the sector by developing national talent and preparing young Saudi men and women to work in one of the Kingdom’s most vital industries. 

The meeting was attended by several high-ranking officials, heads of local and international companies specializing in military industries, and investors in the sector.