Saudi Arabia’s military spending localization rate rose to 27.3 percent by the end of 2025, marking a significant increase from 4 percent in 2018, according to data presented at the Military Industries Forum held in Riyadh on Sunday. The General Authority for Military Industries (GAMI) reported that the defense sector contributed approximately SR7.468 billion ($1.99 billion) to the country’s gross domestic product last year, underscoring Riyadh’s strategic goal to localize over 50 percent of military expenditures by 2030.
Bandar Al-Khorayef, acting governor of GAMI and Saudi minister of state, opened the forum with remarks emphasizing the crucial collaboration between government bodies and the private sector to build a competitive and sustainable military industrial base. He drew attention to the evolving global defense landscape affected by geopolitical tensions, supply chain disruptions, and rapid technological progress in areas such as artificial intelligence, robotics, and autonomous systems.
Al-Khorayef highlighted the resulting shift among governments and defense manufacturers to reinforce domestic production capabilities, restructure supply chains, and forge new industrial partnerships. He also pointed to Saudi Arabia’s capacity to attract international defense firms and foster cooperation aimed at technology transfer, industrial investment, and access to regional markets.
On the sidelines of the forum, Hisham Alsharif, vice president of strategy and project management at the National Company for Mechanical Systems (NCMS), stressed the essential role of partnerships between educational institutions and defense manufacturers in advancing Saudi Arabia’s military industry. Alsharif explained that NCMS focuses on converting engineering research and prototypes into operational products while ensuring they meet industry standards.
“At NCMS, we foster engineering through collaboration with universities and research centers to bridge the gap between prototypes and manufacturing,” he said. “This process is critical to certifying and qualifying products to deliver the value required by end users.” Beyond research and development, Alsharif noted the company’s involvement in facility design, development, and the training of Saudi professionals to operate and maintain manufacturing plants. He also underscored the importance of establishing reliable local supply chains to guarantee quality standards for domestically produced military equipment.
Steve Clutton, managing director of BAE Systems Saudi Arabia, welcomed the recognition of BAE Systems Arabian Industries, which received an Excellence Award at the forum for its contributions to military industry localization. Clutton emphasized that bolstering local defense capabilities is vital not only for economic diversification but also for national security.
“The work they do for the military industries is really important to the sovereignty of the nation,” he said. Reflecting on BAE Systems’ longstanding relationship with Saudi Arabia, Clutton cited the company’s involvement with platforms such as the Lightning aircraft currently in service with the Royal Saudi Air Force, as well as its support to the Royal Saudi Naval Forces. He highlighted their ongoing commitment to maintenance and training services for several military assets defending the Kingdom.
Organized by GAMI, the forum convened at the Hilton Riyadh Hotel & Residences under the theme “Developing and Sustaining Investment in the Military Industries Sector.” It brought together government officials, security representatives, international defense firms, and local companies. The agenda featured a ministerial panel discussion on driving investment growth and sustainability in the military sector, alongside sessions exploring supply chain development and business opportunities within the industry.