Breaking News
Saudi Arabia Increases its Military Budget and Reinforces its Leadership in Middle East.
Saudi Arabia has announced an increase in its defense budget for 2025, raising military expenditures to $78 billion from $75.8 billion in 2024. This allocation accounts for 21% of the country's public spending and 7.1% of its gross domestic product, according to Ahmad Al-Ohali, Governor of the General Authority for Military Industries (GAMI). The increase follows a consistent growth trend, with an annual average rise of 4.5% since 1960. Saudi Arabia is now among the five largest military budgets globally and remains the leading defense spender in the Arab world.
Over the past year, Saudi Arabia has undertaken several defense acquisitions and industrial initiatives aimed at modernizing its armed forces and strengthening its military industry (Picture source: US DoD)
As one of the world’s largest importers of military equipment, the country continues its strategic shift under Vision 2030, a program launched in 2016 to diversify the economy and enhance domestic industrial capabilities, including in the defense sector. A key objective of this initiative is to localize 50% of defense expenditures by 2030. Ahmad Al-Ohali expressed confidence in achieving this target, stating in February 2024 that the country could even exceed this threshold before the decade’s end.
Over the past year, Saudi Arabia has undertaken several defense acquisitions and industrial initiatives aimed at modernizing its armed forces and strengthening its military industry. In February 2024, the country ordered the South Korean Cheongung II air defense system for $3.2 billion. This medium-range missile system complements existing capabilities such as the Patriot and THAAD systems, enhancing national air defense.
In October 2024, the U.S. Department of Defense approved the sale of 220 AIM-9X Block II Sidewinder tactical missiles to Saudi Arabia, valued at $252 million. The agreement includes technical support and training programs to enhance the capabilities of the Royal Saudi Air Force.
Additionally, in December 2024, the Spanish shipbuilder Navantia signed a contract with the Saudi Ministry of Defense to build three AVANTE 2200 corvettes for the Royal Saudi Navy. The final vessel is scheduled for delivery by 2028. The project includes crew training and integrated logistical support, with construction expected to generate around four million work hours and create up to 2,000 jobs in Spain.
Saudi Arabia has also shown interest in acquiring Rafale F4 fighter aircraft from Dassault Aviation. After encountering difficulties in purchasing 48 Eurofighter Typhoon jets due to a German veto, the country submitted a request for a proposal in October 2023 for 54 Rafale F4 aircraft, marking a possible shift in its procurement strategy.
These initiatives align with the broader goals of Vision 2030, which seeks to enhance domestic military production and reduce dependence on foreign suppliers. At the World Defense Show 2024 in Riyadh, Ahmad Al-Ohali announced that the localization rate for Saudi Arabia’s defense industry had reached 19.35% by the end of 2023, up from 4% in 2018. This reflects ongoing efforts to develop a self-sufficient defense sector.
To support these ambitions, GAMI launched the “Invest in Saudi Arabia” platform in October 2023, aimed at attracting foreign investment and providing insights into opportunities within the Saudi defense market. In a recent statement, Ahmad Al-Ohali highlighted 74 identified opportunities in the country’s military supply chains, with 30 prioritized projects accounting for approximately 80% of future procurement expenditures.
Saudi Arabia continues to position itself as a key player in the global defense industry while advancing its strategic objective of reducing reliance on foreign defense suppliers. The expansion of its military sector remains a central element of its broader economic and geopolitical transformation.