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Vision 2030 and Saudi Arabia’s Military Industry: Insights from World Defense Show.
Saudi Arabia is actively advancing the transformation of its defense industry under Vision 2030, with the goal of localizing 50% of military spending by 2030. This objective is supported by key initiatives and significant progress. The country is making strategic investments to develop its domestic defense manufacturing capabilities, increase self-sufficiency, and reduce reliance on foreign suppliers. One of the key events showcasing these advancements is the World Defense Show (WDS) 2026, scheduled to take place in Riyadh, where Saudi Arabia will highlight its growing defense capabilities and industry partnerships.
The World Defense Show (WDS) 2026 will serve as a strategic platform for Saudi Arabia to present its latest advancements in defense manufacturing and innovation. (Picture source: WDS)
Since the launch of Vision 2030 in 2016, Saudi Arabia has made significant progress in localizing its defense industry. The localization rate of military expenditures increased from 4% in 2018 to 19.35% by the end of 2023. This growth is the result of policies and regulations designed to oversee and stimulate the sector, enhancing the competitiveness of domestic products. Additionally, the number of licensed and authorized facilities in the military industry sector increased from five in 2019 to 296 by the third quarter of 2024. These efforts aim to establish a robust industrial base and foster a national ecosystem capable of attracting investment and strategic collaborations with global entities.
Several initiatives have been introduced to achieve these ambitious goals. The General Authority for Military Industries (GAMI) has signed over 53 industrial cooperation agreements, amounting to approximately 35 billion riyals ($9.32 billion), with local and international companies. Among these agreements, around 13 billion riyals ($3.46 billion) pertain to orders for local firms, supporting the development of national capabilities. Saudi Arabia seeks to strengthen ties with major global manufacturers and accelerate technology transfer to its domestic industry through these initiatives.
In parallel, Saudi Arabian Military Industries (SAMI), established in 2017, plays a central role in this transformation. As a wholly owned subsidiary of the Public Investment Fund (PIF), SAMI aims to rank among the top 25 global defense companies by 2030. The company focuses on the development of air, land, naval, and defense systems while forming strategic partnerships to facilitate technology transfer and enhance local capabilities.
The World Defense Show (WDS) 2026 will serve as a strategic platform for Saudi Arabia to present its latest advancements in defense manufacturing and innovation. The event will bring together industry leaders, policymakers, and defense companies to explore opportunities for collaboration and investment, reinforcing Saudi Arabia's role as a growing force in the global defense sector.
Saudi Arabia remains committed to achieving its defense industry localization goals. Investments, international partnerships, and local initiatives are expected to drive significant growth in the coming years, positioning the Kingdom as a key player in the global defense sector.