With one of the world’s highest military expenditures, Saudi Arabia is shaking up its defense and security sector in order to localize over 50% of its military expenditure by 2030. The industry has witnessed noticeable changes over the recent years in Saudi, with major business climate reforms, including the establishment of General Authority of Military industries (GAMI) as the regulatory body, easy online licensing process, and allowing 100% foreign ownership for companies operating in the sector.
The Kingdom’s localization goal means billions of dollars worth of investment opportunities for both local and international investors, including global original equipment manufacturers (OEMs) and small- and medium-sized enterprises (SMEs).
Explore Saudi Arabia's
Aerospace and Defense Sector
localization target by 2030, up from 8% in 2020
largest military spender around the world in 2020
foreign ownership allowed
A highly lucrative sector given its market size, positive economic spillover, and competitive advantages
- Saudi Arabia is developing its local aerospace and defense manufacturing capabilities and has an ambitious goal of localizing 50% of the sector’s expenditure by 2030.
- The Saudi aerospace and defense sector is dedicated to strengthening national security forces through local manufacturing of key defense equipment and aerospace technologies including aviation services, systems and products. This offers global aerospace and defense players strategic partnership opportunities.
- The sector’s ambitious localization agenda presesnts attractive investment opportunities for companies across the entire aerospace and defense supply chain.
- Foreign companies operating in the sector in compliance with local content requirements have the same rights as Saudi companies, providing an equal playing field for all players.
- Localization agenda fuels the need for the transfer of know-how and technology, presenting incredible opportunities for strategic partnerships.
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