Saudi military spending 24.89% localized in 2024: GAMI

Logo of General Authority for Military Industries (GAMI)

The General Authority for Military Industries (GAMI) announced that the localization of military spending in Saudi Arabia rose by 20% to 24.89% in 2024, reaffirming the government’s unlimited support and the integrated efforts with public and private sector partners to achieve the Saudi Vision 2030 target of localizing more than 50% of military spending by 2030.

The local content share of military spending increased from 38.39% at the end of 2023 to 40.74% by the end of 2024, GAMI said on X.

The achieved gross output reached SAR 6.67 billion, contributing 0.143% to GDP, while total employment generated amounted to SAR 4.26 billion, contributing 0.423%, as shown below:

The authority also indicated that the growth in localization rates was driven by increased investments in the sector, which enhanced the industrial capabilities of local companies to meet the demand of beneficiary entities for domestic industrial capacities. Beneficiary entities also played an important role in giving local companies the opportunity to fulfill their needs.

For his part, GAMI Governor Ahmad Al-Ohali, speaking at the annual gathering for the military industries sector in Riyadh, stated that the military industries strategy aims to build a sustainable local industrial sector that delivers strategic security, developmental, and economic benefits for the nation and its citizens.

He added that this enhances defense independence and strengthens sector governance.

He noted that the authority has issued a package of enablers—including policies, regulations, legislation, and incentives—to support growth in the sector and empower investors to contribute to the localization journey, while coordinating with relevant government entities to prepare an attractive investment environment.