GAMI Spotlights Growth in Saudi Arabia’s Military Spending at Global Conference

Saudi Arabia’s military spending has surged in recent decades, reaching $75.8 billion in 2024, according to the Saudi Press Agency (SPA).

In this context, Ahmad Abdulaziz Al-Ohali, Governor of the Saudi General Authority for Military Industries (GAMI), stated that this achievement has positioned the Kingdom as the 5th largest spender globally and the top spender in the Arab world.

Increasing Military Spending

During the Global Strategies in the Defense and Aerospace Industry Conference in Antalya, Türkiye, Al-Ohali elucidated that military expenditure in Saudis reached 75.8 billion dollars in 2024, which is approximately 3.1% of the global military expenditure of 2.44 trillion dollars. Besides, the GAMI Governor divulged that Saudi Arabia has donated $78 billion for the defense in the 2025 budget, which accounts for 21% of the Kingdom's total government spending and 7.1% of its GDP. The 25th Global Strategies in Defense and Aerospace Industry Conference was organized by the Defense and Aerospace Industry Exporters' Association (SSI) and the Turkish Presidency of Defense Industries (SSB), featuring the participation of Professor Haluk Gorgun, President of the Defense Industry Agency; CEOs and business development leaders from major international industrial and defense companies.

Localization of Military Industries

Al-Ohaili, speaking at the conference, remarked that the localization percentage of military industries in Saudi Arabia has constantly increased till it reached 19.35% by the end of 2023. Such growth, in his words, is completely aligned with the objectives of Saudi Vision 2030, which is to build an innovative, industrial, and prosperous, diversified, and sustainable economy.

He further pointed out that Vision 2030 would establish oil revenues as an additional source of income, increase the private sector share of the Saudi economy from 40% to 65%, and enhance non-oil GDP contribution from 16% to 50%. Saudi Arabia is also working toward its strategic objective of localizing 50% of military purchases by the year 2030.

Appealing Investment Climate

Al-Ohaili emphasized the Kingdom's appealing and sustainable investment climate in the military industries sector, which focuses on simplifying the investor experience and offering a range of opportunities, enablers, incentives, and regulatory frameworks.

To support this, GAMI has introduced policies and regulations designed to foster growth in the military industries sector. These include governance frameworks, regulations for military activities, export and import control policies, standards and quality guidelines, intellectual property protections, and industrial participation strategies.

In this context, the GAMI Governor urged stakeholders in the military industries to seize the abundant opportunities available in Saudi Arabia. He highlighted that financial incentives and support extend to both large companies and small and medium-sized enterprises (SMEs) in the military sector, both domestically and internationally.

Additionally, Al-Ohaili emphasized GAMI’s ongoing efforts, in partnership with other organizations, to assist government entities and companies involved in the military industries. This collaboration is focused on advancing localization initiatives to drive the growth and prosperity of the Saudi economy.

Available opportunities

In closing his speech, the GAMI Governor pointed out that a comprehensive study of the Saudi market has identified 74 supply chain opportunities within the military industries sector. The study also highlighted 30 priority opportunities, which account for nearly 80% of future supply chain expenditures.

GAMI works closely with relevant government entities to create integrated incentive packages for investors in the military sector. These packages include framework agreements, financial support such as zero value-added tax, and other incentives aimed at helping the sector achieve its localization goals.