Arab News
Arab News, Mon, Feb 03, 2025 | Shaaban 4, 1446
KSA's military
spending surges to $75.8bn
Saudi Arabia: Saudi
Arabia’s military spending has increased at an annual rate of 4.5 percent since
1960, reaching $75.8 billion in 2024. This accounts for 3.1 percent of global
defense spending, according to a senior official.
Speaking at the fourth Global Strategies in Defense and Aerospace Industry
Conference in Antalya, Turkiye, Ahmed bin Abdul Aziz Al-Ohali, governor of the
General Authority for Military Industries, noted that global military
expenditure now totals $2.44 trillion.
Al-Ohali emphasized that Saudi Arabia has earmarked around $78 billion for the
military sector in its 2025 budget. This allocation represents 21 percent of the
total government spending and 7.19 percent of the country’s gross domestic
product.
The governor reiterated that the work of GAMI is aligned with Saudi Vision 2030,
which seeks to build a prosperous, diversified, and sustainable economy by
reducing dependence on oil revenues and fostering growth in industry and
innovation.
“In the presence of His Excellency Prof. Haluk Gorgun, chairman of the Defense
Industries Authority of Turkiye, and leaders of Turkish military industry
companies, I discussed Saudi Arabia’s ongoing transformation toward a more
diversified and innovation-driven economy,” Al-Ohali stated.
He further added: “I also emphasized the promising investment opportunities
within Saudi Arabia’s military industries sector and the strategic partnerships
between our two countries, with the goal of localizing over 50 percent of
military spending by 2030.”
The governor underscored GAMI’s commitment to developing a sustainable military
industries sector that not only strengthens military readiness but also makes a
significant contribution to the national economy.
To achieve its localization goals, the authority has introduced several
initiatives designed to attract both foreign and domestic investments in the
defense sector.
Al-Ohali highlighted that GAMI has rolled out a range of incentives to encourage
investment and expand military industries, helping companies meet localization
targets.
“A total of 74 supply chain opportunities have been created within the military
industries sector, with 30 priority opportunities identified, representing about
80 percent of future expenditures on supply chains,” he noted.
The authority is also offering support and facilitation to small and
medium-sized enterprises specializing in military industries, both domestically
and internationally.
“The aim is to establish a resilient and robust military industrial base that
will not only bolster national security but also contribute significantly to the
Kingdom’s economic diversification,” Al-Ohali added.
In November of last year, Al-Ohali mentioned at the Local Content Forum that
Saudi Arabia had localized 19.35 percent of its military spending, a significant
increase from just 4 percent in 2018. The Kingdom plans to exceed 50 percent by
2030.
He also pointed out that the number of licensed entities in the military
industries sector had risen to 296 by the third quarter of 2024.
Saudi Arabia continues to solidify its position as a key player in the global
defense sector, with strategic partnerships and industrial development playing a
pivotal role in achieving the goals outlined in Vision 2030.