Saudi Arabia's military spending localization reaches 27.3% in 2025
The General Authority for Military Industries reports exceeding its annual target, with plans to reach 50% by 2030.
At a glance
- Localization of military spending reached 27.3% in 2025, exceeding the 24% annual target
- Rate increased from 20% in 2024, continuing an upward trend since 4% in 2018
- Sector contributed SR7.468 billion to GDP and SR5.243 billion to employment
- Target of 50% localization by 2030 announced
Saudi Arabia's localization of military spending reached 27.30 percent by the end of 2025, according to the General Authority for Military Industries (GAMI). This exceeded the annual target of 24 percent by 3.30 percentage points, up from 20 percent in 2024.
GAMI reported the localization rate has grown steadily since 2018, when it stood at 4 percent. The authority said the sector contributed SR7.468 billion to gross domestic product and SR5.243 billion to employment. The Kingdom is targeting a 50 percent localization rate by 2030.
Why it matters
The figures reflect efforts to increase domestic content in military procurement and boost the local defence industry's contribution to the economy.
Original reporting
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