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Saudi Military Spending Localization Reaches 27.3%

October 25, 2026

2 min read

Key Takeaways

Saudi military spending localization rate reached 27.3% by 2025.
The sector contributed SR7.468 billion to the Kingdom's GDP in 2025.
Saudi Arabia aims to localize over 50% of military spending by 2030.

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Strategic Implications

This growth may indicate Saudi Arabia's increasing focus on domestic defense capabilities, which could strengthen its national security and reduce reliance on foreign suppliers. The development of local supply chains suggests a shift towards self-sufficiency, which may have implications for international defense manufacturers.

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What Happened

Riyadh Forum Highlights Industry Growth Amid Geopolitical Tensions

Saudi Arabia’s military spending localization rate has risen to 27.3% by the end of 2025, up from 4% in 2018, according to figures presented at the Military Industries Forum in Riyadh. The sector contributed SR7.468 billion to the Kingdom’s GDP in 2025, with the goal of localizing over 50% of military spending by 2030. The forum, organized by the General Authority for Military Industries, highlighted the growth of the industry amid geopolitical tensions and supply chain disruptions. This development was reported by Arab News.

Source | Originally Published: October 25, 2026

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