Developing Story
Saudi Military Industry Localization Program
Saudi Arabia's military industry localization rate has grown from 4% in 2018 to 27.3% by end-2025, with officials saying recent Houthi attacks are accelerating rather than hindering the push toward 50% localization by 2030. The program is a cornerstone of Saudi Vision 2030 defense strategy.
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## Overview
Saudi Arabia's drive to localize its military industry has reached 27.3% of military spending by the end of 2025, up from just 4% in 2018, according to figures presented at the Military Industries Forum in Riyadh (Arab News, October 25). The General Authority for Military Industries (GAMI) says the sector contributed SR7.468 billion ($1.99 billion) to GDP in 2025, as the Kingdom targets localizing more than 50% of military spending by 2030 (Arab News, October 25).
## Impact of Regional Attacks
Recent attacks on Saudi Arabia — including Houthi missile strikes — are reportedly accelerating rather than disrupting this localization strategy, according to Bandar Al-Khorayef, GAMI's acting governor (Arab News, October 25). "It is helping it grow. It is another demo[nstration]..." of the strategy's importance, Al-Khorayef told Arab News (Arab News, October 25).
## Key Figures
- Bandar Al-Khorayef, Acting Governor of GAMI
- Military Industries Forum, Riyadh
## Why It Matters
This program reflects Saudi Arabia's broader Vision 2030 strategy of reducing foreign dependency and defense-sector strategic autonomy, particularly salient given ongoing Houthi attacks and regional instability. It has implications for global defense contractors and Gulf security dynamics.