The localization percentage in the military industries sector reached 24.89% by the end of 2024, while GAMI aims to achieve a localization percentage exceeding 50% of total government spending on military equipment and services by 2030. Working in an integrated manner with its partners from both the public and private sectors, GAMI is driving the localization of the military industries sector in the Kingdom by enabling local and international manufacturers, opening licensing opportunities for them to invest in a military industries environment that offers unique investment opportunities and incentives that support both local and international investors. In addition, GAMI is enabling national talents to contribute to advancing the ambitious localization journey.
Since its establishment, GAMI has worked on enacting the regulations and legislations governing the military industries sector in the Kingdom, and has sought to enable investors to engage in sector activities. It has also ensured the development of regulatory frameworks that provide essential information for those interested in investing in this promising sector. The number of licensed establishments in the sector has grown from 5 at the time of the Authority’s founding to 572 establishment approvals and licenses by the end of 2024, encompassing a total of 311 establishments in the military industries sector.
The potential surplus was calculated at 3.46% of the total projects after they were launched, with a total amount of SAR 1.8 billion. The number of contracts received by GAMI was 289 requests since its establishment until the end of December 2023, with a total value of SAR 82 billion. The number of programs received by GAMI was 48 programs, with a total value of SAR 2 billion Si
The framework agreements comprised a number of agreements covering a wide range of categories, accounting for a significant portion of spending on military apparel, equipment, weapons, and ammunition. These agreements contributed to notable cost savings, and their total value is expected to reach high levels, with a full commitment to spending the entire amount in the local market.
The Authority has launched the Industrial Participation Program with the aim of developing the economic balance program in the Kingdom, as it aims to benefit from existing capabilities and attract new investments to the sector, and to contribute significantly to encouraging investment in industrial participation activities that qualified to build industrial capabilities in the sector, as the program is considered a An agreement between the General Authority for Military Industries and the main contractor is signed before signing the contract. Which contributes to supporting local content and building new capabilities that contribute to the localization of more than 50% of the Kingdom’s spending on military purchases by 2030.
The General Authority for Military Industries launched the Human Capital strategy for the military industries sector in February 2022, which aims to empower and build a stimulating national system for manpower development based on the military industries localization strategy. This came to ensure the readiness of qualified human resources to achieve the goals of localization of military industries and technologies and the requirements of comprehensive national development, through the education, training, development program, policies, empowerment program, and guidance program - working with the relevant authorities - in a way that contributes to developing and refining the knowledge and capabilities necessary for the military industries sector, according to the Kingdom’s vision 2030.
The General Authority for Military Industries announced the start of establishing the National Academy for Military Industries in May 2022, in line with the Human Capital strategy for the military industries sector. The academy is located in the city of Riyadh on an area of 80,000 square meters and has a capacity of 2000 students annually. While current specializations include:
• Electronics technology in defense
• Mechanical technology in defense
• Electrical technology in defense
• Chemical technology in defense
The General Authority for Military Industries launched the scholarship program for the military industries sector in October 2022, as one of the most important human capital strategic initiatives for the military industries sector to scholarship Saudi cadres who are graduates of public education and university and employees of military industries sector facilities, and it aims primarily to support operating facilities, In the military industries sector and empowering a promising generation of national competencies to work in the military industries system. The scholarship program focuses on the following:
- Increasing the percentage of people enrolled in the sector and ensuring the availability of the required educational and training specializations.
- Enabling the scholarship person to obtain quality programs, obtain university and postgraduate degrees, and participate in training programs during the study period.
The first edition of the World Defense Exhibition 2022 was launched, with the participation of 600 exhibitors, from 42 countries, in the presence of more than 82 military and defense delegations, and 65 thousand visitors representing 85 countries. The exhibition witnessed the registration of deals and contracts with a total value of 5.9 billion US dollars and the signing of... 22 industrial participation localization agreements with a total value of 2.13 billion US dollars.
The second edition of the World Defense Exhibition 2024 was held over five days, with the participation of 773 exhibitors and 441 official delegations representing 116 countries, and was visited by 106K visitors. 73 agreements were signed, including 17 industrial participation agreements that took place throughout the days of the exhibition, and the second edition of the exhibition concluded with a record signing. 61 purchase contracts worth 26 billion Saudi riyals.
The third edition in 2026 hosted 1,468 exhibitors from 89 countries, 513 official delegations from 121 participating countries with pavilions, and 137,000 visitors, across a total area of 272,800 square meters. The event concluded with recorded purchase contracts valued at $ 8.8 billion.
The program aims to understand the current situation of the military industries through gap analysis and the application of best international practices. In addition, the program includes key incentives such as long-term procurement plans and agreements, prioritizing local companies. Other supporting incentives include:
- Providing necessary financing, exemptions, and tax reductions
- Supplying specialized industrial lands.
- Enhancing workforce efficiency and contributing to reducing its cost
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