Speaking at the 2024 Local Content Forum just completed in Riyadh, Ahmed Al-Ohali, Governor of the General Authority for Military Industries (GAMI), said Saudi Arabia has localized 19.35% of its military spending.
Governor of the General Authority for Military Industries (GAMI) Ahmad Abdulaziz Al-Ohali stated that the localization rate of military spending has reached 19.35%, compared to 4% in 2018. GAMI’s goal is to reach over 50% localization of government spending on military equipment and services by 2030.
He added that the number of licensed establishments in the military industries sector has increased to 296 by the third quarter of 2024.
Furthermore, GAMI has signed 53 industrial participation agreements valued at $9.3 billion, of which $3.4 billion has been allocated to domestic companies for projects such as unmanned aerial vehicles (UAVs), rapid interceptor boats, and the maintenance of defense systems.
In support of localization, Al-Ohali said GAMI has introduced 11 policies and regulations to enhance governance, build investor confidence, and support local manufacturing and service capabilities, creating numerous high-value job opportunities. The sector’s current contribution to GDP is estimated at $1.3 billion.
A unified platform for military industries intended to automate all services and utilize the latest technological advancements, data science, and artificial intelligence for various tasks, including forecasting demand for military products and services has been launched.
GAMI also collaborates with the General Authority for Defense Development’s (GADD) platform on research and development programs for defense. In addition a human resources strategy for the military industries sector was launched in 2022, This includes the establishment of the National Academy for Military Industries, which trains 2,000 students annually in technical and engineering disciplines.
At the macro level, in H1 2024 Saudi military spending decreased 6.3% is expected to 15.4% compared to the projected spend, totaling $63.7 billion.
