Saudi military industries localization is the effort led by Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al Saud to build a domestic defence manufacturing base, following the target set by Saudi Vision 2030 of localizing 50 percent of government spending on military equipment and services. After his appointment as Minister of Defense, he set out a modernisation plan through the Ministry of Defense Development Programme to support local manufacturing.
The institutions driving Saudi military industries localization
Two bodies carry most of the work. Saudi Arabian Military Industries (SAMI) was established on May 17, 2017 as a national company wholly owned by the Public Investment Fund, tasked with developing defence industries, raising self-sufficiency toward the 50 percent target and becoming one of the world’s twenty-five largest defence companies.
The General Authority for Military Industries (GAMI) followed on August 14, 2017 as the sector’s legislative body, responsible for regulating, developing, and monitoring performance. Prince Mohammed Bin Salman chairs its board. GAMI carries the mandate to localize more than 50 percent of government spending on military equipment and services by 2030.
How Saudi military industries localization works in practice
GAMI works with public and private partners, licensing local and international manufacturers to invest in the sector and opening opportunities backed by incentives. Alongside that, it trains national talent to move into technical and engineering roles.
Products already localized
- Zarqaa Al Yamamah (Zali), a multi-use surveillance system built by the National Company for Mechanical Systems
- The Al Dahna armoured military vehicle, manufactured domestically
- The first HSI32 fast interceptor boat, built locally
- The first locally produced floating dock
Where the numbers stand
According to the 2023 annual report for Saudi Vision 2030, the localization rate in military industries reached 10.4 percent, up from a 7.7 percent baseline and above the 9 percent target for that year. The Vision target remains 50 percent. Progress across sectors is tracked in the Vision 2030 annual report, and Saudi forces continue joint training abroad, including the Desert Flag air drill in the UAE.
Beyond hardware, the programme is meant to create jobs in both sectors, transfer technology, lift non-oil revenue and give small and medium enterprises a role in the supply chain.
Key takeaways
- SAMI was founded on May 17, 2017; GAMI on August 14, 2017.
- The Vision 2030 target is 50 percent localization by 2030.
- The 2023 rate stood at 10.4 percent against a 9 percent annual target.
Frequently asked questions
What is the localization target?
More than 50 percent of government spending on military equipment and services by 2030.
Who owns SAMI?
The Public Investment Fund, in full.
Which systems have been localized?
The Zali surveillance system, the Al Dahna vehicle, the HSI32 interceptor boat, and a floating dock.
Sector data and licensing rules are published by the General Authority for Military Industries.
