RIAYDH — Saudi Arabia’s localization of military spending reached 27.30 percent by the end of 2025, exceeding the annual target of 24 percent, according to figures announced by the General Authority for Military Industries (GAMI).
The figures, unveiled during the Military Industries Forum, showed that the localization rate increased from 20 percent in 2024 to 27.30 percent in 2025, surpassing the annual target by 3.30 percentage points.
The authority’s figures also showed that the localization of military spending increased from 4 percent in 2018 to 27.30 percent in 2025.
The rate reached 6 percent in 2019, followed by 7 percent in 2020, 9 percent in 2021, 10 percent in 2022, 15 percent in 2023 and 20 percent in 2024.
The figures also showed that the growth rate of local content in military spending reached 40.91 percent.
In terms of economic impact, the authority reported a contribution of SR7.468 billion to the Kingdom’s gross domestic product (GDP), alongside a contribution of SR5.243 billion to employment.
GAMI highlighted the continued efforts to increase the localization of military spending, with the Kingdom targeting a 50 percent localization rate by 2030.
Source: Saudi Gazette