Saudi Arabia, the largest economy in the Arab world, is investing heavily in the development of its defense industry, transforming its geopolitical role into that of a regional superpower.

Spearheaded by the Saudi Arabian Military Industries (SAMI) and guided by the Vision 2030 strategy, the country aims to achieve defense self-sufficiency, bolster national security, and reduce reliance on foreign powers. This ambitious plan marks a new era for the Middle East.

Saudi Arabia has emerged as one of the strongest players in the global defense industry, ranking sixth in military spending in 2013 with a budget of $67 billion—equivalent to 9% of its GDP. By 2023, expenditures had risen by 50%, reaching $69 billion, according to SIPRI. This increase is part of the Vision 2030 program, which seeks to reduce dependence on foreign suppliers and localize 50% of defense equipment production by 2030.

This program strengthens national security while creating jobs and promoting economic diversification, gradually reducing reliance on oil revenues.

Central to this effort are the General Authority for Military Industries (GAMI) and the Saudi Arabian Military Industries (SAMI). Established in 2017, GAMI serves as the regulatory body overseeing the initiative and coordinating the development of the defense sector, while SAMI aims to become one of the top 25 global defense companies by 2030.

SAMI has forged significant partnerships with international giants like Lockheed Martin and Airbus to develop local production capabilities. For instance, through its collaboration with Lockheed Martin, SAMI will manufacture launchers for the THAAD system and establish a repair center for the Sniper-ATP targeting pod—enhancing Saudi Arabia’s autonomy in critical technologies.

Saudi Arabia’s Defense Industry in a New Era: The Vision 2030 Strategy

Through the Saudi Arabian Military Industries (SAMI) and the broader strategic framework of Vision 2030, Saudi Arabia has developed a dynamic and rapidly evolving defense industry, aiming to locally produce at least 50% of its defense equipment by 2030. This highly ambitious endeavor seeks not only to achieve defense autonomy for the Kingdom but also to establish an independent economic foundation, less reliant on oil revenues, which will not last forever.

SAMI, founded in 2017 under the auspices of the Public Investment Fund (PIF), aspires to rank among the top 25 global defense companies by the end of the decade. By developing and producing equipment that strengthens national security, SAMI aims to reduce dependence on foreign supplies, enhance domestic defense capabilities, and create over 40,000 new jobs.

A key aspect of this transformation is the production of advanced military equipment within the Kingdom. For example, SAMI has been instrumental in developing MRAP vehicles like the Al-Masmak and Tuwaiq 2, which are designed to withstand mine explosions and ambushes, offering enhanced protection for Saudi troops. Additionally, SAMI’s subsidiary, SAMI-AEC, has partnered with Lockheed Martin to establish the Middle East’s premier repair facility for the Sniper Advanced Targeting Pod—a critical component for precision strikes.

This collaboration not only boosts local expertise but also positions Saudi Arabia as a hub for defense technology in the region.

Furthermore, Vision 2030 emphasizes innovation and international cooperation. In early 2024, Saudi Arabia strengthened its defense ties with South Korea and India, focusing on technology transfer, joint military exercises, and the development of autonomous systems, cybersecurity solutions, and advanced weaponry.

These partnerships align with GAMI’s goal of localizing 50% of military spending by 2030, fostering self-reliance while attracting global defense manufacturers to the Kingdom. For instance, a 30-year tax relief incentive for companies establishing regional headquarters in Riyadh has drawn major players like Lockheed Martin and Boeing to set up operations in Saudi Arabia.

Beyond equipment production, Vision 2030 also prioritizes human capital development. The establishment of the National Academy of Military Industries in 2022, overseen by GAMI, has trained thousands of Saudi engineers and technicians—ensuring the Kingdom has the skilled workforce needed to sustain its defense ambitions.

This holistic approach—combining technology, partnerships, and education—underscores Saudi Arabia’s commitment to becoming a global leader in the defense sector while securing its future in a post-oil economy.