Localization in Saudi military industries rises to 19.35%
Saudi Gazette report
RIYADH —The localization rate of military industries in Saudi Arabia rose to 19.35% in 2024, exceeding the 2023 target of approximately 12.5%, according to the localization rate index, one of the key indicators of Saudi's Vision 2030.
The military industries aim to achieve a 50% localization rate by 2030, a step that reflects rapid progress. The index recorded a remarkable increase between 2021 and 2023, increasing by more than 12 percentage points in two years, exceeding the annual targets set for 2022 and 2023.
The Governor of the General Authority for Military Industries(GAMI), Eng. Ahmed Al-Ohali, said: "This progress is the result of the efforts made by the Authority and its partners in the military, security, and private sectors, since its establishment in 2017, to enact regulations and legislation related to the sector, enabling investors to engage in military industries activities, in addition to the supply chain project aimed at localizing more military spending and supporting the national economy."
Saudi Arabia's military spending has grown annually since 1960, reaching approximately 4.5%, reaching $75.8 billion by 2024, according to a previous statement by GAMI. This makes Saudi Arabia the 5th -largest country in the world and the first in the Arab world in terms of military spending.
Al-Ohali's remarks came during his speech at the 25th Global Defense and Aerospace Strategies Conference held in Antalya, Turkey.
The conference was organized by the Defense, Aerospace and Defense Industries Exporters Association (DASI) and the Presidency of Defense Industries of Turkey (SSB).
The event was attended by Professor Haluk Görgün, Chairman of the Turkish Defense Industries Authority (SSB), and was attended by CEOs and business development managers representing major industrial and defense companies from around the world.
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