In a strategic move aimed at enhancing local capabilities and supporting the national economy, His Excellency the Minister of Industry and Mineral Resources, Mr. Bandar bin Ibrahim Al-Khorayef, chaired a roundtable meeting that included a number of leading national companies in the military industries sector. This important meeting was held on the sidelines of the World Defense Show in Riyadh, the premier international platform that brings together leaders and experts in the defense and security sector from around the world.
The meeting discussed initiatives led by the industrial and mining sector to accelerate the localization of military industries, transfer the latest global technologies, and stimulate local investment in this vital sector. This momentum comes within the framework of national efforts to build a robust industrial base for military manufacturing, directly supporting the objectives of the Kingdom's Vision 2030, which aims to localize more than 50% of total government spending on military equipment and services by 2030.
Strategic background: Vision 2030 as a driving force
The drive to localize military industries is a cornerstone of Saudi Arabia’s Vision 2030, launched in 2016. Alongside its goals of diversifying the economy away from oil dependence, the Vision aims to achieve strategic independence in the defense and security sectors. To this end, key regulatory and operational bodies have been established, most notably the General Authority for Military Industries (GAMI), established in 2017 to regulate and empower the sector, and the Saudi Arabian Military Industries Company (SAMI), owned by the Public Investment Fund, which plays a key role in developing local manufacturing capabilities.
The importance of the event and its expected impact
This meeting is of paramount importance on several levels. Domestically, localizing military industries will create thousands of high-quality jobs for citizens in advanced engineering and technology fields, and will also enhance knowledge transfer and the development of national expertise. Furthermore, it will stimulate the growth of an integrated local supply chain, supporting small and medium-sized enterprises and increasing local content in the industry.
At the regional and international levels, the Kingdom’s success in building a strong domestic defense sector enhances its strategic independence and reduces reliance on external suppliers, thus solidifying its position as an influential regional power. This trend is also changing the dynamics of the global defense market, transforming the Kingdom from a major importer into a potential industrial partner, producer, and exporter in the future, opening new avenues for international partnerships based on joint investment and technology transfer.
The meeting emphasized the integrated government efforts to address challenges facing investors and reviewed mechanisms to support and empower local manufacturers. National companies, in turn, presented their views and proposals for developing the sector and enhancing the attractiveness of its investment environment, ensuring the sustainable growth of the military industries sector and maximizing its impact on achieving national security and economic development goals.
