Major Contracts, Deals on Day Two of Saudi World Defense Show

The second day of the World Defense Show, founded by Saudi Arabia’s General Authority for Military Industries (GAMI), saw a flurry of deals and contracts announced by local, regional, and international defense companies.
These deals included agreements for manufacturing and localizing defense systems, joint manufacturing ventures, and various partnerships in the defense sector.
These agreements align with Riyadh’s efforts to strengthen military industries by localizing defense manufacturing.
At the exhibition, which concludes on Feb.8, the Saudi Ministry of Investment and the GAMI revealed signing 11 partnership agreements with private companies.
Notable partners include Airbus, Lockheed Martin, Leonardo from Italy, IBM from the US for information technology, and Türkiye’s Rocketsan for weapons manufacturing.
These agreements aim to fulfill strategic objectives for Saudi Arabia’s military industries, such as localizing defense manufacturing, enhancing military readiness, boosting industrial participation, and creating promising investment opportunities.
They also support the goals of the Kingdom’s national transformation plan, “Vision 2030,” aiming to localize 50% of military expenditure by 2030 and increase investment contributions to the gross domestic product.
Under the oversight of Saudi Investment Minister Engineer Khalid Al-Falih and GAMI Governor Engineer Ahmed Al-Ohali, a set of agreements were signed.
These agreements cover important areas like boosting technology transfer, setting up local production lines, and training local talent in the defense sector.
GAMI highlighted that the focus of the exhibition is on showcasing the latest advancements across various defense sectors like land, sea, air, space, and security.
These agreements align with GAMI’s strategy to develop investment in the sector by supporting local content and expanding opportunities for skilled national workers.
The aim is to strengthen Saudi Arabia’s defense capabilities and establish the kingdom as a regional and global hub for defense industries.
On his part, Al-Ohali emphasized that these agreements result from ongoing efforts to develop and localize the military industries, enhancing their competitiveness and workforce confidence.
According to the governor, partnerships with the Saudi Investment Ministry and collaborating companies will contribute to strengthening Saudi Arabia’s military industrial capabilities, promoting strategic independence, and optimizing expenditure efficiency.
Moreover, US weapon maker Lockheed Martin has signed agreements for Saudi Arabian companies to manufacture parts of its Terminal High Altitude Area Defense (THAAD) system.
A statement by Lockheed Martin revealed that these sub-contracts will enhance manufacturing capabilities in Saudi Arabia and transfer expertise to strengthen the country’s defense industry.
The main terms of the THAAD defense system procurement contracts stipulate the localization of work in Saudi Arabia, in line with the priorities of Vision 2030 to develop and localize its military industries.
Saudi Arabia is poised to take advantage of these strategies through qualitative international defense partnerships with Lockheed Martin and other major companies, which are manufacturers of innovative equipment that brings mutual benefits to all the parties involved.
Additionally, state-owned Saudi Arabian Military Industries (SAMI) signed a preliminary agreement with Qatar’s Barzan Holdings.
Barzan explained that the initial agreement with SAMI focuses on joint investment and development.
The deal aims to explore shared interests in defense industries, with both sides committed to boosting their collaboration in the future, sources told Asharq Al-Awsat.
Also at the World Defense Show, Airbus restated its commitment to boosting local skills and expertise in Saudi Arabia and the wider region.
Mikail Houari, President of Airbus in Africa and the Middle East, emphasized that their engagement goes beyond just selling products.
They aim to provide guidance, training, and support, contributing to job creation and sustainable economic growth in the area.
The Korean Aerospace Industries (KAI) plans to expand its presence in the Middle East and Africa.
KAI’s CEO stressed the importance of participating in exhibitions like the World Defense Show to boost the company’s business in these regions.

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.

Major Contracts, Deals on Day Two of Saudi World Defense Show