The General Authority for Military Industries (GAMI) announced that Saudi Arabia has increased the localization of its military spending to 24.89% by the end of 2024, underscoring continued progress toward the Kingdom’s goal of exceeding 50 percent by 2030.
The announcement was made during the Annual Military Industries Sector Meeting in Riyadh, organized by GAMI under the patronage of its governor, Ahmad bin Abdulaziz Al-Ohali, with wide participation from government entities, private firms, and local and international defense companies.
Al-Ohali said in a speech that the achievement is a pivotal milestone in developing the Kingdom’s defense industries, made possible through the support of King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman, who also serves as prime minister and chairman of GAMI’s board.
He explained that the sectoral strategy prioritizes building a sustainable local sector with security, developmental, and economic impacts through unified governance, legislative enablers, investment incentives, empowerment of supply chains and small and medium enterprises, and development of national competencies.
He revealed the “National Platform for Military Industries” to provide easy access to sector programs and announced the launch of the “Localization Excellence Award” to encourage military and security entities and industrial companies to adopt best practices and increase local content.
The authority stated that activating the framework agreements for military procurement was introduced to enable beneficiary entities to purchase directly from industrial investors.
This mechanism aims to achieve spending efficiency, increase localization rates, improve product and service quality, unify prices, save time in procurement procedures, and issue direct purchase orders within a defined price range for periods of up to seven years.
According to information shared during the meeting, six framework agreements have been implemented with relevant entities, resulting in purchase orders worth 2.8 billion riyals ($746 million) over four years. These covered areas such as ammunition, systems, equipment, communications, and military devices.
To enhance transparency and accelerate procedural cycles, the authority has made available the “National Platform for Military Industries,” which provides programs, guides, and instructions for investors and suppliers.
It also announced the launch of the “Localization Excellence Award” to honor military entities and industrial organizations that make a significant contribution to local content and adopt best practices.
