The Kingdom is one of the highest spending countries on the military sector. Massive deals to secure military equipment and achieve the security of the country and its people are met with limited local production compared to the volume of spending, which means reliance on foreign imports—a matter not without security and strategic risks, financial burdens, and depriving the economy of the industrial opportunities that the sector can provide.

Possessing a military manufacturing base is a strategic priority supporting national security, reducing reliance on foreign countries for arms, stimulating the national economy, and achieving the goals of Vision 2030, including diversifying economic sources, localizing 50% of military spending, transferring technology and creating jobs, opening new horizons for the private sector, and redirecting a significant part of massive armament spending into the local economy to enhance growth and increase the contribution of the military industries sector to the gross domestic product.

To localize the military industries, the General Authority for Military Industries was established to regulate the sector according to a national strategy and specific targets, which helped build it on a legislative and regulatory base supportive of the sector, stimulating investments, and directing the required outputs.

Over the past years, the General Authority for Military Industries has achieved important accomplishments in both legislative and regulatory aspects, worked to improve the investment environment, and managed to raise the localization rate of military spending to about 25%, marking a real launch for the sector.

Announcement

Recently, Bandar Al-Khorayef was assigned to serve as the Governor of the General Authority for Military Industries in addition to his current role. This is a notable move that may be interpreted as a temporary assignment, or perhaps reflects a strategic vision aimed at transferring expertise and successes achieved in the industrial sector to the military industries sector, and accelerating the desired results, especially as the deadline to localize 50% of military spending by 2030 approaches.

Announcement

Minister Bandar Al-Khorayef is no stranger to the Authority; he was a member of its board of directors, and thus he is close to it and fully aware of its challenges. With geopolitical changes, an urgent need has emerged to accelerate the development of the sector and expand the localization of modern defense industries technologies in particular, and perhaps replicate the success achieved in the Ministry of Industry for the military industries sector, which is a strategic goal and a pillar of national security.

Al-Khorayef and the work team at the Ministry of Industry, with the support and guidance of the leadership, succeeded in enhancing the role of the industrial sector, making industry one of the most important sectors achieving the goals of the Vision. The industrial sector's contribution to GDP rose to about SAR 502 billion, industrial exports in 2025 amounted to SAR 167.29 billion, investment flows exceeded SAR 76 billion in the same year, the number of factories in the Kingdom grew by 79% from 7,206 to 12,900, more than 250,000 quality jobs were created for Saudis in advanced technical and engineering sectors, Saudi exports recorded an unprecedented historical figure of SAR 624 billion in 2025, and the local content ratio in government procurement rose to 51% by the end of 2025. In addition, the Ministry was able to complete the legislative infrastructure that forms the basis for industrial investment, addressed many challenges facing the private sector, foremost of which are high costs including the cost of the expat levy, enhanced the global presence of the Saudi product, established its global identity "Made in Saudi Arabia," and launched the industrial transformation train toward automation and technological expansion.

Mathematics

Success can be transferred to the most important strategic sectors that require a lot of executive work to reinforce the gains achieved within them and address obstacles that limit further growth, development, and expansion in the sector. Accelerating growth in the military industries sector, enhancing its competitiveness, strengthening its ability to create global partnerships and attract investments are among the most important requirements of the current stage. Expanding military industries and their modern technologies, and emulating the qualitative development seen globally in the industry, are among the targets to be achieved over the next four years—a short time frame that requires intensive efforts, an ambitious executive vision, expertise in forging international partnerships, and benefiting from international changes to attract global talents seeking a supportive environment after losing their previous working environment. Opportunities are emerging in the global military industries sector, and important partnerships can be made to develop the sector, enhance its growth and outputs, build a private sector capable of production and competition, and attract specialized global talents to create an integrated Saudi industrial system that meets localization targets. This requires seizing opportunities, intensifying executive efforts, accelerating their pace, and improving the quality of work to achieve the goals of the Vision and national security.

Source: Al-Jazeera

Advertising material

Advertising material

Disclaimer: All published articles represent the opinion of their authors only.