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30 D EF EN S EH ER E W O R L D D E F E N S E S H O W ( W D S ) 2 0 2 4 E D I T I O N

SAUDI ARABIA

General Authority for Military Industries (GAMI): GAMI,
established in 2017, is the regulator, enabler and licensor
of Saudi Arabia’s military industries sector. GAMI propos-
es new policies, strategies, and regulations that are rele-
vant to the military industry and complementary sectors.
It also provides final approval for military procurement of
all defense platforms and services, not just for the MOD.
Saudi Arabian Military Industries (SAMI): SAMI is a state-
owned defense company launched in May 2017 by Saudi
Arabia’s Public Investment Fund to provide military prod-
ucts and services in Saudi Arabia and to reduce the coun-
try’s reliance on foreign purchases of military products.
National Military Industries Sector Strategy
GAMI’s National Military Industries Sector Strategy is com-
prised of three pillars: Military Acquisition, Military Indus-
try, and Military Research & Technology. These pillars
are designed to drive the strategic priorities of strategic
autonomy, military readiness, sustainable local military
industry, interoperability within and across entities, and
efficiency of spending.

Doing Business in Saudi Arabia’s Defense Sector
Saudi Arabia Saudi Arabia’s Procurement Law regulates all government
Saudi Arabia ranked as the fifth-largest defense spend- procurement. The Ministry of Finance is the overarching
er in the world in 2022 behind the United States, China,
Russia, and India. Saudi Arabia imports nearly 80 percent
of its arms from the United States. According to the 2023
budget released by the Saudi Arabia Ministry of Finance
in December 2022, the Kingdom will spend $69 billion in
defense in 2023 – approximately 23% of its total budget,
which increased by 50% from last year’s defense budget.
Saudi Arabia’s defense spending has grown substantially
over the last decade, in part due to a procurement drive
fueled by the war in Yemen. Under the Vision 2030 eco-
nomic diversification program, Saudi Arabia aims to local-
ize 50 percent of its military procurement by 2030 under
the aegis of two military industrial bodies: The General
Authority for Military Industries (GAMI) and Saudi Arabi-
an Military Industries (SAMI), which contracts directly with
foreign companies. SAMI CEO Walid Abukhaled has stated
the company’s goal to become a top 25 defense company
by 2030.
Key Saudi Arabian Defense Entities
Ministry of Defense (MOD): MOD is responsible for Saudi
Arabia’s national security. It includes the Royal Saudi Land
Forces, the Royal Saudi Air Forces, the Royal Saudi Naval
Forces, the Royal Saudi Air Defense Forces, and the Royal
Saudi Strategic Missiles Forces. The Institute of Strategic
Studies estimates that there were roughly 277,000 people
serving across Saudi Arabia’s military branches.