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ment announced that by 2024, all international companies Opportunities
would be limited in doing business with the government GAMI is focusing its localization efforts on land-based sys-
unless their regional headquarters are located in Saudi tems as they are generally easier to produce. Air and air
Arabia. However, companies pursuing tenders not con- defense will remain a GAMI priority with especially strong
tained within the Etimad Portal, such as within GAMI’s demand for aircraft parts. According to Arab news, the
Military Industry Marketplace, should verify requirements authority’s ambition to localize more than 50 percent of
with the relevant authority. Saudi Arabia’s defense expenditure has led to a supply
chain localization program identifying more than 70 in-
Those wishing to start a business in Saudi Arabia must ob- vestment opportunities in the defense sector. According
tain the appropriate license from the Ministry of Invest- to the credit ratings company Fitch, there will be strong
ment. Additionally, companies must also ensure they have Saudi demand across all segments of the industry includ-
the appropriate GAMI permits and licenses. GAMI has ing for ground and air equipment, naval and air defense
streamlined its permitting and licensing processes, and capabilities, cybersecurity, C4ISR equipment, UAVs, air-
now allows foreign companies full ownership of foreign craft engines, Tactical Communications Systems, MRO
investments. According to H.E. GAMI Governor Ahmad capabilities, rotorcraft capabilities, Military Fixed-Wing
Al Ohali, localization in the defense sector stands at 12.6 Aircraft, and structural component manufacturing.
percent with a target of 50 percent by 2030. To apply for a Defense Oriented Issues
military industrial license, visit licensing.gami.gov.sa. Saudi Arabia has the largest and most well-equipped
In August 2021, GAMI launched its Military Industry Mar- armed forces among the Gulf Cooperation Council (GCC)
ketplace, an online platform designed to help connect members. Challenges have emerged in the effective uti-
companies that have been authorized and licensed by lization of precision airpower, air-ground coordination,
GAMI to work in the military sector. The platform lists and logistical support. Furthermore, the Kingdom has
opportunities for registered users, to help with the iden- faced vulnerabilities in its air and missile defense capabil-
tification of work required and the transfer of workshare ities due to cruise missile and UAV attacks on its oil infra-
and technology. structure.

Army
Active 257,000 (Army 75,000 - Navy 13,500 - Air 20,000 - Air Defence 16,000 - Strategic Missile Forces 2,500 - National
Guard (SANG) 130,000) Gendarmerie & Paramilitary 24,500 Note: SANG also has an irregular force (Fowj), primarily Bed-
ouin tribal volunteers, with a total strength of approximately 25,000
Real GDP per capita Military Expenditures Defense Budget per year
$44,300 (2021 est.) 6% of GDP (2022 est.) $71.83 billion (2024 expected)
$42,900 (2020 est.) 6% of GDP (2021 est.) $69.16 billion (2023 est)
$45,000 (2019 est.) 8% of GDP (2020 est.) $60.88 billion (2022)
8.8% of GDP (2019 est.) $55.56 billion (2021)
10% of GDP (2018 est.) $64.56 billion (2020)
$65.36 billion (2019)
$74.61 billion (2018)

SOURCE: THE MILITARY BALANCE 2023 – CIA THE WORLD FACTBOOK –INTERNATIONAL TRADE ADMINISTRATION OF
US DEPARTMENT OF COMMERCE – SIPRI – KPMG – THE WORLD BANK –MINISTRY OF FINANCE OF SAUDI ARABIA