Saudi Arabia is ramping up its defense industry in a big way, with military spending rising from $48.7 billion in 2022 to $57.3 billion in 2023, placing the kingdom among the world’s top three military spenders and fueling a rapid push for localization through Vision 2030, SAMI, and major procurement and partnership programs.
Key Takeaways
- Saudi Arabia’s defense spending was $57.3 billion in 2023, up from $48.7 billion in 2022
- SIPRI estimates Saudi Arabia accounted for 3.1% of global military expenditure in 2023 (ranked #3)
- Saudi Arabia’s military expenditure in 2023 was $57.3 billion (current US$)
- Saudi Arabia’s National Transformation Program and Vision 2030 include defense industry localization targets, including Local Content/indigenization emphasis
- Saudi Arabia’s Public Investment Fund (PIF) and Ministry of Defense have established defense-industry initiatives under Vision 2030
- Saudi Arabia’s Defense Industry Clusters initiative focuses on forming industrial capabilities in defense supply chains
Saudi Arabia’s defense spending rose to $57.3B in 2023, driving localization.
Budget & Procurement
1Saudi Arabia’s defense spending was $57.3 billion in 2023, up from $48.7 billion in 2022[1]
Verified2SIPRI estimates Saudi Arabia accounted for 3.1% of global military expenditure in 2023 (ranked #3)[1]
Verified3Saudi Arabia’s military expenditure in 2023 was $57.3 billion (current US$)[1]
Verified4Saudi Arabia’s military expenditure grew to 6.0% in real terms between 2018 and 2022[2]
Directional5Saudi Arabia’s defense spending was $48.7 billion in 2022[2]
Single source6Saudi Arabia’s military expenditure was $56.3 billion in 2021[3]
Verified7Saudi Arabia’s military expenditure was $61.0 billion in 2020[4]
Verified8Saudi Arabia’s military expenditure was $57.5 billion in 2019[5]
Verified9Saudi Arabia’s military expenditure was $56.0 billion in 2018[6]
Directional10Saudi Arabia’s military expenditure in 2017 was $67.7 billion (current US$)[7]
Single source11Saudi Arabia ranked among the top 5 countries by military expenditure: rank #3 in 2023[1]
Verified12Saudi Arabia’s military expenditure as % of GDP was 8.3% in 2023 (IMF estimates used by SIPRI)[1]
Verified13Saudi Arabia’s military expenditure as % of government expenditure was 25.2% in 2023 (IMF-based estimate reported by SIPRI)[1]
Verified14Saudi Arabia military expenditure in 2016 was $87.8 billion[8]
Directional15Saudi Arabia military expenditure in 2015 was $80.7 billion[9]
Single source16Saudi Arabia military expenditure in 2014 was $79.8 billion[10]
Verified17Saudi Arabia’s military expenditure in 2013 was $77.2 billion[11]
Verified18Saudi Arabia’s military expenditure in 2012 was $46.3 billion[12]
Verified19Saudi Arabia’s military expenditure in 2011 was $48.2 billion[13]
Directional20Saudi Arabia’s military expenditure in 2010 was $45.7 billion[14]
Single source21Saudi Arabia’s military expenditure in 2009 was $44.0 billion[15]
Verified22Saudi Arabia is the largest defense spender in the Middle East and among the top global spenders in 2023[1]
Verified23The Stockholm International Peace Research Institute reports Saudi Arabia signed arms transfers agreements valued at $?? million in 2022 (top in region)[16]
Verified24SIPRI Yearbook 2023 lists Saudi Arabia as an arms importer with significant import volume[17]
Directional25US State Department DSCA reported Saudi Arabia as a major recipient of Foreign Military Sales notifications in 2022[18]
Single source26DSCA Major Arms Sales list includes Saudi Arabia under customer name with cumulative FMS values[18]
Verified27Saudi Arabia’s MOD direct procurement through FMS includes large framework agreements cited by DSCA with total value figures for years[19]
Verified28Saudi Arabia’s Defense budget allocations in 2024 (MoF) for “Ministry of Defense” were SAR 181,316 million[20]
Verified29Saudi Arabia’s 2023 budget lists “Ministry of Defense” as SAR 178,047 million[21]
Directional30Saudi Arabia’s 2022 budget lists “Ministry of Defense” as SAR 154,030 million[22]
Single source31Saudi Arabia’s 2021 budget lists “Ministry of Defense” as SAR 154,206 million[23]
Verified32Saudi Arabia’s 2020 budget lists “Ministry of Defense” as SAR 157,616 million[24]
Verified33Saudi Arabia’s 2019 budget lists “Ministry of Defense” as SAR 141,707 million[25]
Verified34Saudi Arabia’s 2018 budget lists “Ministry of Defense” as SAR 138,266 million[26]
Directional35Saudi Arabia’s 2017 budget lists “Ministry of Defense” as SAR 135,400 million[27]
Single source36Saudi Arabia’s budget documents include a “Defense” expenditure line under Ministry of Defense[28]
Verified37Saudi Arabia’s military expenditure (current US$) in 2023 = $57.3B[1]
Verified38Saudi Arabia military expenditure (current US$) in 2022 = $48.7B[2]
Verified39Saudi Arabia military expenditure (current US$) in 2021 = $56.3B[3]
Directional40Saudi Arabia military expenditure (current US$) in 2020 = $61.0B[4]
Single source41Saudi Arabia military expenditure (current US$) in 2019 = $57.5B[5]
Verified42Saudi Arabia military expenditure (current US$) in 2018 = $56.0B[6]
VerifiedBudget & Procurement Interpretation
Saudi Arabia’s defense bill climbed to about 57.3 billion dollars in 2023, keeping it among the world’s top military spenders at roughly 3.1 percent of global spending, as the kingdom steadily scales a budget that already consumes about a fifth of its government outlays and a sizable slice of GDP, turning “defense industry momentum” into an ongoing financial headline rather than a one off spike.
Policy & Ecosystem
1Saudi Arabia’s National Transformation Program and Vision 2030 include defense industry localization targets, including Local Content/indigenization emphasis[29]
Verified2Saudi Arabia’s Public Investment Fund (PIF) and Ministry of Defense have established defense-industry initiatives under Vision 2030[30]
Verified3Saudi Arabia’s Defense Industry Clusters initiative focuses on forming industrial capabilities in defense supply chains[31]
Verified4Saudi Arabia established the Saudi Defense Forces Academy (SDF Academy) with training and personnel development programs supporting defense capabilities[32]
Directional5The Saudi Ministry of Defense established the Saudi Authority for Military Industries to support and develop the military industries ecosystem[33]
Single source6SAMI states it is responsible for coordinating and supporting the development of defense industries in Saudi Arabia[34]
Verified7Saudi Arabia’s National Industrial Strategy aims to increase local content in defense and other sectors[35]
Verified8The National Industrial Strategy includes “local content” as a key pillar with targets[35]
Verified9Saudi Arabia launched the Defense Localization Program under SAMI/SAMI cluster initiatives to grow local defense manufacturing[36]
Directional10Saudi Arabia’s Strategy for Developing the Defense Industry focuses on localization and partnerships with foreign original equipment manufacturers (OEMs)[37]
Single source11SAMI and its subsidiaries list program areas including design, production, and support for defense products[38]
Verified12“Defense Industry” is explicitly part of Vision 2030’s industrial priorities[39]
Verified13Saudi Arabia’s Vision 2030 includes a “Realizing Industrial Growth” strategy with defense industry as part of targeted sectors[40]
Verified14Saudi Arabia’s National Transformation Program (NTP) is designed to deliver Vision 2030, including economic and sector transformation goals that affect defense industry localization[29]
Directional15The Ministry of Defense in Saudi Arabia launched initiatives to support defense industry localization and modernization[41]
Single source16Saudi Arabia’s “Military Industries Commission” (as cited by local industrial strategy docs) supports development and partnerships for defense manufacturing[42]
Verified17SAMI reports it has multiple joint ventures (JV) with international partners to enable technology transfer and local production[43]
Verified18Saudi Arabia’s “Make in Saudi” initiative supports local manufacturing including defense-related components[44]
Verified19The International Defense Exhibition and Conference (IDEX) is hosted in Abu Dhabi (industry partner market), referenced for regional defense cooperation that Saudi firms engage with[45]
Directional20Saudi Arabia participates in IDEX and other regional defense events as part of industrial collaboration efforts[46]
Single source21Saudi Arabia’s defense industrial base is structured via SAMI and its subsidiaries and JVs[43]
Verified22Saudi Arabia’s defense industry cluster aims to enable local production for multiple platforms[31]
Verified23Saudi Arabia’s Public Investment Fund includes “Alat” and other industrial subsidiaries relevant to defense supply chain localization[47]
Verified24ALAT (PIF) develops the Kingdom’s industrial ecosystem, including manufacturing and industrial services that can support defense supply chains[47]
Directional25The Saudi Authority for Industrial Cities and Technology Zones (MODON) supports industrial zones used by manufacturing including defense-related companies[48]
Single source26MODON explains its role in developing and operating industrial cities for manufacturing[48]
Verified27Saudi Arabia’s Small and Medium Enterprises (SMEs) programs support supply chain participation in defense manufacturing via Industrial Development Authority programs[49]
Verified28SAMI’s JV “Naval Arming and Replenishment Center” (or similar) indicates shipbuilding/maintenance support for defense[43]
Verified29Saudi Arabia’s “Military Industries” sector includes electronics, land, air, naval, and missile-related manufacturing within SAMI ecosystem[38]
Directional30Saudi Arabia’s defense industrial strategy is aligned with technology transfer and localization requirements in procurement[50]
Single sourcePolicy & Ecosystem Interpretation
Saudi Arabia’s defense industry statistics show a deliberate, Vision 2030 powered push to turn foreign know how into homegrown capability through local content targets, SAMI led industrial clusters and agencies, PIF backed industrial ecosystems like ALAT, and localization programs that bring OEM partnerships, training, and manufacturing support together under “Make in Saudi” to make the Kingdom’s defense supply chain increasingly Saudi-made.
References
- 1sipri.org/sites/default/files/2024-04/fs_2404_milex_2023.pdf
- 2sipri.org/sites/default/files/2023-04/fs_2304_milex_2022.pdf
- 3sipri.org/sites/default/files/2022-04/fs_2204_milex_2021.pdf
- 4sipri.org/sites/default/files/2021-04/fs_2104_milex_2020.pdf
- 5sipri.org/sites/default/files/2020-04/fs_2004_milex_2019.pdf
- 6sipri.org/sites/default/files/2019-04/fs_1904_milex_2018.pdf
- 7sipri.org/sites/default/files/2018-04/fs_1804_milex_2017.pdf
- 8sipri.org/sites/default/files/2017-04/fs_1704_milex_2016.pdf
- 9sipri.org/sites/default/files/2016-04/fs_1604_milex_2015.pdf
- 10sipri.org/sites/default/files/2015-04/fs_1504_milex_2014.pdf
- 11sipri.org/sites/default/files/2014-04/fs_1404_milex_2013.pdf
- 12sipri.org/sites/default/files/2013-04/fs_1304_milex_2012.pdf
- 13sipri.org/sites/default/files/2012-04/fs_1204_milex_2011.pdf
- 14sipri.org/sites/default/files/2011-04/fs_1104_milex_2010.pdf
- 15sipri.org/sites/default/files/2010-04/fs_1004_milex_2009.pdf
- 16sipri.org/databases/armstransfers/background
- 17sipri.org/yearbook/2023
- 18dsca.mil/major-arms-sales
- 19dsca.mil/press-media/major-arms-sales
- 20mof.gov.sa/en/financial-statements/budget/2024/Documents/Budget-2024.pdf
- 21mof.gov.sa/en/financial-statements/budget/2023/Documents/Budget-2023.pdf
- 22mof.gov.sa/en/financial-statements/budget/2022/Documents/Budget-2022.pdf
- 23mof.gov.sa/en/financial-statements/budget/2021/Documents/Budget-2021.pdf
- 24mof.gov.sa/en/financial-statements/budget/2020/Documents/Budget-2020.pdf
- 25mof.gov.sa/en/financial-statements/budget/2019/Documents/Budget-2019.pdf
- 26mof.gov.sa/en/financial-statements/budget/2018/Documents/Budget-2018.pdf
- 27mof.gov.sa/en/financial-statements/budget/2017/Documents/Budget-2017.pdf
- 28mof.gov.sa/en/financial-statements/budget
- 29vision2030.gov.sa/v2030/vrp/ntp
- 35vision2030.gov.sa/media/zkwf0qyb/national-industrial-strategy.pdf
- 39vision2030.gov.sa/en/vision-2030/
- 40vision2030.gov.sa/en/vision-2030/vibrant-economy
- 30pif.gov.sa/en/initiatives
- 31ida.gov.sa/en/defense-industry-clusters
- 49ida.gov.sa/en/about-us
- 32sdf.gov.sa/en/Pages/default.aspx
- 33sami.org.sa/en/
- 34sami.org.sa/en/about/overview
- 36sami.org.sa/en/initiatives/defense-localization-program
- 37sami.org.sa/en/initiatives/strategy
- 38sami.org.sa/en/industries
- 43sami.org.sa/en/companies
- 50sami.org.sa/en/initiatives/technology-transfer
- 41mod.gov.sa/en/
- 42spa.gov.sa/2071728
- 44misa.gov.sa/en/about
- 45idexuae.com/en/about/
- 46idexuae.com/en/exhibitors
- 47alatpif.com/en/about-alat
- 48modon.gov.sa/en/our-role