GCC Defense Market Size Booming to Surpass Value of USD 63 Billion by 2031

Published | 15 September 2025

GCC Defense Market is flourishing primarily due to geopolitical instability, rising defense budgets, military modernization, regional collaborations, advanced technologies, cybersecurity focus, and strategic procurements.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated GCC Defense Market size by value at USD 38.80 billion in 2024. During the forecast period between 2025 and 2031, BlueWeave expects GCC Defense Market size to boom at a significant CAGR of 7.22%, reaching a value of USD 63.20 billion by 2031. The growth of GCC Defense Market is propelled by rising geopolitical tensions, prompting increased military spending across member states. Nations like Saudi Arabia and the UAE are investing heavily in advanced technologies such as missile defense systems, UAVs, and cyber warfare capabilities. Modernization of armed forces, strategic partnerships with global defense contractors, and a growing emphasis on regional security cooperation further fuel the expansion of GCC Defense Market. Additionally, efforts to develop indigenous defense industries and reduce reliance on foreign suppliers are accelerating the market’s long-term growth.  

Opportunity – Development of Local Defense Manufacturing Ecosystems

GCC Defense Market is witnessing strong growth through the development of local manufacturing ecosystems. Major GCC countries like Saudi Arabia and the UAE are investing in indigenous capabilities to reduce reliance on foreign suppliers and boost economic diversification. Initiatives such as SAMI and EDGE Group aim to localize production, enhance technological expertise, and create skilled jobs. This strategic shift strengthens national security, fosters innovation, and positions the region as a competitive player in the global defense industry.

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Weapons & Ammunition Segment Holds Largest Market Share ​

The weapons & ammunition segment accounts for the largest market share of GCC Defense Market, due to a high demand for advanced missile systems, artillery, and precision-guided munitions amid rising regional threats and geopolitical tensions. GCC nations prioritize strategic deterrence and combat readiness, driving substantial investment in firepower capabilities. The segment’s growth is further fueled by modernization programs and partnerships with global defense contractors to enhance military effectiveness.

Impact of Escalating Geopolitical Tensions on GCC Defense Market 

Escalating geopolitical tensions have significantly intensified defense priorities across GCC nations, driving a surge in military spending and strategic modernization. Regional conflicts and security threats have prompted investments in missile defense systems, UAVs, and cybersecurity infrastructure. Countries like Saudi Arabia and the UAE are enhancing domestic production capabilities and forging global partnerships to strengthen deterrence and resilience. This evolving landscape positions the GCC as a critical defense hub, with sustained demand for advanced technologies and a shift toward self-reliant military ecosystems. Hence, intensifying geopolitical tensions across the Middle East region are expected to boost the growth of GCC Defense Market.

Competitive Landscape

GCC Defense Market is highly fragmented, with numerous players serving the market. Major companies dominating the market are Lockheed Martin, BAE Systems, Airbus, Boeing, Northrop Grumman, Thales Group, Leonardo S.p.A., Elbit Systems, Rheinmetall AG, EDGE Group (UAE), and SAMI – Saudi Arabian Military Industries. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge over their competitors in GCC Defense Market.

Don’t miss the business opportunity in GCC Defense Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The report's in-depth analysis provides information about growth potential, upcoming trends, and GCC Defense Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in GCC Defense Market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

Scope of the Report

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