Report Overview

Saudi Arabia Defense Market – Industry Trends & Forecast Report, 2031

Saudi Arabia Defense Market size was estimated at USD 43.5 billion in 2024. During the forecast period between 2025 and 2031, Saudi Arabia Defense Market size is projected to grow at a CAGR of 4.75% reaching a value of USD 60.2 billion by 2031. Prominent drivers of the market include the country's strategic focus on military modernization, technological advancement, and defense sector localization. As one of the world’s largest defense spenders, Saudi Arabia continues to allocate a significant portion of its national budget toward enhancing military capabilities and regional security. Under Vision 2030, the kingdom aims to boost local defense procurement from 2% to 50%, leading to a surge in domestic and international collaborations. Notable initiatives include a 2024 agreement with Leonardo for joint development in aerospace and cross-domain defense technologies. Saudi Arabia is also expanding its military workforce and prioritizing advanced cybersecurity, digital transformation, and autonomous defense systems. Strategic partnerships with countries such as South Korea and India are further strengthening its defense industrial base, reinforcing its position as a growing hub for defense innovation in the Middle East.

Defense – Overview

Defense refers to the measures and strategies implemented by a nation to protect its sovereignty, territorial integrity, and national interests from external threats or aggression. It encompasses military forces, intelligence operations, cybersecurity, and strategic planning aimed at deterrence and preparedness. Defense also includes the development and maintenance of equipment, infrastructure, and alliances to ensure national security.

Saudi Arabia Defense Market

Growth Drivers

Vision 2030 Initiative

Saudi Arabia’s Vision 2030 initiative is a major catalyst for the country’s defense market transformation. With the aim to localize 50% of all defense spending by 2030, the strategy is to reshape the landscape of military procurement and industrial development. Under this initiative, the Kingdom is investing in developing its defense manufacturing capabilities, enhancing human capital, and modernizing defense institutions. Central to this effort is the General Authority for Military Industries (GAMI), which has streamlined licensing for foreign and local defense companies, allowing for 100% foreign ownership and encouraging direct investment. As of mid-2022, GAMI had issued 291 new licenses—a 195% increase from the previous year. Additionally, the launch of platforms like the Military Industry Marketplace highlights Saudi Arabia’s commitment to transparency and opportunity creation for global partners. Vision 2030 has also led to the creation of 74 identified investment opportunities in military supply chains, 30 of which are prioritized and account for 80% of future procurement. These developments are accelerating localization, driving defense sector employment, and laying the groundwork for a sustainable military industrial base that supports national economic diversification.

Challenges

Dependency on Foreign Suppliers

Saudi Arabia’s heavy reliance on foreign suppliers poses a significant restraint on the growth of its defense market. Despite ongoing efforts to localize military production under Vision 2030, around 80% of the country’s defense equipment is still imported, primarily from the United States. This dependency limits domestic manufacturing capabilities, delays technology transfer, and makes the sector vulnerable to global political shifts and supply chain disruptions. Moreover, reliance on external partners can hinder self-sufficiency goals and inflate procurement costs. These challenges highlight the need for accelerated development of indigenous defense industries to achieve long-term stability and strategic autonomy.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Defense Market

Escalating geopolitical tensions could significantly impact Saudi Arabia Defense Market. Regional instability, particularly in the Middle East, drives increased defense spending to bolster national security and military readiness. Ongoing conflicts, such as the Yemen war and strained relations with Iran, compel Saudi Arabia to invest heavily in advanced weaponry, surveillance systems, and cybersecurity solutions. However, heightened tensions can also disrupt global supply chains and delay procurement from foreign suppliers, affecting project timelines. Additionally, political alliances may influence defense partnerships and technology access. While tensions stimulate market growth, they also underline the need for a resilient, self-reliant defense infrastructure in the Kingdom.

Saudi Arabia Defense Market

Segmental Coverage

Saudi Arabia Defense Market – By Platform

Based on platform, Saudi Arabia Defense Market is divided into Air-based Systems, Land-based Systems, and Naval Systems segments. The air-based systems segment holds the highest share in Saudi Arabia Defense Market by platform. The prominence is attributed to the Royal Saudi Air Force's substantial investments in modernizing its aerial capabilities, including the procurement of advanced fighter aircraft like the Eurofighter Typhoon and F-15 variants. Additionally, the focus on enhancing air defense systems and integrating cutting-edge technologies underscores the strategic priority placed on air superiority. While Land-based and Naval Systems are also receiving attention, the scale and scope of air-based initiatives position this segment at the forefront of the Kingdom's defense strategy.​

Saudi Arabia Defense Market – By Type

By type, Saudi Arabia Defense Market is divided into Weapons & Ammunition, Communication Systems, Radar & Surveillance Systems, Electronic Warfare Systems, and Cybersecurity & Defense Tech segments. The communication systems segment is expected to maintain dominance by type during the forecast period. It is driven by Saudi Arabia’s strategic focus on enhancing secure and efficient military communication networks to ensure seamless coordination among defense units. The government is actively investing in advanced technologies such as encrypted communication systems, satellite-based connectivity, and network-centric warfare solutions. Moreover, the Kingdom's broader emphasis on cybersecurity and digital modernization in defense operations reinforces this trend. Initiatives to boost local manufacturing capabilities through collaborations with global defense technology providers further support long-term growth, reflecting Saudi Arabia’s aim to build a self-reliant and technologically advanced defense sector.

Saudi Arabia Defense Market – By End User

On the basis of end user, Saudi Arabia Defense Market is segmented into Army, Air Force, Navy, Special Security Forces, and Border Guards.

Competitive Landscape

Major players operating in Saudi Arabia Defense Market include Saudi Arabian Military Industries  (SAMI), Raytheon Technologies Corporation (RTX Corporation), Almaz-Antei Corporation JSC, Leonardo S.p.A., Lockheed Martin Corporation, Northrop Grumman Corporation, Airbus SE, BAE Systems PLC, General Dynamics Corporation, and The Boeing Company. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In January 2025 - Leonardo signed a Memorandum of Understanding (MoU) with Saudi Arabia’s Ministry of Investment (MISA) and General Authority for Military Industries (GAMI) to enhance collaboration in the aerospace and defense sectors. Building on a 2024 agreement, the MoU focuses on areas, such as space, airframe MRO, electronic warfare, and helicopter assembly.

• In December 2024 - India and Saudi Arabia strengthened their defense cooperation, actively exploring joint ventures in key sectors like shipbuilding, electronics, AI, and cybersecurity. Both nations, historically major defense importers, aim to boost indigenous production and are fostering this through mutual trust, technology sharing, and joint military exercises.

Scope of the Report

By Platform

• Air-based Systems

• Land-based Systems

• Naval Systems

By Type

• Weapons & Ammunition

• Communication Systems

• Radar and Surveillance Systems

• Electronic Warfare Systems

• Cybersecurity & Defense Tech

By End User

• Army

• Air Force

• Navy

• Special Security Forces

• Border Guards

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Defense Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. High Military Spending
         2. Strategic Partnerships
         3. Vision 2030 Initiative
      2. Restraints
         1. Dependency on Foreign Suppliers
         2. Geopolitical Uncertainty
      3. Opportunities
         1. Local Defense Industry Development
         2. R&D and Tech Innovation
      4. Challenges
         1. Complex Regulatory Environment
         2. Budgetary Pressures Amid Oil Price Volatility
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Defense Market: Marketing Strategies
5. Saudi Arabia Defense Market: Pricing Analysis
6. Saudi Arabia Defense Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Platform
         1. Air-based Systems
         2. Land-based Systems
         3. Naval Systems
      2. By Type
         1. Weapons & Ammunition
         2. Communication Systems
         3. Radar & Surveillance Systems
         4. Electronic Warfare Systems
         5. Cybersecurity & Defense Tech
      3. By End User
         1. Army
         2. Air Force
         3. Navy
         4. Special Security Forces
         5. Border Guards
7. Competitive Landscape
   1. List of Key Players and Their End Users
   2. Saudi Arabia Defense Market, Company Market Share Analysis, 2024
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on Saudi Arabia Defense Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Saudi Arabian Military Industries (SAMI)
   2. Raytheon Technologies Corporation (RTX Corporation)
   3. Almaz-Antei Corporation JSC
   4. Leonardo S.p.A.
   5. Lockheed Martin Corporation
   6. Northrop Grumman Corporation
   7. Airbus SE
   8. BAE Systems PLC
   9. General Dynamics Corporation
   10. The Boeing Company
   11. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1   Saudi Arabia Defense Market Segmentation

Figure 2   Saudi Arabia Defense Market Value Chain Analysis

Figure 3   Company Market Share Analysis, 2024

Figure 4   Saudi Arabia Defense Market Size, By Value (USD Billion), 2019-h2031

Figure 5   Saudi Arabia Defense Market Share, By Platform, By Value (USD Billion) 2019–2031

Figure 6   Saudi Arabia Defense Market Share, By Type, By Value (USD Billion) 2019–2031

Figure 7   Saudi Arabia Defense Market Share, By End User, By Value (USD Billion) 2019–2031

List of Tables

Table 1      Saudi Arabia Defense Market Share, By Platform, By Value (USD Billion) 2019–2031

Table 2      Saudi Arabia Defense Market Share, By Type, By Value (USD Billion) 2019–2031

Table 3      Saudi Arabia Defense Market Share, By End User, By Value (USD Billion) 2019–2031

Table 4      Saudi Arabian Military Industries (SAMI) Company Overview

Table 5      Saudi Arabian Military Industries (SAMI) Financial Overview

Table 6      Raytheon Technologies Corporation (RTX Corporation) Company Overview

Table 7      Raytheon Technologies Corporation (RTX Corporation) Financial Overview

Table 8      Almaz-Antei Corporation JSC Company Overview

Table 9      Almaz-Antei Corporation JSC Financial Overview

Table 10    Leonardo S.p.A. Company Overview

Table 11    Leonardo S.p.A. Financial Overview

Table 12    Lockheed Martin Corporation Company Overview

Table 13    Lockheed Martin Corporation Financial Overview

Table 14    Northrop Grumman Corporation Company Overview

Table 15    Northrop Grumman Corporation Financial Overview

Table 16    Airbus SE Company Overview

Table 17    Airbus SE Financial Overview

Table 18    BAE Systems PLC Company Overview

Table 19    BAE Systems PLC Financial Overview

Table 20    General Dynamics Corporation Company Overview

Table 21    General Dynamics Corporation Financial Overview

Table 22    The Boeing Company: Company Overview

Table 23    The Boeing Company Financial Overview