The Military Industries Sector Strategy is a national strategy of the Kingdom of Saudi Arabia, jointly operated by all military and security entities, aimed at enhancing the Kingdom's strategic autonomy and developing its national military-industrial capabilities. It was launched by the General Authority for Military Industries following approval by the Council of Ministers on April 14, 2021. The strategy is based on key pillars and priorities, including the support and empowerment of the national military industries and procurement sector through sustainable, long-term plans that contribute to the Kingdom's gross domestic product (GDP).
Military Industries Sector Strategy objectives
The Military Industries Sector Strategy in the Kingdom, in collaboration with local security and military authorities, aims to manage and enhance military procurement processes, grant licenses for military manufacturing both domestically and internationally to the public and private sectors, and maintain the localization of the military industry as a national priority. This comes in addition to raising national capabilities and expertise in military industries. The strategy also seeks to drive development by providing local support to small and medium-sized enterprises (SMEs), thereby contributing to the Saudi economy through non-oil revenues.
The strategy aims to develop and localize twenty-one technologies across seven research fields by 2030. It also includes allocating budgets and incentives to foster the development of the military industries sector, including providing educational opportunities and developing human capital.
Localization in the Military Industries Sector Strategy
The Military Industries Sector Strategy in the Kingdom supports local manufacturers by qualifying them and granting the necessary licenses for export and manufacturing. It encourages investors to invest in the military industries sector through clear global regulatory frameworks. The strategy contributes to creating job opportunities in both the private and public sectors, thereby boosting the Kingdom's economy. The General Authority for Military Industries aims to localize approximately 50 percent of the Kingdom's spending on military systems, equipment, and maintenance and repair services across eleven industrial sectors by 2030.
Strategic pillars of the military industries sector
The Saudi Military Industries Sector Strategy is built on three main pillars, which define the tasks of the sector according to the regulations of the General Authority for Military Industries. These pillars include:
- Management of military procurement operations: This pillar aims to unify best practices across military entities, leverage the sector’s combined purchasing power, achieve spending efficiency, and ensure that the localization of industry remains a top priority. Additionally, it focuses on supporting the capabilities of local manufacturers.
- Military industries pillar: Through this pillar, the authority works to localize military industries in the Kingdom by encouraging investment in the military industries sector, promoting exports, and empowering the sector through long-term military procurement planning. It also provides support to local manufacturers and issues manufacturing and export licenses.
- Military research and technology: This pillar contributes to building national capabilities, providing educational opportunities, establishing research centers and national laboratories specialized in military industries, enhancing the local research and development infrastructure, identifying priority technologies, and stimulating the development of human capital.
To showcase the Military Industries Sector Strategy in the Kingdom and highlight key investment opportunities, the General Authority for Military Industries organized a workshop titled "Investment Opportunities in the Military Industries Sector" on June 30, 2022. The workshop, held in collaboration with the National Committee for Local Content and Procurement, affiliated with the Federation of Saudi Chambers, took place in Riyadh.
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