Saudi Arabia’s Defense Industry—Growth Opportunities, 2024–2026

Saudi Arabia’s Defense Industry Growth Opportunities, 2024–2026

Accelerating Demand Will Transform the Country s Defense Industry

This report provides an outlook on the defense industry in the Kingdom of Saudi Arabia (KSA). It analyzes the country's defense buildup, identifies leading contracts and vendors, and presents a breakdown of the current defense budget allocations based on the country’s national vision for 2030.

The report identifies and analyzes key factors driving and restraining the Saudi defense industry's growth. It examines KSA's national policies and the shifting geopolitical Middle East climate to determine industry trends and identify emerging opportunities for industry participants. The study provides a snapshot of the competitive landscape, encompassing foreign and domestic participants active in the industry.

KSA is expected to further increase its defense budget allocations amid heightened perceptions of imminent threats, particularly from Iran and Yemen. Rapid deployment of advanced defense and counterstrike capabilities is a priority. Establishing domestic defense manufacturing is a key focus area, as the country emphasizes self-reliance and defense export promotion. KSA's growing international defense and defense-related bilateral relationships will create market expansion opportunities for domestic industry participants in allied nations. Finally, the report discusses the possible impact of the normalization of Israeli-Saudi diplomatic relations, which is expected to influence the domestic competitive landscape, backed by the US agenda to counter radical forces in the Middle East.