Localising Power: Saudi Defence Industrialisation as Strategic Bargain

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Just came across this series of publications posted literally today. I have not read all of it but it looks highly informative and extensive.

3 Oct 2025

A Strategic Business: The Politics of Saudi Arabia’s Defence Transformation

How is Saudi Arabia’s defence transformation reshaping its industrial base, military modernisation, and strategic partnerships while balancing U.S. interoperability with growing ties to European and Asian partners?

Eleonora Ardemagni​

ISPI Senior Associate Research Fellow MIDDLE EAST AND NORTH AFRICA

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For Saudi Arabia, defence transformation is much more than acquiring sophisticated weapons or to diversify the economy. Beneath the surface, it represents a political strategy aimed at creating local industrial value while renovating domestic power dynamics. From land forces to the naval domain, shaping a Saudi specialised workforce is key to the defence industrialisation effort. The challenge, however, is striking an effective industrial, and geopolitical balance between the diversification of defence partners, and US-linked interoperability. This ISPI Dossier delves into the most ambitious Vision 2030’s goal. The more Riyadh teams up with Washington to localise maintenance, repair and components, the more it searches to advance on tech-driven products and capabilities, partnering with European and Asian’s NATO members and partners. Where does Saudi defence industry stand? And Navy’s modernisation? What about Riyadh’s interests in joining the GCAP programme for sixth-generation fighter jets?


3 Oct 2025

Localising Power: Saudi Defence Industrialisation as Strategic Bargain

Saudi Arabia’s defence industrialisation is less about self-reliance than strategic leverage. Through localisation, capital allocation, and institutional entanglements, Riyadh builds bargaining power and political authority long before achieving full technical autonomy.

Emma Soubrier​

PRISME Initiative, Université Côte d'Azur

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Saudi Arabia’s budding defence industrialisation is first and foremost a political strategy. Long before it delivers any credible industrial self-reliance, it manufactures bargaining power—through capital allocation, storytelling-as-performance, and institutional entanglements. Since 2017, Riyadh has built a two-pillar defence-industrial machine—the General Authority for Military Industries (GAMI) to set the rules, and the Saudi Arabian Military Industries (SAMI) to execute—under a Vision 2030 pledge to localise half of military spending. The steady drumbeat of “local production” announcements and expo-floor MoUs invites a simple reading: capability gaps are closing, and self-sufficiency is within reach.[1] Yet these are wrong—or at least insufficient—benchmarks. What the Saudi project buys most reliably is strategic room, rather than technical autonomy.

That point is sharpened by today’s shifting terrain. The 2023 China-brokered Saudi–Iran rapprochement formalised a de-risking instinct, while NATO’s outreach—marked by the Secretary General’s first-ever visit to Riyadh in December 2023—widened Western venues.[2] At the same time, Riyadh’s distance from Washington has grown as the United States shields Israel’s maximalist, militarised course—from its ongoing war on Gaza, widely characterised as genocidal, to Israel’s June 2025 strikes on Iran’s nuclear programme, condemned by arms-control experts as unlawful. The ensuing twelve-day war, including Iran’s first direct strike toward a US target inside GCC territory, underscored why air-and-missile defence remains critical for the Kingdom even amid efforts to de-escalate. Most recently, Israel’s strike in Doha—denounced at the United Nations as a flagrant violation of Qatar’s sovereignty—both heightened Gulf threat perceptions and reinforced doubts about the reliability of US security guarantees.

This commentary sets out the narrated goals (diversification, localisation, “strategic autonomy”), takes stock of where things stand, and turns to where metrics are most successful—the political economy and financial plumbing organising Saudi “autonomisation”.[3]

What is the narrated goal?​

In official discourse, defence industrialisation is cast as an engine of economic diversification: a pipeline for high-skilled jobs, research and development uplift, dual-use spillovers, and prestige manufacturing capable of anchoring new industrial poles. The Saudi Vision 2030 explicitly braids economy and security—defence is portrayed as an enabling platform for the post-oil pivot. Under Mohammed bin Salman (MBS), these efforts and narrative have been very similar to, and credibly inspired by, Mohammed bin Zayed (MBZ) in the United Arab Emirates (UAE). It is worth noting how the biennial World Defense Show (WDS) in 2022, which performs this ambition as much as it builds it, was explicitly marketed as a rival to Abu Dhabi’s IDEX (the International Defence Exhibition & Conference), held for the first time in 1993.[4] The point is to signal investor-readiness and policy seriousness to domestic and external audiences alike.

A second element is capability localisation. The language is one of “autonomisation”: taking on larger shares of procurement, insulating against shifts in supplier politics, tailoring systems to local missions, and gradually moving up the value chain. This became especially salient when traditional partners debated freezing or delaying arms exports to Saudi Arabia, underscoring thefragility of dependence.[5] The message projected is that Riyadh can shape its own security future—reinforced through high-profile announcements of local production milestones and integration centres.

Last but not least, defence industrialisation is cast above all as a pursuit of sovereignty—often glossed as strategic autonomy. Localisation is presented as a means to hedge against over-reliance on single partners, particularly the United States, which has appeared less dependable as a security guarantor—most strikingly in its muted response to the 2019 oil facility attacks, feeding speculation about the Carter Doctrine’s demise. Doubts extend to Europe. Industrial policy is thus embedded within a broader diplomatic grammar: de-escalation with rivals, diversification among great powers, and localisation as a political lever in an increasingly multipolar order.

Where do we stand?​

On diversification, movement seems real, and official hopes are high. Khaled Ramadan, chairman of the International Center for Strategic Studies in Cairo, recently described Saudi military industries as a “cornerstone” of diversification, projecting a SR14 billion ($3.7 billion) contribution to GDP by 2030 and 40,000 jobs in engineering and electronics.[6] Such optimism reinforces the idea that localisation can spill over into advanced manufacturing and non-oil growth. Yet, evidence remains scant: oil still dominates the Saudi economy, and while non-oil activity grew 4.6 percent in the second quarter of 2025, the defence sector’s diversification impact is still largely aspirational. As Omar al-Ubaydli has argued, defence manufacturing is highly capital-intensive, weakly connected to the wider economy, and generates limited spillovers — making it a poor candidate to drive broad-based diversification when absorptive capacity is the real constraint.[7]

On localisation toward self-sufficiency, progress is tangible yet deceptive. GAMI reports localisation rose from 4% in 2018 to 19.35% in 2024.[8] Successes include Maintenance, Repair and Overhaul (MRO), land-systems, C2 software, corvettes, and drone payloads—such as the Hazem combat system for Avante 2200 corvettes, CETC-linked drone components, and, most emblematically, the first locally produced THAAD launcher parts in 2025. Yet these headline figures often mask reliance on export-controlled supply chains: “local” awards mean assembly and integration, not autonomy. Industrial independence remains out of reach, even as localisation delivers bargaining leverage and the optics of capability.

On strategic autonomy, the network of suppliers is wider, but the architecture remains firmly bounded to the United States. Riyadh has multiplied its options, bringing in Korean partners for K9 howitzers and Chinese firms for UAV subsystems, among others. Yet the backbone of its security apparatus is still American—above all in missile defence and operational integration. It is worth underlining that neither China nor Russia seem to have the appetite or credibility to replace the US in its role of security guarantor anyway. This is not a zero-sum game of substitution, but a strategy aimed at gaining room to manoeuvre: a hedging game that Saudi plays with growing efficiency, as alternative metrics reveal.

What lies beneath?​

Stepping back from factory counts and localisation percentages, the most immediate function of Saudi defence industrialisation is political. Capital-intensive projects centralise control over budgets, offsets, and licensing; they consolidate authority, distribute patronage through remodelled channels, and symbolically anchor leadership priorities under Vision 2030’s modernising gloss. As Neil Partrick put it, Saudi military reform “boils down to better cash control and a modest domestic defense industry”—with money as a tool to deepen political authority and claim domestic credibility.[9] The diversification claim thus coexists with an internal-power logic: defence industrialisation operates less as an engine of productivity than as a state-led coordination device and nation-branding platform, embedding rentier bargains in militarised form.

This political work sustains itself not only through budgets and institutions but also through performance and storytelling. Saudi Arabia’s first pavilion at Eurosatory 2024 in Paris, organised by GAMI, projected technological ascent and industrial credibility, even hinting at export potential. The appearance of capability often is capability: visibility shapes expectations, deters doubt, and—at best—buys time for slower build-up.[10] The parallel with sustainable energy is telling: the announcement of mega-projects performs resilience and attracts capital, regardless of whether they ultimately deliver. Defence industrialisation operates in the same register, where spectacle yields not just symbolic reassurance but reputational assets that can be mobilised diplomatically long before material autonomy is achieved. Narrative, in this sense, is constitutive of power.

A deeper layer lies in the financial architecture that organises Saudi Arabia’s defence “autonomisation.” Much of what passes for localisation is in fact about embedding foreign primes into Saudi markets and governance networks. As Shana Marshall notes, the rise of “landed companies” in the Gulf—subsidiaries like Saab UAE or Raytheon Emirates and, to come back to the Saudi case, BAE Systems Arabian Industries—binds external firms structurally to local priorities. Riyadh’s “regional HQ” policy, pushing multinational corporations to relocate their headquarters in the country, and offset rules serve the same function, folding production into a state-controlled web of capital and licensing. These create institutional entanglements that complicate export bans, redirect flows of finance and expertise, and extend Saudi agency into opaque transnational circuits.[11] What emerges is that defence industrialisation manufactures less independence than interdependence—on Saudi terms, to enlarge its bargaining power and strategic latitude.


[1] Mohammed al-Kinani, “Saudi Arabia’s drive to build a defense powerhouse”, Arab News, August 9, 2025, https://www.arabnews.com/node/2611276/business-economy

[2] Kristian Coates Ulrichsen, “De-Risking the Neighbourhood: The Security Politics of Saudi Vision 2030” (pp. 21-32) and Cinzia Bianco, “Policy Recommendations for the EU: Seizing the Gulf’s Connectivity Momentum” (pp. 133–138), in Eleonora Ardemagni (ed.), The Security Side of Gulf Visions: Adapting Defence to the Connectivity Age (Milan: Ledizioni/ISPI, 2024).

[3] Several themes build on my earlier study—Emma Soubrier, “The Gulf defence industry at the cutting (h)edge of multi-level power strategies”, Defense & Security Analysis (advance online publication, 28 August 2025)—updated and revisited here with a Saudi-specific focus.

[4] Saudi-US Trade Group (SUSTG) Team, “Coming Soon to Saudi Arabia: A ‘World Defense Show’ to Rival Abu Dhabi’s IDEX,” SUSTG.com, https://www.sustg.com/coming-soon-to-saudi-arabia-a-world-defense-show-to-rival-abu-dhabis-idex/.

[5] Shady Mansour, “Diversifying Saudi’s security: Would the US security architecture in the Middle East be threatened?” PRISME Initiative, June 5, 2023, https://prismeinitiative.org/public...rchitecture-in-the-middle-east-be-threatened/.

[6] Cited in Mohammed al-Kinani, “Saudi Arabia’s drive to build a defense powerhouse”.

[7] Omar Al-Ubaydli, “The Potential Drawbacks Associated with Domestic Military Manufacturing in the GCC Countries,” PRISME Initiative, October 19, 2023, https://prismeinitiative.org/public...s-gcc-military-manufacturing-omar-al-ubaydli/.

[8] Saudi Press Agency (SPA), “GAMI Governor: Localization of Military Expenditure Reaches 19.35%, Compared to 4% in 2018,” SPA.gov, November 21, 2024, https://www.spa.gov.sa/en/N2211485.

[9] Neil Partrick, “Saudi Arabia’s Elusive Defense Reform,” Carnegie Sada, November 14, 2019, https://carnegieendowment.org/sada/2019/11/saudi-arabias-elusive-defense-reform?lang=en.

[10] Emma Soubrier, “The Gulf defence industry at the cutting (h)edge of multi-level power strategies”.

[11] Shana Marshall, “The Role of the Gulf States in Expanded Weapons Production in the Global South,” PRISME Initiative, November 29, 2024, https://prismeinitiative.org/public...apons-production-global-south-shana-marshall/.


3 Oct 2025

Diversifying While Integrating: Industrial Policy Shapes Saudi–US Defense Cooperation

Under Vision 2030, Riyadh is recasting arms deals as industrial policy, shifting its defense ties with Washington from platforms to production.

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Amal Altwaijri (Bonus info, the author is a Saudi Arabian lady)​


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Riyadh is turning arms contracts into industrial policy. The most consequential elements are now workshare and sustainment, not just the bill of sale. Procurement officers and sovereign-fund managers arrive at the table with localization targets, offset schedules, and questions about software rights and sustainment liabilities. Although the United States remains Saudi Arabia’s principal military partner, the currency of their relationship is shifting from platforms to production, from deliveries to domestic value capture. What Washington now offers matters as much in factory build-outs and maintenance know-how as it does in missile range or armor thickness.

Under Vision 2030, Riyadh is recasting defense not only as deterrence, but also as an industrial policy—a vehicle for jobs, technology acquisition, and for retaining some value locally. In this setting, defense cooperation with Washington looks less like a one-way security guarantee and more like industrial bargaining over who captures the economic rents of modernization—through offsets, joint ventures, and licensing. The ambition is clear, so are the risks. While these mechanisms promise localization and capability, U.S. commitment remains under question.

The Ecosystem of Saudi Defense Reform​

Saudi Arabia’s 2025 budget allocates roughly SAR 272 billion[1] (around USD 72.5 billion) to the military sector, about 21% of total spending[2]. With military outlays occupying a mid-single-digit share of GDP, the sector is not just a matter of national security but also a macroeconomic variable in its own right. Procurement decisions at this scale shape domestic demand, employment, technology acquisition, and industrial competitiveness. Every arms contract carries economic spillover effects, making industrial localization a core element of the Saudi defense policy.

As such, the scale of such expenditure makes the design of contracts as important as the systems they procure. It is here that localization emerges not as a peripheral goal but as a structural necessity. This is where the sustainment annex becomes more than a technical add-on: it becomes a strategy. The General Authority for Military Industries (GAMI)-Saudi Arabia’s defense industry regulator-has codified this into binding policy. Under its Industrial Participation Policy, any defense supply contract valued above SAR 150 million (roughly USD 40 million) must include a formal Industrial Participation Proposal, mandating that at least 60% of the contract’s value be localized[3]. This includes domestic Saudi firms. To reinforce compliance, GAMI also operates a valuation-based credit system that rewards contractors for capability development and sourcing from local companies— especially SMEs and sole-source suppliers— thereby aligning financial incentives with national industrial policy[4]. Localization is thus steadily gaining momentum, rising from 4% in 2018 to 19.35% by 2023, with the Kingdom targeting over 50% by 2030[5].

Accordingly, Saudi Arabia’s import profile has eased: it shifted from being the world’s largest arms importer in 2019 to fourth place in 2024[6]. That shift reflects two dynamics. First, the cyclical rhythm of procurement, with peaks when major platforms are delivered and slows as new programs spool up. Second, an early reweighting of value toward domestic sustainment and production, as Riyadh begins to anchor more maintenance, repair, and component manufacturing at home rather than relying solely on imports. With significant deliveries still pending, the Kingdom will remain a major importer in absolute terms—but the trajectory of the ecosystem is clear: the balance of recurring work and spending is steadily migrating inside the Kingdom.

Washington’s role in the Saudi Military Reform​

Within this ecosystem, the United States ‘role remains central. Saudi Arabia stays one of Washington’s most significant defense customers, with roughly three-quarters of its recent arms imports sourced from U.S. firms[7]. Yet the relationship has evolved: U.S.–Saudi defense cooperation now functions as a reform instrument as much as a supply channel.

In that light, the headline $142 billion U.S.–Saudi defense package announced during President Donald Trump’s 2025 visit takes on deeper strategic meaning[8]. Its significance lies less in the topline figure than in the sustainment architecture it will commit to under the Saudi defense ecosystem; long-term collaboration in training, maintenance, and logistics to ensure that advanced platforms can be operated and supported in the Kingdom over time. In other words, cooperation becomes the mechanism through which interoperability is converted into industrialization, embedding the deal within Saudi Arabia’s localization framework.

Because sustainment spending dwarfs initial procurement over a system’s life cycle (on the order of around70%), the new rules render sustainment the strategic hinge of the Saudi–U.S. defense relationship. Performance-based logistics, local Maintenance, Repair and Overhaul (MRO) hubs, and shared supply chains become the venues where U.S. contractors meet GAMI’s localization targets without compromising U.S. export-control constraints.

That co-production/sustainment logic is already visible. Boeing and Saudi Arabian Military Industries (SAMI) have created a joint venture to localize maintenance, repair, and overhaul for military aircraft and rotorcraft[9]. In parallel, the General Authority for Military Industries (GAMI) signed its first Industrial Participation Agreement (IPA) with Raytheon to localize Patriot deep maintenance, and Lockheed Martin has awarded Saudi subcontracts tied to the Terminal High Altitude Area Defense (THAAD) system[10].

Building on this reform pivot, the U.S. Military Training Mission (USMTM) continues to work with the Saudi forces. However, cooperation is no longer limited to routine training. Increasingly, it has moved into emerging domains of warfare. Joint exercises like Red Sands now focus on countering drones, integrating sensors and shooters through common command and control (C2) frameworks, and testing both kinetic and non-kinetic effects. This shift marks a reform moment: training has evolved from teaching core skills to developing new tactics, techniques, and procedures for the threats Riyadh faces today.

From Dependence to Diversification​

Two accelerating trends are changing what “localization” means and where friction with Washington may arise.

First, the United States remains risk-averse on technology transfer, so the localization packages reaching Saudi Arabia are tightly scoped-assembly, components, and maintenance with bounded technical data under U.S. International Traffic in Arms Regulations (ITAR)[11][12]. These steps can lift availability, create jobs, and thicken supply-chain resilience, but they fall short of what today’s missile, drone, and electronic-warfare environment demands.

The crown-jewel levers-seekers and guidance, advanced sensors and radar modules, mission software/firmware, engine hot sections, and crypto/COMSEC (the measures taken to protect military communications)-remain U.S.-gated, leaving rapid reprogramming, new threat libraries, to identify scenarios and proper responses, and deep modifications dependent on foreign approvals and timelines. For Riyadh, autonomy is improving in sustainment and cost control yet still bound at the design and upgrade layer.

Moreover, Riyadh’s cooperation with Washington is tempered by a hard lesson about commitment risk. The 2019 attacks against Saudi Aramco’s plants in Al-Abqaiq and Khuraisexposed how missile and drone salvos can impose strategic and economic shocks, and it sharpened questions about external guarantees. In 2021 the United States repositioned Patriot and THAAD batteries out of Saudi Arabia despite being in active war in Yemen, underscoring that U.S. force posture in the Gulf is fluid. Most recently, Israeli airstrikes in Doha jolted the sense of what Washington means for the region, reinforcing Riyadh’s instinct to hedge, even while it keeps U.S. interoperability at the core.

That hedging instinct now extends beyond supplier diversification into formal defense partnerships. Shortly after the Israeli attack on Qatar, Saudi Arabia signed a mutual defense pact with Pakistan in September 2025, a nuclear-armed state, pledging reciprocal protection in case of attack. Statements by Pakistani officials that their nuclear capability could be “made available” to the Kingdom—later softened in clarifications—fueled speculation about Riyadh seeking a de facto nuclear umbrella through a proxy[13]. Whether or not that interpretation holds, the signal is clear: as Washington calibrates its commitments, Saudi Arabia is broadening its own security architecture, layering regional partnerships alongside its U.S. anchor.

Second, the emerging tech landscape reshapes the bargaining environment. In domains like Unmanned Aerial Systems (UAS), counter-UAS, electronic warfare, and C4ISR software[14], entry barriers are lowered, and the supplier pool increases for the Kingdom. These suppliers do not displace the U.S., but they complicate Washington’s dominance. This change erodes America’s monopoly and allows Riyadh to play multiple and diversify inputs in fast-moving niches, signaling a more multipolar market.

This is where U.S. firms’ caution with technology transfer matters. American primes tend to restrict local work to assembly, maintenance, or low-end production. From their perspective, this is prudent, given ITAR rules and concerns about intellectual property. But for Riyadh, it creates frustration and often pushes it toward European and Asian suppliers willing to offer more generous industrial terms.

Saudi Arabia is already acting on that logic. It has expanded its supplier base while also investing heavily in its own defense industry[15]. This dual approach-diversifying sources abroad while scaling local manufacturing-reflects a deliberate hedging strategy: broaden partnerships where software and data packages travel with the systems, while preserving the United States as the integrator of record for critical interfaces and certification.

The Life-cycle paradox of U.S. Systems: The case of Saudi Land Forces Reform​

Acquisition costs are only the tip of the iceberg; sustainment, spares, upgrades, and training often represent 60–70 percent of a platform’s total cost over its service life. For Saudi Arabia, which already spends more than a fifth of its budget on defense, ignoring this dimension risks undermining fiscal sustainability.

This problem is most visible in U.S.-origin platforms. The M1 Abrams tank and M2 Bradley infantry fighting vehicle are formidable assets, but their engines, fire-control systems, and electronics tie Saudi forces into long, expensive sustainment pipelines dominated by U.S. contractors. These tails often cost more than the acquisition itself.

By contrast, localized systems—such as AK-103 rifles, ammunition, and some armored vehicles—illustrate the opposite dynamic. They are less prestigious but cheaper to sustain, easier to maintain domestically, and aligned with Vision 2030’s goals of jobs and resilience. This juxtaposition highlights the life-cycle paradox: prestige purchases deliver capability but lock in dependency, while humbler systems deliver cost-effectiveness and sovereignty.

The Royal Saudi Land Forces, with about 75,000 personnel, provide a clear illustration of these dynamics. On one side of the ledger are U.S.-supplied Abrams tanks, Bradleys, and artillery-high-end capabilities with costly sustainment chains. On the other side are localized efforts in small arms, ammunition, and armored vehicles-lower-tech but more sustainable, with genuine industrial spillovers.

This contrast reflects a national balancing act: Saudi Arabia is capable of achieving industrial bargaining gains in areas more amenable to localization, while continuing to procuring to the U.S. advanced platforms that carry much of the sustainment burden.

Conclusions​

For Riyadh, the challenge is balancing diversification with integration: sourcing from multiple actors without fragmenting its force structure or weakening its U.S.-linked interoperability.

Riyadh has already begun to move along this path. The first step has been to push beyond simple assembly toward localized production in land systems, missile components, and electronics.[16] In parallel, Saudi firms are working to build absorptive capacity, such as Centers of Excellence in land systems. Efforts at greater life-cycle discipline are also visible, as sustainment agreements increasingly tie procurement to domestic maintenance and repair platforms. Finally, diversification is being pursued cautiously but deliberately, with new partnerships with Turkey, Spain, and South Korea layered atop continued reliance on U.S. primes, preserving interoperability while expanding options. In practice, the road is challenging, but Saudi Arabia is already sequencing localization, capacity-building, sustainment reform, and diversification in ways that will define the next phase of its defense cooperation with Washington.


[1] Ministry of Finance, Kingdom of Saudi Arabia, Budget Statement FY 2025 , pg. 86

[2] Ministry of Finance, Kingdom of Saudi Arabia, Budget Statement FY 2025 , pg. 88

[3] General Authority for Military Industries (GAMI), Industrial Participation Policy, pg. 8

[4] General Authority for Military Industries (GAMI), Industrial Participation Policy, pg. 12,13

[5] General Authority for Military Industries (GAMI), “Localizing the Sector

[6] Stockholm International Peace Research Institute (SIPRI), Trends in International Arms Transfers, 2024, fact sheet, March 2025, https://www.sipri.org/publications/2025/sipri-fact-sheets/trends-international-arms-transfers-2024

[7] Stockholm International Peace Research Institute (SIPRI), Trends in International Arms Transfers, 2024, fact sheet, March 2025, https://www.sipri.org/publications/2025/sipri-fact-sheets/trends-international-arms-transfers-2024

[8] [8] The White House, “Fact Sheet: President Donald J. Trump Secures Historic $600 Billion Investment Commitment in Saudi Arabia,” May 13, 2025, https://www.whitehouse.gov/fact-sheets/2025/05/fact-sheet-president-donald-j-trump-secures-historic-600-billion-investment-commitment-in-saudi-arabia/.

[9] “Red Sands 2025: U.S. and Saudi Arabia Test 20 Counter-Drone Systems in Record Middle East Drills,” Army Recognition, September 17, 2025, https://armyrecognition.com/news/army-news/2025/u-s-and-saudi-forces-team-up-for-middle-easts-biggest-counter-drone-exercise

[10] Lockheed Martin, “Lockheed Martin Awards Localization Subcontracts for THAAD Weapon System in the Kingdom of Saudi Arabia,” Lockheed Martin Newsroom, February 5, 2024, https://news.lockheedmartin.com/en-...on-system-in-the-kingdom-of-saudi-arabia.html

[11] The International Traffic in Arms Regulations (ITAR) restrict U.S. defense firms to narrowly scoped transfers—via Technical Assistance or Manufacturing License Agreements—covering assembly, maintenance, or components rather than full technology handover.

[12] U.S. Department of State, Directorate of Defense Trade Controls, “International Traffic in Arms Regulations (ITAR), https://www.pmddtc.state.gov/ddtc_public?id=ddtc_public_portal_itar_landing

[13] Associated Press. “Pakistan Says Its Nuclear Program Can Be Made Available to Saudi Arabia under Defense Pact.” AP News, September 17, 2025. https://apnews.com/article/pakistan-saudi-nuclear-pact-defense-e66e0ded8045812c8aea39e21d764836

[14] “Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance” systems—software that integrates sensors, networks, and decision-making tools to give armed forces real-time battlefield awareness and coordination.

[15] For example, SAMI is building a land-systems manufacturing base through the SAMI Land Industrial Complex, envisioned as the hub for armored vehicle and weapons production inside the Kingdom.

[16] This is illustrated by SAMI’s new armored vehicle complex, local manufacturing of THAAD missile parts, and the integration of Advanced Electronics Company into the national defense portfolio.


3 Oct 2025

Shopping for Sea Power: Saudi Arabia’s Naval Transformation

Saudi Arabia is rapidly modernizing its navy while building a domestic shipbuilding industry. Driven by ageing vessels and shifting strategic pressures, Riyadh aims to combine advanced acquisitions with industrial capability, though challenges in logistics, workforce development, and long-term sustainability remain.

Albert Vidal​

Research Analyst, International Institute for Strategic Studies (IISS)

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Saudi Arabia’s recent naval modernization has been driven by two primary factors: an ageing navy and a shifting strategic landscape. In response, Riyadh has ramped up naval procurement and accelerated the development of domestic shipbuilding capabilities, although it continues to face challenges.

Triggers of Modernization

As of 2025, only five of the Kingdom’s sixteen major surface combatants were built after 2010. Eight date back to the early 80s—over four decades ago—and are believed to be in poor condition, as frigates and corvettes reach obsolescence after 35 to 40 years. Additionally, Saudi Arabia’s two main supply ships and its nine Al-Siddiq-class patrol craft are also around 40 years old.
At the same time, the Kingdom’s strategic environment is undergoing significant change. Iran continues to expand its regular navy (Nedaja) and the Islamic Revolutionary Guard Corps Navy (IRGCN), commissioning submarines, drone carriers, and hundreds of speed boats. Since 2019, Tehran’s harassment and seizure of merchant vessels around the Strait of Hormuz and in the Gulf of Oman have demonstrated its willingness to use coercive maritime tactics. Meanwhile, under Saudi’s Vision 2030, the country is shifting its economic centre of gravity toward the Red Sea, launching numerous mega-projects, tourist resorts, and ports and logistics hubs—all of which rely on a safe maritime domain. The ongoing Houthi threat further compounds these challenges.

Naval Acquisitions

The Saudi Naval Expansion Programme II (SNEP II) represents Riyadh’s response to these challenges. Table 1 shows the Kingdom’s naval acquisitions during the 2014-2024 decade, the most important of which are eight frigates from Spain’s Navantia (the first five delivered under the Al Sarawat Project) and four frigates from the US’ Lockheed Martin (Tuwaiq Project). While the 2018 purchase of five frigates from Navantia was considered a success, with all vessels delivered on schedule and at a reasonable cost, the larger modified Freedom-class frigates being built in the US are approximately 2.5 times more expensive per ship. Despite the deal being signed at around the same time as the Navantia contract, the first delivery is not expected until 2029.
Other smaller acquisitions include 58 patrol boats for the navy and 79 for the maritime division of the Border Guard, as well as an undetermined number of patrol craft from Germany’s Lürssen. The navy also procured 10 anti-submarine warfare helicopters and is set to receive some of the Bayraktar Akinci UAVs, following Saudi Arabia’s 2023 contract with Türkiye’s Baykar.


Order DateClassTypeQtyValueSupplierStatus
2014Lürssen OPB 40, Plascoa FIC 1650Coastal Patrol Craft, Fast Patrol Boatn.k, 79USD1.99bnNaval Vessels Lürssen, CouachPartially halted due to arms embargo
2015MH-60R SeahawkAnti-Submarine Warfare Helicopter10USD1.08bnLockheed MartinDelivered
2018HSI 32Fast Patrol Boat58n.kCMN, Zamil ShipyardsDelivered
2018Al-Jubail (Avante 2200)Frigate5USD2.13bnNavantiaDelivered
2019MMSC (Freedom LCS mod)Frigate4USD6.03bnLockheed MartinUnder construction
2019Couach 22mPatrol Boat12n.kCouachDelivered
2023Bayraktar Akinci*UAVn.k.≥ USD3bnBaykarSigned
2024Al-Jubail (Avante 2200)Frigate3USD1.09NavantiaSigned
Table 1: Selected Saudi naval acquisitions since 2014.
Source: Military Balance+, author’s research.
*Not all the Bayraktar Akinci will enter service in the Saudi navy.
The Saudi navy has reportedly allocated at least USD4bn for further acquisitions over the next few years. These include requirements for five light frigates, two replenishment oilers, maritime patrol aircraft, and additional high-speed patrol craft for the Border Guard. The Kingdom is also exploring the acquisition of MQ-9 UAVs (drones) and unmanned surface vessels (USVs, also known as drone boats) for maritime surveillance, and potentially an amphibious assault ship—though this remains unconfirmed.

Meanwhile, Saudi naval personnel are receiving training from a range of international partners, including, among others, the Spanish Navy with support from Navantia, the Indian Navy (which trained 55 cadets in 2023 and 76 in 2024), the US Navy, and the FrenchMinistry for the Armed Forces.
While acquiring advanced vessels remains a key component of Saudi naval modernization, parallel efforts to cultivate a domestic shipbuilding industry are now gaining momentum.

Developing a Naval Shipbuilding Capability

Saudi Arabia is developing a domestic naval shipbuilding capability almost from scratch to strengthen its strategic autonomy and satisfy its industrial ambitions. Until recently, the only relevant entities in this sector were Zamil Shipyards and Middle East Maritime Repair (MEMR), an offshoot of German shipyard Lürssen. Zamil has the capacity to build and assemble patrol boats and interceptors but has remained primarily focused on commercial maritime activities. Meanwhile, MEMR specialized in providing maintenance, repair, and overhaul (MRO) services to the Border Guard.
Today, the ecosystem stands at an inflection point with the establishment of Sofon Naval—Saudi Arabia’s new naval shipbuilding champion—set to operate from a new planned shipyard soon to be built in Ras Al-Khair, in the Saudi Eastern Province. Sofon Naval will fall under Sofon Holding, a strategic sector champion tasked with fast-tracking the development of the shipbuilding industry. Although the commercial side of this ambitious initiative is advancing more rapidly than the naval component, Saudi Arabia ultimately hopes to produce most of its navy and coast guard vessels domestically. As of early 2025, Sofon Naval’s shipyard remains in the conceptual design stage. Once completed, it intends to accommodate vessels up to the size of a destroyer.
However, building a shipyard is only one part of the equation. Sofon also needs to hire and train a skilled workforce of marine engineers and technicians. In the short term, this likely means hiring experienced personnel from South and Southeast Asian origin. However, to meet the country’s Saudization targets, developing a capable domestic workforce is essential. For this, institutions such as King Abdulaziz University and the National Maritime Academy (NMA) could play a key role. Although NMA was originally established to train mariners, in 2019 it announced plans to launch a new branch to train shipyard workers—though it remains unclear whether this initiative has been implemented. NMA is also collaborating with several foreign partners to strengthen its engineering and shipbuilding course offering, including BAE Systems SDT, City of Glasgow College, and the International Maritime Industries.

The Kingdom has also benefited from training provided by international defence companies. In 2021, France’s Naval Group announced plans to train over 50 Saudi engineers and technicians over a three-year period, and to recruit around ten local engineers to be mentored by French senior employees, with the aim of integrating them into the company. Navantia has already trained 200 Saudi blue-collar workers in Spain, equipping them with the skills to maintain the five Al-Jubail-class corvettes.[1] Under the new agreement for three additional corvettes, Navantia plans to train 105 Saudi shipbuilding engineers who are expected to join Sofon Naval. MEMR reportedly provides training on MRO for patrol ships.[2]

Challenges and Outlook

Despite Saudi Arabia’s substantial investments in modernizing its navy and establishing a domestic naval shipbuilding ecosystem, several challenges persist.
First, key capabilities remain underfunded as of early 2025—particularly in the areas of logistics and support ships, and mine countermeasures vessels. These gaps could constrain the navy’s ability to conduct both long-endurance missions and demining operations respectively, the latter being especially critical in strategic chokepoints such as the Strait of Hormuz and Bab el-Mandeb.
Second, the long-term sustainability of Saudi Arabia’s naval shipbuilding enterprise remains uncertain. The accelerated nature of its establishment may lead to unexpected obstacles, including challenges to retain skilled personnel and a lack of sustained demand. Strengthening the technical education and training pipeline will also require time and sustained investment. Even then, the shipbuilding sector may struggle to attract local talent due to the shipyard’s remote location in Ras Al-Khair, in addition to competing with more appealing alternatives in sectors like entertainment and technology.
Lastly, the acquisition of all the naval assets listed in Table 1 does not automatically translate into effective military capability. This needs to go hand in hand with rigorous and regular military training—both in live and synthetic environments. Given the ageing condition of several major vessels in the Eastern Fleet, there is concern that at-sea deployments and training may not be occurring with the necessary frequency or intensity.


[1] Author’s communication with an industry professional, January 2025.
[2] Author’s communication with an industry professional, November 2024.

Eleonora Ardemagni​

ISPI Senior Associate Research FellowMIDDLE EAST AND NORTH AFRICA

3 Oct 2025

On GCAP and the Underwater, Riyadh Looks At NATO Countries and Partners

Saudi Arabia is prioritizing partnerships with NATO members and allies in cutting-edge defence sectors, from sixth-generation fighter jets to underwater capabilities. These collaborations aim to boost domestic expertise, advance strategic autonomy, and strengthen Riyadh’s geopolitical posture, while reducing reliance on China and Russia.

2017-01-25T000000Z_1556193119_RC1ECF76B8B0_RTRMADP_3_SAUDI-DEFENCE-AEROSPACE-scaled.jpg

Saudi Arabia is prioritizing international partnerships with NATO members and partners, rather than with China and Russia, in two of the most innovative defence industry segments: the sixth-generation stealth fighter aircrafts and the underwater dimension. On these topics, Riyadh is also pursuing defence collaborations without the US, eying or building complementary partnerships with European and Asian states.

Three priorities are guiding Riyadh, under the framework of Vision 2030. The first is Saudi Arabia’s diversification efforts in defence, while maintaining the special alliance with the US. The second is the capability goal: building national expertise at technical level, focusing on Saudi defence industries and workers, to boost non-oil economy and moving towards long-term defence autonomy. This means, for instance, pushing on local production of defence components, and on domestic military services capabilities for repairing and maintenance. The third priority is promoting groundbreaking technological research to cope with rapidly evolving threats and maximise Riyadh’s middle power status.

On sixth-generation fighters and the underwater, the international partnerships that Saudi Arabia is shaping fit into this strategy.

The Saudis in the GCAP? The Role of AI and Disruptive Technologies​

On airpower, Riyadh aims to be at the forefront, to enhance regional deterrence, defence capabilities, and national prestige. Saudi Arabia may join GCAP, the Global Combat Air Programme (GCAP) among the UK, Italy and Japan: the political and industrial conversation is currently open. GCAP is an unprecedented trilateral partnership among equals formalized by a joint venture and a treaty. It is designed as a crewed platform integrating unmanned systems and satellites, with all the ´pieces` connected by an architecture entailing the most advanced and investments-driven technologies: from artificial intelligence (AI) to cloud computing and quantum.

Two factors would make Saudi Arabia’s participation in the aircraft programme an added value: financial resources and bourgeoning AI investments. In recent years, Saudi Arabia has committed heavily to AI and other disruptive technologies, earmarking 40 billion dollars for AI-related investments. The Saudi government has placed technological alphabetization, and more broadly STEM disciplines,1at the core of education efforts: in 2025, the government allocated 12 billion dollars toward tech innovation in education, comprised STEM labs in school and universities.

On aircraft cooperation, Riyadh would not start from scratch. The British and the Italian industrial ´legs` of GCAP, BAE Systems and Leonardo, have subsidiaries in Saudi Arabia and train Saudi nationals in fields like engineering, technology and aviation. At a practical level, the Royal Saudi Air Force is already operating the Eurofighter Typhoon (the fourth-generation project among UK, Germany, Italy and Spain), which is interoperable with GCAP and will be replaced by the latter once the sixth-generation aircraft’s production, expected in 2035, will start. Furthermore, the Saudi partnership would favour GCAP’s future access to export markets in the GCC states.

GCAP and KAAN: Two Complementary Programmes for Riyadh?​

The Saudi interest for GCAP rises as prospects to acquire American F-35 decrease. On fifth-generation aircrafts, the sale of the F-35 jets by the US is still on hold: the decision depends on US Congress’ consensus considering also Israel’s military edge. At the same time, Riyadh has reportedly stepped away from acquiring China’s J-35, the Chinese fifth-generation fighter jet, likely due to technical evaluations and, most of all, geopolitical considerations.

Alongside GCAP, Riyadh is also exploring the possibility to participate to another NATO country-related project: KAAN, the Turkish fifth-generation fighter aircraft, recently joined by Egypt.

For the Saudi strategy, KAAN would not represent an alternative to GCAP, but rather a complementary, ´in-between` programme. Reasons are multiple. First, KAAN production is expected to start in 2028, thus earlier than GCAP; second, the Turkish aircraft programme is developed with BAE Systems, GCAP’s industrial partner; third, the Saudis could replicate Egypt’s collaboration scheme, which comprises technology transfer, collaborative production lines, and future procurement; finally, KAAN could play a role in the Saudi adaptation to more advanced technologies, like a ´belt project` supporting national defence transition from current fourth-generation capabilities (ex. the F-15 jets now operated by the Royal Saudi Air Force), to the fifth-generation and towards the sixth.

Saudi Investments in Underwater Defence: The Role of Cables​

Saudi Arabia aims to build-up its underwater defence. In a few years, the undersea dimension has globally turned into a contested domain due to great powers competition. With coasts bordering both the Gulf and the Red Sea, Riyadh must protect national security vis-à-vis states (e.g. Iran) and nonstate actors (e.g. Yemen’s Houthis), while also seizing economic opportunities related to the blue economy. Connectivity, which includes underwater critical infrastructures such as energy pipelines and internet cables, stands at the core of Vision 2030. The Saudi Vision Cable is set to be the first high-capacity submarine cable in the Red Sea (1,160,000 metres) connecting Jedda to Duba (NEOM). Moreover, the project for the India-Middle East-Europe Economic Corridor (IMEC) signed by Saudi Arabia in 2023, will comprise undersea pipelines and cables.

The rise of critical underwater infrastructure in Saudi Arabia must be effectively protected: advanced technologies and AI applications can support detection and surveillance systems to prevent below-the-threshold tactics in the seabed, ranging from espionage to disruption and sabotage.

In this context, Riyadh is working to acquire underwater defence products, such as the potential sell of torpedoes by the US to boost Saudi anti-submarine warfare capabilities.

Saudi Arabia is also building international research and development collaborations, with France as main partner. This occurs despite Chinese and Russians having significant experience in both traditional (submarines) and new tools (uncrewed underwater vehicles) of underwater warfare. However, the Saudis are opting for defence cooperation with NATO members and partners to shape their national seabed strategy.

In 2024, the Saudis ordered five Captas-1 sonars from France’s Thales to detect submarines operating in shallow waters. In 2019, Saudi Arabian Military Industries (SAMI) and France’s Naval Group had already signed a memorandum for a joint venture (51:49), to develop and manufacture submarines. Building on that agreement, SAMI and Naval Group are now negotiating the establishment of a research and development centre in Dammam, on the Saudi Gulf shore, focused on underwater warfare capabilities.

Closer to NATO Members and Partners​

In sixth-generation fighters and in the underwater, the Saudis have opened to or have built international defence partnerships ´beyond the US` with NATO members and partners: from European and Asian states (UK, Italy, France, Japan), to Türkiye. This trend can be further enhanced. For instance, Riyadh’s World Defence Show 2026 will see for the first time the participation of Japan as defence industry exhibitioner, as the Saudis are in talks to join GCAP.

Conversely, Riyadh looks less eager than previously to partner with China and Russia on innovative defence industry projects, because of sanctions threat and geopolitical considerations. This adds to the recent pro-US Saudi policy direction on AI (ex. the Nvidia chip deal in May 2025), and critical minerals (the May 2025 US-Saudi memorandum), which are also fundamental for the defence industry field.

Partnering with NATO members and partners, Riyadh can incrementally get closer to the Atlantic Alliance’s know how and, practically, to its military standards in the long run. This may occur even though the Saudis have never joined formal NATO partnerships (the Istanbul Cooperation Initiative, ICI), although participating at selected Atlantic Alliance’s military education initiatives, for instance on counter-improvised explosive devices and maritime security.

Growing Saudi defence collaborations on innovative defence industry segments with some NATO members and partners can gradually impact Saudi international posture, carrying geopolitical implications that warrant careful monitoring.


[1] Science, technology, engineering and mathematics.

 
I read all of it and in general it captures a lot of topics very well.

A little comment on top of my head. No mention of the very strategic Royal Saudi Arabian Strategic Missile Force which from our knowledge (public that is) is strictly a Chinese collaboration since the 1980's. Quite possibly with Pakistani input.

Speaking about this branch of the Saudi Arabian military, this Israeli academic made a very extensive Twitter feed recently about the topic showing even recent developments (satellite imagery from June 2025) in regards to new ballistic missile bases appearing in the mountains and deserts of KSA.

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As for KSA opting for a Western/NATO-aligned partner for the sixth-generation fighter jets, it makes perfect sense given the full military alignment with the US/UK/West in regards to the Air Force.

Overall a great read for those unfamiliar with the main themes of the Saudi Arabian military.

I also agree with the authors in their conclusions of KSA betting on two horses (GCAP and KAAN) being the correct decision.

I like this part of the article in particular when discussing the two options;

"GCAP and KAAN: Two Complementary Programmes for Riyadh?​

The Saudi interest for GCAP rises as prospects to acquire American F-35 decrease. On fifth-generation aircrafts, the sale of the F-35 jets by the US is still on hold: the decision depends on US Congress’ consensus considering also Israel’s military edge. At the same time, Riyadh has reportedly stepped away from acquiring China’s J-35, the Chinese fifth-generation fighter jet, likely due to technical evaluations and, most of all, geopolitical considerations.

Alongside GCAP, Riyadh is also exploring the possibility to participate to another NATO country-related project: KAAN, the Turkish fifth-generation fighter aircraft, recently joined by Egypt.

For the Saudi strategy, KAAN would not represent an alternative to GCAP, but rather a complementary, ´in-between` programme. Reasons are multiple. First, KAAN production is expected to start in 2028, thus earlier than GCAP; second, the Turkish aircraft programme is developed with BAE Systems, GCAP’s industrial partner; third, the Saudis could replicate Egypt’s collaboration scheme, which comprises technology transfer, collaborative production lines, and future procurement; finally, KAAN could play a role in the Saudi adaptation to more advanced technologies, like a ´belt project` supporting national defence transition from current fourth-generation capabilities (ex. the F-15 jets now operated by the Royal Saudi Air Force), to the fifth-generation and towards the sixth."​
 

Saudi Arabia leverages World Defense Show to boost aerospace ambitions

ByAeroTime Advisory
October 2, 2025, 11:00 (UTC +3)
SPONSORED
World Defense Show 2024
World Defense Show

At the heart of Saudi Arabia’s bid to become a regional defense and aerospace power is Vision 2030, a sweeping national plan to diversify the economy and build domestic industries. A cornerstone of this vision is an ambitious target: to localize over 50% of military procurement by 2030. In practical terms, the Kingdom aims to shift from purchasing defense equipment from abroad to producing and maintaining it domestically.

The World Defense Show, founded by the General Authority for Military Industries (GAMI), has become a strategic platform to help meet that target. It functions not just as an exhibition, but as a matchmaking arena connecting global defense manufacturers with Saudi buyers, regulators, and local suppliers.

According to CEO Andrew Pearcey, WDS is “intrinsically linked to Saudi Vision 2030,” with localization forming a cornerstone of its mission. “We function as a vital conduit for strategic access and investment into Saudi Arabia’s burgeoning defense ecosystem, including the aerospace sector,” he told AeroTime. Programs like Meet the KSA Government and WDS Connect have been designed to facilitate direct engagement and actionable partnerships.

Technology in the spotlight

The 2026 edition will sharpen the focus on technology. From live flight and static aircraft displays to the new Saudi Supply Chain Zone, WDS aims to highlight local aerospace manufacturers, MRO providers, and technology suppliers. “These dedicated features are designed to accelerate technology transfer and foster partnerships across the entire defense sector, including aerospace manufacturing, maintenance, and broader innovation,” Pearcey said.

Advanced materials, artificial intelligence, and autonomous systems will also be featured prominently at the Future Defense Lab, further underscoring the aerospace industry’s role in multi-domain integration. With Saudi Arabian Military Industries (SAMI) as a National Strategic Partner and exhibitors from over 80 countries, WDS has experienced rapid growth. The 2024 edition alone generated SAR 26 billion (almost $7 billion) in signed deals.

Pearcey called the show’s growth “a clear signal of the international confidence WDS has attained,” adding that WDS 2026 is “meticulously designed to accelerate the elements needed for a sustainable aerospace and defense sector in Saudi Arabia.”

From buyer to partner

Saudi Arabia has traditionally relied on international suppliers for military aircraft and maintenance. Today, that model is evolving. Agreements with companies like Lockheed Martin and Airbus Helicopters are helping shift MRO capabilities into the Kingdom. Saudi Arabia is also pursuing co-production and technology transfer agreements in key aerospace segments with companies such as Baykar and Embraer. WDS supports this transition by fostering dialogue and co-investment opportunities.

Pearcey said, “WDS creates an environment conducive to the formation of joint ventures, job creation, and critical technology transfer, all designed to bolster Saudi Arabia’s local capabilities while supporting the global industry.” One example is the new Investor Program, which aims to connect international investors with Saudi SMEs operating in high-value sectors, such as aerospace.

Space, talent, and advanced technologies

While WDS 2026 won’t feature a dedicated Space Zone, space-related content is embedded throughout the show. “You may find exhibitors showcasing satellite communication systems, geospatial intelligence solutions, space-based surveillance technologies, and cybersecurity for space assets,” Pearcey explained. These technologies are also integrated into the Future Defense Lab and will be part of discussions in the Content Theater, particularly around the militarization of space and the need for resilient space infrastructure.

Another focus for the show is talent development. The Future Talent Program, run in collaboration with the Ministry of Education, will include a new “Defensethon” innovation challenge. “It’s designed to inspire and engage Saudi youth, building the next generation of talent for the defense and aerospace industries,” said Pearcey.

A national ambition on display

Since its launch in 2022, the World Defense Show has mirrored the pace and ambition of Saudi Arabia’s defense-industrial transformation. As the Kingdom expands its capacity in military aviation, drone manufacturing, MRO, and space, events like WDS provide a window into both the progress and the partnerships driving that growth.

“What excites me most is seeing our role in showcasing new technologies and systems that will help define the future of defense,” Pearcey said. “WDS 2026 is an essential platform to attend for anyone looking to contribute to this evolving future.”

Whether Saudi Arabia can truly transition from buyer to aerospace power remains to be seen. However, with billions committed, partnerships expanding, and industrial capacity slowly being built, WDS 2026 will offer a glimpse into where the Kingdom is heading and who it wants to bring along for the journey.

 

TB3 to be Commissioned on TCG Anadolu in September

TB3 to be Commissioned on TCG Anadolu in September

Rear Admiral Recep Erdinç Yetkin declared that the TB3 UCAV will begin operations aboard TCG Anadolu in September, while Baykar Chairman Selçuk Bayraktar stated that production lines for Akıncı UCAVs are under construction in Saudi Arabia.

During Teknofest Mavi Vatan, Rear Admiral Recep Erdinç Yetkin and Selçuk Bayraktar spoke with Agnes Helou from Breaking Defense, sharing exclusive information on two critical programs. According to Helou’s post on her personal social media account, the TB3 will be operational on TCG Anadolu L400 in September 2025.

Commenting on the $3 billion Akıncı export deal signed with Saudi Arabia in July 2023, Bayraktar confirmed: “Production lines for Akıncı UCAV are being built in KSA and the first delivery will take place in 2025. The intellectual property will be jointly shared between Türkiye and Saudi Arabia.”

The agreement covers not only the procurement of around 60 Akıncı UCAVs but also technology transfer and local production in Saudi Arabia, making it one of the largest defence export contracts in the history of the Republic. Deliveries are expected between 2025 and 2026.

tb3_to_be_commissioned_on_tcg_anadolu_in_september_11.webp


Manufacturing is planned at SAMI facilities in the kingdom, where the airframe, avionics, wiring and subsystems will be produced locally, alongside software sharing. ASELSAN and ROKETSAN, two Turkish partners, are also working together to make smart bombs, electro-optical systems, and guiding kits. In July 2024, SAMI and Baykar signed three more MoUs to work together more on UAV systems.

Bayraktar’s remarks gain additional weight after reports that U.S.-based General Atomics is preparing to sign its largest international MQ-9 UAV contract with Saudi Arabia.


SAMI Joins the Production of Turkish Land Systems

Saudi state-owned defence firm SAMI Land signed three contracts with three different Turkish land systems manufacturers during the IDEF25 exhibition.



SAMI’s Land Systems subsidiary signed contracts with FNSS, ASELSAN, and Nurol Makina for transfer of technology (ToT) and local production. The scopes of contracts are as follows:

-FNSS: ToT and local production of 8x8 armoured vehicles and related turrets

-ASELSAN: ToT and local production of turrets

-Nurol Makina: ToT and local production of 4x4 armoured vehicles

SAMI Land also published infographics for each contract, which give hints on the details.

The one for FNSS shows the PARS ALPHA 8x8 armoured fighting vehicle. This means PARS ALPHA’s first export customer is Saudi Arabia, and the turret to be produced is most likely TEBER-II if the agreement indeed covers FNSS’s latest 8x8 combat vehicle.

The ASELSAN contract’s infographic shows the SARP 100/25 (NEFER) unmanned turret, which mounts a 25 mm weapon (M242 chain gun or KBA revolver cannon). SARP 100/25 is currently in use with the modernised ACV-15 armoured fighting vehicles of the Turkish Army.

Finally, the Nurol Makina infographic shows the most well-known product of the firm, Ejder Yalçın 4x4 tactical wheeled vehicle, in use with a diverse range of export customers. The vehicle has been developed in many configurations, including APC, fire support with a 25 mm turret, mortar carrier, C-UAS vehicle (KORKUT 120/25 SB), ambulance, and anti-tank vehicle (SARP 120/M turret for Ukraine).

Author: Kaan Azman

Editor:Özgür Ekşi


All recent news. I think that we could talk about this relationship as developing slowly into a strategic one possibly.

I also have no doubt, I even believe that it has been confirmed, that KSA and Qatar (maybe even UAE is involved) is funding many of the main strategic Turkish military projects. KAAN included.

I think this is good news as Turkey is a fellow Muslim and regional country and there is no animosity or enmity and whatever geopolitical disagreements there are, can and should be easily solved. There are no problems people to people either.

@The SC
 
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In relation to post 4 in this thread:

Saudi Bayraktar Akinci UCAV operators graduate as $3B deal advances

An overview photo shows the Baykars 21st Bayraktar Akinci Graduation Ceremony for the Royal Saudi Air Force personnel in Türkiye, October 13, 2025. (Photo via X/@BaykarTech)

An overview photo shows the Baykars 21st Bayraktar Akinci Graduation Ceremony for the Royal Saudi Air Force personnel in Türkiye, October 13, 2025. (Photo via X/@BaykarTech)

By Newsroom
October 14, 2025 10:27 AM GMT+03:00

Saudi Air Force operators graduated from Baykar's 21st Akinci unmanned combat aerial vehicle (UCAV) training program, marking progress in a $3 billion defense contract that represents one of the Turkish defense industry's largest export deals.

Commander of the Turkish Air Force General Ziya Cemal Kadioglu and Commander of the Royal Saudi Air Force Lieutenant General Turki Bin Bandar Bin Abdulaziz Al Saud attended the graduation ceremony, Baykar announced on the social media platform X on late Monday.

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Baykar stated in its announcement, "We extend our congratulations to the trainees who successfully graduated at a ceremony honored by the presence of our CEO Haluk Bayraktar, Commander of the Turkish Air Force General Ziya Cemal Kadioglu, and Commander of the Royal Saudi Air Force H.R.H. Lt. Gen. Turki Bin Bandar Bin Abdulaziz AlSaud, together with his accompanying delegation."

Two Akinci UCAVs displayed at the ceremony carried UAV-230 air-to-surface ballistic supersonic missiles, TOLUN small-diameter bombs, and MAM smart munitions, indicating the weapons systems Saudi Arabia will employ with the aircraft.

An overview photo shows the Baykar's 21st Bayraktar Akinci Graduation Ceremony for the Royal Saudi Air Force personnel in Türkiye, October 13, 2025. (Photo via X/@BaykarTech)

An overview photo shows the Baykar's 21st Bayraktar Akinci Graduation Ceremony for the Royal Saudi Air Force personnel in Türkiye, October 13, 2025. (Photo via X/@BaykarTech)

Production and delivery timeline of Saudi Bayraktar Akinci's​

Baykar Chief Technology Officer Selcuk Bayraktar told Breaking Defense in August that production lines for the Akinci are being established in Saudi Arabia, with first deliveries scheduled for 2025.

Production facilities are under construction in Saudi Arabia, according to the agreement details. Intellectual property rights will be jointly shared by Türkiye and Saudi Arabia.

Saudi Arabian Military Industries (SAMI) announced back in 2023 that the strategic agreement with Baykar will "enhance SAMI's role in supporting the national defense industry and strengthening our local capabilities."

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The photo shows Baykar's 21st Bayraktar Akinci Graduation Ceremony for the Royal Saudi Air Force personnel in Türkiye, October 13, 2025. (Photo via X/@BaykarTech)

The photo shows Baykar's 21st Bayraktar Akinci Graduation Ceremony for the Royal Saudi Air Force personnel in Türkiye, October 13, 2025. (Photo via X/@BaykarTech)

Weapons systems details at ceremony for Saudi Akinci's​

The UAV-230, developed by Roketsan from the TRG-230 230 mm artillery rocket, has been tested to a range of 155 kilometers from the Akinci platform.

The missile uses a GNSS/INS guidance package in baseline configuration, with a laser seeker in development.

TOLUN, a GNSS/INS-guided small-diameter bomb designed for multi-carriage and structure penetration, was tested at a range of more than 65 kilometers (40.3 miles) from Akinci on a sea target.

Additional variants include TOLUN-F with a fragmentation warhead and TOLUN-IIR with man-in-the-loop capabilities using an infrared seeker.

Saudi Arabia's agreement to purchase Turkish drones in July represented one of the most significant defense contracts in Türkiye's history.

The timing of the UAV-230 and TOLUN export announcements shortly after signing the AKINCI export contract supports the possibility of their inclusion in the Saudi arsenal, according to Turkish defense media outlet TurDef.

 

Saudi-Turkish Defense Cooperation: A Strategic Shift in Riyadh’s Vision 2030​

Cem Cetinguc•March 6, 2025 12:31 pm
tr-saudi-e1638871599736.jpg
tr-saudi

Saudi Arabia, long reliant on Western arms suppliers, is now shifting its defense strategy toward localization and self-sufficiency. As part of its Vision 2030 goals, the Kingdom aims to localize 50% of its defense industry—and Turkey is emerging as a key partner in this transformation.

Leading Turkish defense companies such as Baykar, ASFAT, and ASELSAN are deepening their ties with Riyadh through co-production agreements, technology transfers, and local manufacturing initiatives. The proposed $6 billion Saudi-Turkish defense deal is a milestone in this effort, covering a broad spectrum of military assets, including warships, Altay battle tanks, UAVs, and potential collaboration on KAAN stealth fighters.

Strengthening Military Ties

Turkish-Saudi defense cooperation has significantly expanded through high-level diplomatic engagements. In July 2024, Saudi Defense Minister Khalid bin Salman Al Saud visited Turkey to discuss a defense agreement with Baykar, while Saudi Foreign Minister Faisal bin Farhan met with Hakan Fidan to reinforce bilateral ties. By December 2024, the Saudi Chief of General Staff Lt. Gen. Fayyadh Al-Ruwaili traveled to Turkey to lead the sixth Saudi-Turkish Joint Military Committee meeting with Turkish counterpart Lt. Gen. Metin Gurak.

These interactions indicate a major strategic shift in Saudi Arabia’s defense approach, moving beyond a traditional arms-buyer model to a co-producer role.

Vision 2030 and Saudi Arabia’s Defense Localization

Vision 2030, spearheaded by Crown Prince Mohammed bin Salman (MbS), aims to diversify the Saudi economy, reduce oil dependency, and develop a robust domestic defense sector. Instead of relying solely on foreign arms suppliers, Riyadh is prioritizing technology transfer and local production to enhance economic resilience and security independence.

Official figures from GAMI (General Authority for Military Industries)show steady progress toward localization targets:

  • 8% in 2020
  • 13.7% in 2022
  • 15% in 2023
  • 19.35% by the end of 2024
With this trajectory, Saudi Arabia is well-positioned to achieve its 50% localization goal by 2030.

Turkey’s Role: A Strategic Partner

Unlike Western defense suppliers, Turkey offers reciprocal agreementsthat respect the strategic autonomy of its partners, making it an attractive ally for Riyadh. According to Gökhan Batu, a security expert at ORSAM, Turkey’s industrial cooperation model aligns with Saudi Arabia’s long-term defense-industrial ambitions.

By partnering with Turkey, Saudi Arabia is not just buying weapons—it is laying the groundwork for a self-sustaining military-industrial complexthat will shape its economic and security landscape for decades to come.


Mar. 6, 2025

Turkey moves to power Saudi Arabia's defense-driven economic transformation​

Peninsula/Security
Gökhan Ereli

Gökhan Ereli

I cannot post the entire article as the photos/diagrams cannot be copied. Posting the link instead.


Saudi Arabia, Türkiye sign defence cooperation agreement​

24 Jul 2025 Created: 10:26 AM Last Updated: 10:26 AM
article



Istanbul, July 24 (BNA): The Saudi Arabian Military Industries (SAMI), the Kingdom’s leading national defence and security company and a wholly owned subsidiary of the Public Investment Fund, signed manufacturing agreements with three leading Turkish defence companies.

The agreements aim to localise the land systems industry in the Kingdom. The first agreement with Nurol Makina focuses on the transfer of technology and local manufacturing of military vehicles produced by the Turkish company. The second agreement with FNSS Defence Systems targets the transfer of technology and local manufacturing of armoured combat vehicles and weapon turrets. The third agreement with ASELSAN involves the transfer of technology and localisation of turret systems manufacturing in the Kingdom, contributing to the localisation of these vital systems within combat vehicle projects, according to the Saudi Press Agency (SPA).

The SAMI Land Systems Division is working to achieve the company’s strategic objectives by actively contributing to the localisation of the defence industry in the Kingdom through the development of advanced industrial capabilities and the delivery of high-quality products and services throughout the product lifecycle following the needs of end users.


Türkiye and Saudi Arabia’s joint quest for regional order

BY YUSUF BAHADIR KESKIN​

OCT 08, 2025 - 12:05 AM GMT+3

Türkiye’s diplomatic activism and Saudi Arabia’s symbolic role in the Islamic world make their joint stance crucial. (Illustration by Erhan Yalvaç)
"Türkiye’s diplomatic activism and Saudi Arabia’s symbolic role in the Islamic world make their joint stance crucial." (Illustration by Erhan Yalvaç)

Cooperation between Türkiye and Saudi Arabia could ease regional conflicts, bring prosperity to the Middle East​


Over the past quarter-century, the Middle East has endured a series of upheavals, from the Gulf War to the Arab Spring, from Israel’s occupation of Palestine to the devastating war in Yemen. These crises have shaken not only domestic balances but also the fabric of regional relations. Ties between Türkiye and Saudi Arabia have also been affected, sometimes reaching breaking point. The crisis of confidence that emerged around 2014 deepened over the years, but after 2021, both countries saw the need to recalibrate their foreign policies, paving the way for normalization. What truly matters, however, is that this rapprochement is producing positive outcomes nationally, regionally and globally.

The normalization of relations between Türkiye and Saudi Arabia holds the potential to create a new diplomatic balance on key issues, including securing energy and trade routes, combating terrorism and radicalism, enhancing ties between the West and the Islamic world and addressing regional crises. After years of tension, the main driver behind rapprochement has been the shifting balance of power in the Middle East. Previous competition on different fronts only produced unresolved disputes. However, Iran’s expanding influence, Israel’s destructive policies and the West’s neglect of Syria deepened regional fault lines. Add to this the fragility created by rivalries in Iraq, Saudi Arabia’s stalemate in Yemen, Lebanon’s instability and Libya’s division, the need for Ankara and Riyadh to come together becomes clear.

In this climate of chronic chaos, a stronger Türkiye-Saudi partnership could play a decisive role in managing crises and lowering tensions. Both countries bring military strength, economic resources, political weight and religious legitimacy. Unlike the deep groupings of the 2017 Qatar crisis, the focus is now on economic cooperation and stability, a strategy that reduces intra-Arab disputes. Acting harmoniously within platforms such as the Organisation of Islamic Cooperation (OIC) and the G-20 also provides a stronger basis for negotiations. This rapprochement is therefore more than bilateral; it represents a structural change that reduces the region’s conflict potential.

Benefits of alliance

One area where Ankara and Riyadh had diverged was Syria. Ankara, motivated by humanitarian concerns, border security and migration, took an active stance on the ground, while Saudi Arabia provided mainly financial support to the opposition. In recent years, Riyadh has stayed warm to normalize relations with former regime leader Bashar Assad, but both countries have since shifted to supporting Syria’s recovery and opposing Israeli occupation. Türkiye’s diplomatic and military reach, combined with Riyadh’s financial clout and influence within the Arab League and the Gulf Cooperation Council (GCC), lends weight to this alliance in shaping Syria’s future.

On Palestine, halting Israel’s aggression in Gaza, ending the occupation and pushing for a two-state solution with East Jerusalem as its capital all require not just Ankara-Riyadh cooperation but also wider international support. To end the tragedy in Gaza, building global pressure on Israel is essential. Türkiye’s diplomatic activism and Saudi Arabia’s symbolic role in the Islamic world make their joint stance crucial. The recent U.N. discussions on Gaza underscored the urgent need for a joint diplomatic roadmap to address these challenges.

Another top priority is curbing Iran’s influence through its “network of militias.” Groups such as the Popular Mobilisation Forces in Iraq, Hezbollah in Lebanon, Shiite militias in Syria and the Houthis in Yemen pose threats across the region. Türkiye’s NATO-backed hard power, combined with Saudi Arabia’s financial leverage and symbolic weight, could provide real deterrence.

Iraq is also particularly significant. Turkiye cannot ignore it because of the threat the terrorist organization PKK poses and its ties to Turkmen communities, while Saudi Arabia seeks to reduce Iranian dominance and support reconstruction. Joint investments, energy deals and security cooperation could free Baghdad from dependence on Tehran. Lebanon, collapsing under Israeli pressure and Iranian influence, also illustrates the need for this partnership: Riyadh’s historical role and Ankara’s community ties could strengthen Beirut’s state institutions against Hezbollah.

Testing grounds for co-op

Over the past decade, disputes over energy and maritime boundaries have turned the Eastern Mediterranean and Africa into zones of competition. However, there are also areas where Turkish-Saudi cooperation can bring about results. Türkiye holds military and geostrategic advantages, while Saudi Arabia wields influence in global energy markets. Riyadh’s ties with Cairo and Athens could expand Ankara’s diplomatic channels, paving the way for more inclusive energy cooperation.

The Türkiye-Saudi partnership also has the potential to yield results in Libya and Sudan by balancing the influence of foreign actors. Today, Ankara’s military and diplomatic weight is proving effective in easing tensions, building stable institutions, and setting election timelines. When combined with Saudi Arabia’s leverage over Egypt’s el-Sissi government and, to a degree, over Gen. Khalifa Haftar, real progress toward resolution in Libya is no longer unrealistic.

A Libyan settlement could also indirectly contribute to resolving the crisis in Sudan. Cutting off the flow of weapons and ammunition from Libya’s southeastern desert – primarily through the al-Kufra and al-Awaynat corridor – to the Rapid Support Forces (RSF) and other militias would restrict their mobility and increase pressure for negotiations. This, in turn, could bring Sudan’s civil war closer to an end.

Chance for lasting order

The rivalry of the past cost both countries politically and economically. The dialogue launched after 2021 opened the door to shared gains. Türkiye is set to contribute to Saudi Arabia’s Vision 2030 projects through defense products, such as Bayraktar drones and construction services in megaprojects like NEOM, while Saudis can support Türkiye’s energy and infrastructure goals.

It may still be too early to call this an alliance. Nevertheless, this cooperation, based on a win-win logic, could contribute to the stability of the Middle East and global stability. Israel's attack on Doha on Sept. 9 and the reality of the U.S.' unwavering support for this Zionist aggression have clearly exposed regional security risks. This has prompted Gulf countries to seek alternative security arrangements, increasing the likelihood of initiatives like the Saudi-Pakistan Strategic Defense Pact emerging along the Ankara-Riyadh-Doha axis soon.

To counter Israel's attacks, which began in Gaza and have spread across the region, cooperation between Türkiye and Saudi Arabia is becoming increasingly vital with each passing day. By strategically combining their complementary strengths, Ankara and Riyadh can reduce tensions and create

 

Turkish-Saudi ties amid rising geopolitical challenges​


PROF. DR. EMRULLAH ISLER
15 October 2025

I have had the privilege of living in the Kingdom of Saudi Arabia in three different time periods, each of them during unique political and military challenges in the region. I first came to the Kingdom in 1979 as a student of the Arabic language at King Saud University. Later, in 2002, I returned as an associate professor and, finally, in 2024, as ambassador of my country. Remembering how life was in Riyadh back in the 1980s, the pace of change in the Kingdom in general and in Riyadh in particular has been truly amazing. In the meantime, I am pleased to observe that the generous Saudi hospitality has not changed throughout this time and I am grateful to the great people of Saudi Arabia for making me feel at home again in the Kingdom.

This time around, the geopolitical landscape is certainly very different from both 1979 and 2002. There are major security threats arising from multiple sources, including the ever-increasing Israeli aggression, the plight of the Palestinians, instability in Lebanon, the transition in Syria, threats to maritime security in the Red Sea, and the conflict in Sudan. While global attention is currently — and rightly — on the developments in Palestine in general and Gaza in particular, we should not be distracted from the implications of these matters in the wider region.

The recent unprovoked Israeli attack targeting the Hamas delegation in Doha during ceasefire negotiations was yet another example of Tel Aviv seeking escalation in the region. It clearly demonstrated the extent of Israel’s expansionist policies and its adoption of terrorism as a state policy. It was also a stark reminder that Israel has become the most serious threat to peace and security at both the regional and international levels.

These developments highlight the pressing need for deeper cooperation between our two countries

Prof. Dr. Emrullah Isler
These developments highlight the pressing need for deeper cooperation between our two countries, namely Turkiye and Saudi Arabia. Our countries share similar perspectives on numerous regional issues, including those mentioned above. We have a strong common ground on upholding the principles of respect for sovereignty and good neighborliness, along with promoting dialogue and diplomacy, to achieve peace and security in the Middle East.

The joint Arab League-Organization of Islamic Cooperation summit held in Doha last month was a clear reflection of this common ground. President Recep Tayyip Erdogan met Crown Prince Mohammed bin Salman on the margins of the summit and had a fruitful exchange on bilateral relations and regional issues. Moreover, Turkiye has been an active supporter of and participant in the High-Level International Conference on the Implementation of the Two-State Solution, co-organized by Saudi Arabia and France, at the UN General Assembly, as well as the Global Alliance for the Implementation of the Two-State Solution.

The growth in tourism between the two countries is boosting our already strong people-to-people ties

Prof. Dr. Emrullah Isler
In addition to the strengthening Turkish-Saudi coordination at international forums, our bilateral relations are also deepening. Our foreign ministers are in regular contact — they met twice in just the last month — and in May they co-chaired the second meeting of the Turkish-Saudi Coordination Council in Riyadh.

Concurrently, economic relations between our countries are strengthening and bilateral trade and investments are expanding across a wide range of sectors. In addition to Hajj and Umrah visitors, the growth in tourism between the two countries is boosting our already strong people-to-people ties. Besides, we have increasing military and defense industry cooperation, which is becoming more important than ever in the face of the increasing security threats in the region.

Yet there is still untapped potential between the two countries and a lot of work ahead
if we are to further expand the cooperation between our brotherly countries. We regard Saudi Arabia not merely as a major and trusted partner, but also as a brotherly Muslim nation with which to work together for stability and prosperity in our region and beyond.

  • Prof. Dr. Emrullah Isler is Turkiye’s ambassador to Saudi Arabia.


Focusing on the Turkiye relationship given the previous posts and because of the potential of its importance.
 

From Importer to Innovator: Saudi Arabia’s 5 Major Shifts in the Defense Industry​

Author: Nora Albekeiri
Aug 27, 2025
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Employers • IT • KSA • invest in Saudi Arabia

Saudi Arabia’s defense sector is at a pivotal moment, as the Kingdom accelerates efforts to reduce its reliance on oil revenues and build a diversified, resilient economy. Central to this transformation is the military industries sector, which has become a strategic priority under the government’s Vision 2030 agenda. By targeting a localization rate of 50% of the Kingdom’s total military spending by 2030, Saudi Arabia aims to strengthen national security, achieve greater self-sufficiency, and boost the national economy through the development of indigenous capabilities.

The General Authority for Military Industries (GAMI) stands at the forefront of this movement, acting as the regulatory and enabling body for the defense industry. GAMI’s mandate includes overseeing technology transfer, streamlining military procurement, and supporting the growth of local defense production.

In this blog, we explore how Saudi Arabia is rapidly transforming its defense industry from a heavy importer to a global innovator. Covering key institutions, global partnerships, local tech breakthroughs, and the economic impact of the Kingdom’s five major industry shifts.

1. Vision 2030’s Bold Localization Target

At the heart of the transformation is a clear mandate: increase the local share of defense procurement, including defense equipment and services, from just 4% in 2018 to more than 50% by 2030.

Progress in the military sector has been rapid. By the end of 2023, localization had reached 19.35%, with the number of licensed military facilities rising from just five in 2019 to 296 by Q3 2024.

2. Institutional Powerhouses: GAMI & SAMI

Two key institutions are steering the sector’s growth:

  • GAMI (General Authority for Military Industries) – Regulates, licenses, and creates the policy framework for localization. GAMI established a licensing mechanism in 2019 for military manufacturing, services, and supply of military products, supporting the expansion of the sector and increasing its direct contribution to the national economy and GDP.
  • SAMI (Saudi Arabian Military Industries) – A Public Investment Fund company executing military manufacturing projects and forging strategic partnerships. SAMI aims to localize defense spending, expand its global presence, and enhance national defense capabilities in line with Saudi Vision 2030.
SAMI has already signed 53 agreements worth USD $9.33 billion and aims to become one of the world’s top-25 defense companies by 2030.

3. Strategic Global Partnerships for Technology Transfer

Localization isn’t isolation, it’s about learning from the best. Saudi Arabia is partnering with global giants like Lockheed Martin (THAAD components), Leonardo, Baykar (UAV tech), and Aselsan (defense electronics) through formal cooperation agreements that emphasize technology transfer, co-production, and the localization of manufacturing and services.

These partnerships focus on advancing defense technology and bring:

  • Technology transfer agreements
  • Joint R&D initiatives
  • Skills training for Saudi engineers
  • Localization of manufacturing and services to support operational readiness and sustainment
Saudi Arabia is also in talks to join the Global Combat Air Programme (GCAP), collaborating with the UK, Italy, and Japan on next-generation fighter jets through cooperation agreements that prioritize defense technology and joint services development.

4. Homegrown Innovation: UAVs, Radar, and AI

Innovation is now emerging from within, driven by dedicated research centers focused on developing advanced military technologies such as UAVs and radar systems. Notable military products developed domestically include:

  • eBARIQ UAV – An advanced drone developed by SAMI-AEC
  • Al-Rasid radar system – Indigenous radar tech for enhanced surveillance
  • PSATRI drones – Including Saqr, Samoom, and SkyGuard, integrating AI and autonomous navigation
These military products demonstrate the enhancement of national capabilities and are debuting at major defense exhibitions, signaling Saudi Arabia’s capability to compete globally in high-tech defense systems.

5. Economic Impact & Human Capital Growth

The localization drive is projected to deliver:

  • USD $3.73 billion direct economic contribution by 2030, with significant involvement from the private sector in driving investment and supporting advanced manufacturing.
Collaboration between public and private sectors is essential for achieving growth and localization targets, fostering innovation, and building a robust supply chain.

Some forecasts go even further USD $26.48 billion GDP impact and 100,000 jobs when factoring in indirect benefits, including new opportunities and skills development for Saudi youth in technical and engineering roles within the defense industry.

Investment in the Defense Industry: Fueling Transformation

By attracting foreign investments and forging partnerships with global defense companies, including Turkish firms and other international leaders, Saudi Arabia is rapidly advancing its capabilities in military equipment and advanced military technologies. The World Defense Show has emerged as a premier platform for local companies and manufacturers to showcase their innovations, connect with international partners, and explore new investment opportunities. This event has helped position Saudi Arabia as a regional hub for advanced military equipment, unmanned aerial vehicles, and autonomous systems, further strengthening the military sector’s role in the national economy.

Leading the Way Forward!

Saudi Arabia’s defense transformation stands as one of the most ambitious industrial evolutions of our time-driven by bold policies, strong institutions, and a commitment to homegrown innovation.

Reaching the Kingdom’s 50% localization goal by 2030 will not only reshape where defense capabilities are sourced, but also revolutionize how they are developed, positioning Saudi Arabia as a global leader in defense innovation.

With over 18 years of experience in the Kingdom, TASC Outsourcing drives transformation by delivering tailored workforce solutions and deep industry expertise. We empower defense organizations with the talent and capabilities they need to localize, innovate, and succeed.

Contact us now! to partner with TASC Outsourcing and be part of shaping Saudi Arabia’s defense future.


Saudi Arabia’s drive to build a defense powerhouse​

Saudi Arabia’s drive to build a defense powerhouse

Saudi Arabia’s military expenditure reached $75.8 billion in 2024, according to official estimates, representing 3.1 percent of global defense spending. (AFP)

MOHAMMED AL-KINANI
August 09, 2025 22:32

  • Kingdom aims to localize 50 percent of its military spending by the end of the decade
JEDDAH: Saudi Arabia’s military equipment manufacturing sector is undergoing a significant expansion, emerging as a pivotal element of the Kingdom’s Vision 2030 economic diversification strategy to boost domestic industrial capacity.

Supported by robust government backing, strategic global partnerships, and growing local innovation, the defense industry is becoming a critical contributor to national security and a promising source of non-oil revenue.

Under Vision 2030, Saudi Arabia aims to localize 50 percent of its military spending by the end of the decade. The sector’s regulator, the General Authority for Military Industries, reported notable progress, with localization rising from 4 percent in 2018 to 19.35 percent in 2024 — reflecting steady advances toward self-sufficiency in defense manufacturing.

The Kingdom’s military expenditure reached $75.8 billion in 2024, according to official estimates, representing 3.1 percent of global defense spending. Using its own methodology, the Stockholm International Peace Research Institute estimates the figure slightly higher at $80.3 billion.

The country has allocated about $78 billion for the military sector in its 2025 budget — 21 percent of government spending and 7.2 percent of gross domestic product — supporting its goals to diversify the economy and reduce oil dependence.

GAMI is driving efforts to attract investment, support small and medium-sized enterprises, and develop a strong defense industry spanning aerospace, armored vehicles, and missile systems, as well as electronic warfare, and UAVs — boosting both national security and long-term industrial growth.

Global defense spending hits $2.7tn

According to its April 2024 report Trends in World Military Expenditure, SIPRI said global military spending exceeded $2.7 trillion in 2024, marking a decade of continuous annual growth and a 37 percent increase between 2015 and 2024.

“The 9.4 percent increase in 2024 was the steepest year-on-year rise since at least 1988. The global military burden — the share of the world’s GDP devoted to military expenditure — increased to 2.5 percent in 2024. Average military expenditure as a share of government expenditure rose to 7.1 percent in 2024, and world military spending per person was the highest since 1990, at $334,” the report added.

The US, China, Russia, Germany, and India are the top five military spenders, making up 60 percent of global defense expenditure. The US leads with $997 billion — more than three times China’s $314 billion, while Russia’s spending rose 38 percent to $149 billion. Germany and India spent $88.5 billion and $86.1 billion, respectively.

SIPRI estimated Middle East military spending at $243 billion in 2024, up 15 percent from 2023.

Saudi Arabia led the region with $80.3 billion, ranking seventh globally, just $1.5 billion behind the UK.

“Its spending was 1.5 percent higher than in 2023 but 20 percent lower than in 2015 when its oil revenues peaked,” the independent institute said.

Sector key to economic diversification

Khaled Ramadan, chairman of the International Center for Strategic Studies in Cairo and an economic expert, described the Saudi military industries sector as a cornerstone of the country’s economic diversification efforts and a vital pillar of Vision 2030.

“Localizing military industries reduces reliance on imported weapons,” Ramadan said, emphasizing the sector’s role beyond defense. “It also supports advanced industries such as electronics, telecommunications, aviation technology, and advanced manufacturing, contributing broadly to non-oil economic growth.”

Ramadan projected the military manufacturing sector will contribute SR14 billion ($3.7 billion) to the Kingdom’s GDP by 2030, with military exports expected to reach $666 million. “This will boost non-oil revenues and create more job opportunities for Saudi youth,” he said.

He also said the sector had 300 licensed firms by 2024, reflecting rising investor interest, with 40,000 jobs expected by 2030, mainly in technical fields like engineering and electronics.

“This is in addition to skills development through specialized training programs conducted in partnership with global institutions to enhance competencies in technologies such as artificial intelligence and cyber warfare,” he said, adding the sector’s growth boosts demand in manufacturing and tech, supports private jobs, cuts unemployment, and promotes hiring of young Saudis.

Qualitative partnerships and technology transfer

In May, Saudi Arabia produced its first THAAD missile components with US-based aerospace and defense company Lockheed Martin, while agreements with Turkish firms Baykar, Fergani Space, and Aselsan will boost UAV, space, and defense electronics capabilities.

Moreover, the launch of BAE Systems Arabian Industries, formed by merging BAE Systems Saudi Development and Training with the Saudi Maintenance and Supply Chain Management Co., aims to accelerate localization in maintenance and technical services.

Highlighting how vital global collaborations are to Saudi Arabia’s military manufacturing goals, Ramadan pointed to partnerships with leaders like Lockheed Martin for THAAD missile components, Boeing for aircraft support, and France’s CMN for HSI32 fast interceptor boats, providing access to advanced technologies and expertise.

“These partnerships are examples of a balanced strategy combining foreign technology acquisition with domestic capacity building,” he said.

This approach is supported by the establishment of 21 research centers focused on developing military technologies, especially in electronic warfare and drones, targeted for 2030.

Ramadan said local and foreign investments in military manufacturing are projected to reach SR37.5 billion by 2030, with SR6 billion allocated by GAMI specifically for research and development.

He added that domestic military procurement has already reached SR13 billion, with local production covering drones, defense systems developed by sustainability-focused firms, and fast interceptor boats.

Despite this progress, Ramadan said that achieving localization goals will require intensified investments and overcoming legal and technical obstacles.

Talent development and inclusion

Launched by Saudi Arabian Military Industries in 2024, the Women in Defense program supports sector growth by empowering Saudi females through training and leadership initiatives. Overall, the military industries sector is expected to generate 60,000 indirect job opportunities by the end of the decade, supporting broader economic diversification goals.

The economic expert described this initiative as part of SAMI’s broader collaboration with international universities to enhance national expertise in engineering and advanced manufacturing.

Ramadan said that the sector’s expansion is expected to create thousands of jobs, particularly in high-demand areas such as engineering and electronics, while driving the need for labor in related industries and strengthening private sector participation.

SAMI’s transformation as a catalyst

SAMI marked 2024 as a turning point, launching the Kingdom’s first combat management system, expanding its workforce to over 7,000, and securing global partnerships.

Echoing Ramadan’s insights, Youssef Saidi, research fellow at the Economic Research Forum and a member of the Saudi Economic Association, told Arab News that the Kingdom is undertaking ambitious and wide-ranging initiatives to attract foreign investment into the defense sector.

“The Saudi Arabian Military Industries is leading these efforts through strengthening strategic partnerships and joint ventures with major global companies,” Saidi said, adding that the Kingdom is firmly committed to technology transfer, local defense manufacturing, and investing in national talent and research and development as integral parts of international defense contracts.

He further said that GAMI is working to foster an attractive investment climate, support manufacturers, and leverage Saudi Arabia’s considerable defense spending to position the Kingdom as both a regional hub and a global exporter of military products.

Reflecting on SAMI’s development, Saidi highlighted the company’s “profound transformation and rapid growth” since its establishment, which has made it a cornerstone of Vision 2030.

“SAMI has achieved remarkable growth in its revenues and contracts, expanded its employee base by 633 percent to reach 2,500 male and female employees by 2022, and successfully entered the list of top 100 global defense companies, advancing 19 places to rank 79 in 2023,” he said.

Saidi added that, supported by the Kingdom’s status as one of the world’s top defense spenders, these efforts have shifted Saudi Arabia from a major arms importer into an ambitious, self-reliant player and trusted partner, making it an “international prize” for global defense companies seeking strategic and profitable partnerships.


Why 2025 Is Crucial for Saudi Arabia’s Military Technology Expansion​


Crucial Technology


Why 2025 Is Crucial for Saudi Arabia’s Military Technology Expansion is a question that many international analysts and defense experts are asking. The year marks a significant shift in the kingdom’s strategic direction as it moves beyond traditional oil-based influence to become a leader in regional and global military technology.

Saudi Arabia has always invested in military strength, but 2025 will be different. It is the year that several long-term plans, alliances, and technology transfers are expected to take shape. The kingdom is not just buying weapons—it is building a homegrown defense industry that could position it among the world’s most advanced military powers.

Vision 2030 Pushes Military Innovation​

image-545-1024x683.png

At the heart of this transformation is the Saudi Vision 2030, which includes strong support for defense sector growth. In 2025, the halfway mark to the 2030 goal, Saudi Arabia aims to show measurable progress. The goal is to localize 50% of its military spending, a move that would dramatically reduce dependency on foreign suppliers.

With the support of Vision 2030, the country is investing in local research, military education, and industrial zones dedicated to advanced weapon systems, cybersecurity, and AI-powered defense.

Launch of New Defense Facilities​

2025 is set to witness the launch of several new military production hubs, including drone assembly lines, missile system manufacturing centers, and AI defense software labs. These facilities will be operated by both Saudi experts and foreign partners under technology transfer agreements.

One of the most anticipated launches is a joint venture with European firms to co-develop electronic warfare tools that will provide Saudi forces with better intelligence, surveillance, and reconnaissance (ISR) capabilities.

This is a step forward in making Saudi Arabia a self-sufficient military power and a future arms exporter in the Middle East.

Strategic Partnerships Strengthen Capabilities​

In 2025, Saudi Arabia is expected to strengthen its defense partnerships with countries like the United States, China, and Turkey. These partnerships include not just arms purchases, but also critical technology transfer and local joint ventures.

A key example is the continued cooperation with the U.S. defense sector, which may lead to the setup of advanced training centers inside Saudi Arabia. These will train Saudi soldiers and engineers on the latest military technologies including unmanned aerial vehicles (UAVs), AI, robotics, and cybersecurity defense strategies.

Another vital partnership involves Turkish drone makers, who are already in talks with Saudi officials to begin local manufacturing of drones in the kingdom by mid-2025.

Domestic Defense Talent on the Rise​

Why 2025 Is Crucial for Saudi Arabia’s Military Technology Expansion also links directly to the development of domestic military talent. In 2025, Saudi universities will graduate the first wave of students from new defense-focused programs.

These students are trained in modern warfare strategies, AI defense systems, and military-grade cybersecurity. The rise of a homegrown defense workforce will make it easier for the country to maintain and upgrade its military technologies without heavy foreign dependence.

With this, the kingdom plans to boost local innovation, create thousands of jobs, and retain skilled professionals in its national defense ecosystem.

Cyber and AI Technologies Take Center Stage​

The Saudi government has prioritized cyber and AI as core technologies for military advancement. In 2025, several key AI projects are set to go live, including smart border control, predictive threat analysis, and automated battlefield support systems.

Saudi Arabia’s military AI systems are designed to integrate with existing defense infrastructure to improve decision-making speed and accuracy. These systems will also help reduce risks to human soldiers by managing drone fleets and automated ground vehicles.

Cybersecurity will also receive a massive upgrade. 2025 will see the rollout of a national military cybersecurity command center that will protect sensitive information and respond to any digital threats from enemy states or hacker groups.

Regional Power and Global Influence​

Why 2025 Is Crucial for Saudi Arabia’s Military Technology Expansion is not just about internal growth—it’s also about positioning the country as a dominant force in the region. Saudi Arabia wants to match or surpass regional rivals in terms of defense capabilities.

With ongoing instability in the region, Saudi Arabia’s military power is being viewed as a stabilizing force. The country wants to protect its borders, deter hostile neighbors, and secure its economic investments both locally and abroad.

2025 will be a year of visible military exercises, new weapons trials, and increased presence in international defense exhibitions to showcase Saudi-made technology.

Increased Military Spending with Purpose​

image-546-1024x536.png

While Saudi Arabia has always been one of the top military spenders, 2025 spending will be more targeted and strategic. The focus is on smart weapons, digital defense systems, and localized production instead of mass imports.

The budget allocation for the defense sector in 2025 includes a heavy emphasis on innovation, such as investing in satellite communications, autonomous combat vehicles, and anti-drone systems.

This spending strategy will allow Saudi Arabia to not only boost defense but also become a net contributor to regional security, making it a more trusted and influential partner on the global stage.

Final Thoughts​

Why 2025 Is Crucial for Saudi Arabia’s Military Technology Expansion lies in its potential to transform the kingdom into a leading defense technology hub. Through a combination of Vision 2030 goals, strategic international partnerships, investment in AI and cyber defense, and a growing local talent pool, the country is rapidly building a smarter, more self-reliant military force.

By the end of 2025, Saudi Arabia aims to have a stronger and more modern military with reduced foreign dependence and improved readiness to face future threats. This year could mark the start of a new chapter where Saudi Arabia not only protects its own borders but also helps shape the future of military technology in the Middle East and beyond.

 
KSA and the GCC as a whole is developing into an AI power which probably surprises many people out there.

Saudi Arabia

Saudi Arabia’s military AI applications align with the Kingdom’s Vision 2030 strategy. Vision 2030’s strategic framework emphasizes the integration of AI to develop indigenous defense technologies such as, autonomous systems, radar, and electronic warfare. By focusing on self-sufficiency, Vision 2030 aims to reduce reliance on foreign technology. This level of AI integration in defense is backed by the Prince Sultan Advanced Technology Research Institute (PSATRI), a government department in charge of facilitating technology transfer for defense and security sectors. Saudi Arabia currently invests $100 billion fund in AI and other technology and plans to put an additional $40 billion into AI companies in cooperation with Andreessen Horowitz, the Silicon Valley venture capital firm. Saudi Arabia’s key AI applications in defense are:

  • AI in Military Logistics: integrating AI-driven predictive maintenance and logistics management systems into military operations.
  • AI for Smart Border Security: AI-enhanced surveillance systems and drone monitoring for real-time threat detection and response, such as in Yemen.
Saudi-Arabia-surveillance-AIRCRAFT.jpeg
Saqr-1 (Source: Leonardo Saudi Ltd)


Heavy appliance in non-military tech sectors as well. A good recent example of this:

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Saudi Arabia accelerates AI push with HUMAIN at the helm

Saudi Arabia accelerates AI push with HUMAIN at the helm

location, financial might, excess energy, expanding private sector, and digitization push. (AFP)


Updated 27 July 2025
MOHAMMED L. KINANI
July 26, 2025

  • Kingdom positioning itself as hub for advanced AI applications across the Middle East and beyond
JEDDAH: Saudi Arabia is ramping up its artificial intelligence ambitions with the launch of HUMAIN, a flagship initiative backed by the Public Investment Fund, as part of its broader drive to become a global AI powerhouse.

With more than $40 billion earmarked for AI-related investments under Vision 2030, the Kingdom is scaling up infrastructure, forging global tech partnerships, and positioning itself as a hub for advanced AI applications across the Middle East and beyond.


“Artificial intelligence has become a strategic priority for the Kingdom of Saudi Arabia as it aligns strongly with the country’s economic transformation goals and enhances governance,” Youssef Saidi, an economic expert and research fellow at the Economic Research Forum, told Arab News.

He added that the Kingdom’s AI strategy aims to position the country as a global AI leader by the end of the decade.

“Saudi Arabia is leveraging AI to drive innovation and economic growth across various sectors, including healthcare, finance, and logistics, helping the country’s transition into a knowledge-based economy. Saudi Arabia is investing heavily in AI research and development to become a regional leader in this field,” he added.

HUMAIN launch

Wholly owned by PIF, HUMAIN was launched in May by Crown Prince Mohammed bin Salman to develop advanced Arabic language models and establish Saudi Arabia as a global leader in AI infrastructure and innovation.

The initiative is expected to support local innovation, develop intellectual property, and attract top global AI talent and investment.

“HUMAIN is due to offer one of the world’s most powerful multimodal Arabic language models, advanced AI tools, and next-generation data centers,” said Saidi.

He added: “HUMAIN is expected to contribute to Saudi Arabia’s AI ecosystem by fostering human-centered AI innovation, encouraging the design of AI systems that are ethical, inclusive, transparent, and accountable.”

The company aims to enhance human capabilities, improve quality of life, and address real-world challenges relevant to Saudi society. Its focus spans strategic sectors including energy, healthcare, manufacturing, and financial services.

Building talent

To ensure long-term sustainability of its AI sector, Saudi Arabia is also prioritizing talent development and creating an attractive environment for global expertise.

Speaking to Arab News, Yaseen Ghulam, associate professor of economics and director of research at Riyadh-based Al-Yamamah University, said the Kingdom aims to train 20,000 data and AI experts by 2030 through investor-friendly regulations and public-private partnerships.

He cited initiatives such as the ATHKA AI Olympiad and Elevate AI training program as key contributors to public education and skills development. “Microsoft, Huawei, Accenture, Atomcamp, and Oracle are also establishing AI academy programs,” Ghulam added.

He added that the Kingdom is gaining global traction as a destination for skilled professionals, noting that it ranks third globally in AI hiring growth, with women leading in skills penetration.

“The country pays AI experts 20 percent more than the world average, along with additional incentives,” said Ghulam.

Tech partnerships

Saudi Arabia’s AI ambitions are being bolstered by collaborations with global tech giants, particularly in semiconductors and advanced computing.

“NVIDIA and AMD, two major players in the graphics processing unit market, are playing a key role in Saudi Arabia’s AI infrastructure development,” said Saidi.

He noted that NVIDIA is partnering with the Kingdom to build AI factories powered by its Grace Blackwell supercomputers, with a projected capacity of 500 megawatts. “The partnership between Saudi Arabia and NVIDIA aims to establish hyperscale AI data centers, enabling Saudi Arabia to train and deploy sovereign AI models at scale,” the research fellow added.

NVIDIA is also working with the Saudi Data and Artificial Intelligence Authority to train thousands of developers in accelerated computing and AI.

Saidi highlighted the key role of global tech giants like California-based semiconductor firm Advanced Micro Devices in supporting Saudi Arabia’s AI ecosystem and driving its digital transformation agenda.

“AMD is investing up to $10 billion to deploy 500 megawatts of AI compute capacity over the next five years and collaborating with Saudi organizations to develop AI enterprise platforms, supporting digital transformation across industries,” he said, adding that the NVIDIA and AMD investments will have a great benefit in developing human capital and shaping the future of AI-driven activities in Gulf Cooperation Council countries.

Strategic edge

Ghulam pointed to several factors that position the Kingdom as a strong global AI contender, including its recognition as the world leader in government strategy in the sector in the 2024 Global AI Index.

“The country has a significant advantage in hosting data centers and training AI models due to its strategic location, financial might, excess energy, expanding private sector, and digitization push,” he said.

The Kingdom is home to over 240 AI-focused businesses and has seen a fivefold increase in its AI patent portfolio since 2019. Heavy investment in digital infrastructure is also enhancing global connectivity and AI dataset capabilities.

Ghulam added that Saudi Arabia has one of the strongest AI-related physical infrastructure footprints in the region, with 10 supercomputers and the highest number of colocation data centers in the Middle East.

“The Arabic language AI models that are to be developed by HUMAIN are expected to serve more than 450 million people worldwide who speak Arabic around the world,” said Ghulam.

With foundational work well underway, Ghulam said the Kingdom has set an ambitious benchmark for the years ahead.

“Saudi Arabia aims to become one of the top 15 AI prepared countries by 2030, investing heavily in energy, data centers, semiconductors, and connectivity,” he said.

He added that the Kingdom’s public AI spending commitments — both current and projected — surpass those of the US and China.

“HUMAIN plans to build 1.9 gigawatts of data center capacity by 2030 and collaborate with NVIDIA to ship cutting-edge GPUs to Saudi Arabia,” he concluded.


Saudi AI firm Humain is pouring billions into data centers. Will it pay off?​

PUBLISHED WED, AUG 27 2025
11:44 AM EDT UPDATED WED, SEP 10 202510:41 AM EDT

Natasha Turak

  • Launched last year, Humain aims to position Saudi Arabia as the region’s AI hub.
  • The company, owned by Saudi Arabia’s massive Public Investment Fund, has partnerships with Nvidia, AMD and Groq.
  • Questions remain as to the cost and environmental impact of running and cooling miles of data centers in the Middle East’s scorching deserts, as well as the ability to draw AI engineers to live in Saudi Arabia.
Tareq Amin, CEO of Humain, and Jensen Huang, CEO of NVIDIA, attend the Saudi-U.S. Investment Forum, in Riyadh, Saudi Arabia May 13, 2025. REUTERS/Hamad I Mohammed

Tareq Amin, CEO of Humain, and Jensen Huang, CEO of NVIDIA, attend the Saudi-U.S. Investment Forum, in Riyadh, Saudi Arabia May 13, 2025.
Hamad I Mohammed | Reuters

Saudi Arabia is looking to make data its new oil — if artificial intelligence and data center company Humain gets its way.

The company, owned by the Saudi kingdom’s massive sovereign wealth fund, the Public Investment Fund, is looking to build out data center capacity in a country with seemingly unlimited land and abundant energy resources.

Faced with lower oil prices and soaring costs for domestic megaprojects like the futuristic region of Neom, the kingdom is hoping that surging demand for the data and computing facilities will serve as a reliable cash cow for decades to come.

“Our ambition is very clear. We want to be the third-largest AI provider in the world, behind the United States and China,” Tareq Amin, Humain CEO, told CNBC’s Access Middle East on Tuesday.

Launched in May of this year, just a day before U.S. President Donald Trump’s visit to the Kingdom, Humain aims to deliver full-stack AI capabilities across data centers, infrastructure, cloud platforms and advanced AI models, which it hopes will position Saudi Arabia as the region’s AI hub.

Saudi Arabia faces stiff competition from the neighboring United Arab Emirates, which is forging ahead with its own major partnerships with U.S. tech giants on a number of projects, including the Stargate Campus in Abu Dhabi. The Stargate Project is a $500 billion private sector AI-focused investment vehicle, announced by OpenAI in January in partnership with Abu Dhabi investment firm MGX and Japan’s SoftBank, and will be built with the help of Oracle, Nvidia and Cisco Systems.

While Saudi Arabia’s data center market is projected to grow from $1.33 billion in 2024 to $3.9 billion by 2030, it still has a long way to go before reaching the scale of the U.S. market, currently valued at over $200 billion.


Further questions remain as to the cost and environmental impact of running and cooling miles of data centers in the Middle East’s scorching deserts, as well as the ability to draw AI engineers to live in Saudi Arabia.

Access to skill and talent remains a major challenge — to bridge that gap, Saudi Arabia relies heavily on foreign talent, with professionals that require high salaries and often don’t stay in the kingdom for a sustained period of time.

Even with the offer of ample pay, drawing and retaining AI engineers will prove difficult for the kingdom. AI-related roles in Saudi Arabia remain largely vacant, with a 50% hiring gap, according to Minister of Human Resources and Social Development Ahmed Al-Rajhi.

In comparison to the UAE, which has a more consistent strategy of attracting investment and executing government strategy, Saudi Arabia is more likely to “struggle” when it comes to AI engineers, said Baghdad Gherras, a UAE-based venture partner at Antler, which invests in early-stage AI ventures.

“I think the bottom up version of Saudi is extremely concentrated at the top, but there is a kind of ... lag at the middle management and how the vision is being communicated and translated on the ground,” he said.
Humain does not disclose investment targets, but has announced $23 billion for strategic technology partnerships and a $10 billion venture fund. The PIF, which owns it, oversees nearly $1 trillion in assets across a wide swathe of sectors and countries.

“My investments are all strategic in nature. Any startup that is really addressing my number one requirement ... the joint IP creation, the localization, workload consumptions in Saudi, is really where we’re going and investing capital in,” Amin said. “So I’m putting a lot of capital in infrastructure, meaning, think about Groq and other companies that we will be investing in, and then the application layers.”

California-based AI company Groq in February secured a $1.5 billion commitment from Saudi Arabia for expanded delivery of its chips. In December, Groq built what it said was the region’s largest AI inference cluster in the kingdom.

“GroqCloud services are now available to nearly four billion people regionally adjacent to the KSA. This deployment of Groq AI inference infrastructure is now enabling service to the EMEA and South Asia markets in ways unseen before,” the company said earlier this year in a statement.

Humain is also in partnership with U.S. chipmaking giants AMD and Nvidia, for chips that will supply Humain’s ambitious data center construction plans.

The PIF-owned firm has started construction on two large campuses in the kingdom made up of 11 data centers. Each data center will have a 200-megawatt capacity. By the fourth quarter of 2025 Humain wants 50 megawatts built, followed by an additional 50 megawatts every quarter into 2026.

By 2030 it is targeting installation of 1.9 gigawatts, and six gigawatts by 2034.


Saudi Arabia launches Mostaqbali program to train 50,000 Saudis in AI, digital skills​



National program to upskill 100,000 Saudis in AI ‘crucial,’ says official


Saudi Arabia's New Pitch to Wall Street: Less Neom, More AI

I cannot post the entire article as I don't have access to Bloomberg. Anyway it cannot be underestimated how important this development is for KSA.

 

Trump Ally Gets F-35 Boost From Pentagon


PUBLISHED

NOV 05, 2025 AT 10:54 AM EST

Amira El-Fekki‎

By Amira El-Fekki‎
Middle East Reporter

The Trump administration is weighing Saudi Arabia’s request to purchase F-35 fighter jets, a potential deal that has reportedly cleared a key Pentagon hurdle, sources familiar with the matter told Reuters.

The Trump administration has mounted a major push for deeper Gulf security partnerships, through arms sales and an expanded U.S. military presence. The White House recently signaled a new security initiative with Qatar, and Riyadh is understood to be eyeing a similar framework with Washington.

Newsweek has contacted the U.S. Defense Department for comment.

Why It Matters​

The kingdom has requested up to 48 F‑35 jets, but the deal had been stalling amid Washington’s reluctance because of its policy of maintaining Israel’s qualitative military edge and concerns about regional partners’ ties to strategic rivals.

The F-35 incorporates stealth technology that allows it to evade enemy detection and is considered to be one of the world's most advanced fighter aircraft.

The recent move comes ahead of a U.S. visit this month by Crown PrinceMohamed bin Salman, an ally and "friend" of President Donald Trump. Saudi Arabia was Trump's destination in May on the first overseas trip of his second term and the two leaders signed an historic $142 billion arms deal that, according to the White House, is the largest defense sales agreement in history.

AP25295518685616.jpg

President Donald Trump and Saudi Crown Prince Mohammed bin Salman meet at the Royal Palace in Riyadh, Saudi Arabia, on May 13, 2025. | Alex Brandon, File/AP Photo

What To Know​


U.S. officials told Reuters on Wednesday, on condition of anonymity, that the F-35 deal is moving through the system and has now reached Secretary of Defense level, after the Pentagon’s policy office reviewed the potential transaction for months.

Under the Biden administration, F‑35 sales to Gulf states have been tied to the Abraham Accords and broader normalization of relations with Israel. The United Arab Emirates (UAE) and Bahrain signed the accords in 2020.

The UAE broadened diplomatic, cultural and economic ties with Israel in the years that followed, developing faster than the first Arab states to sign peace treaties with Israel—Egypt and Jordan—in the 1970s. Still, an F‑35 deal with the UAE did not materialize, and amid continued U.S. review and policy constraints, the UAE eventually withdrew its purchase request.

Saudi Arabia has long been seen as the next major potential candidate to sign the Abraham Accords, but the kingdom has been reluctant to put pen to paper as long as a negotiated solution for Palestine remains unresolved. Riyadh has actively pushed for the recognition of a Palestinian state and successfully advanced the agenda at the United Nations alongside France in the aftermath of the Gaza war.

What People Are Saying​

A military and defense blogger using the account handle @SMmiliitary wrote in Arabic on X on Wednesday: "If Saudi Arabia acquires 48 F‑35s, the entire balance of power in the Middle East would be reshaped. Soon, talk of Israeli superiority will become a thing of the past; this deal would plague the haters if it went through."

President Donald Trump said told FOX Business' Maria Bartiromo on October 17, speaking of the Abraham Accords: "I hope to see Saudi Arabia go in and I hope to see others go in. I think when Saudi Arabia goes in everybody goes in."

Brian Katulis, senior fellow at the Middle East Institute, wrote in an analysis on October 27: "Trump 2.0’s inclination toward an 'America First' unilateralism can be seen in how it has managed most key relationships across the world, particularly in Europe and the Western Hemisphere. But that tendency has seemingly been more muted and less present in its approach to the Middle East, a region that is higher on the priority list for Trump’s national security agenda than it was during the opening months of the preceding US administration."

What Happens Next​

Sources say the deal still requires Cabinet approvals, presidential sign-off, and congressional notification before receiving the ultimate green light. The Saudi leader is expected to visit the U.S. on November 18 and meet with Trump at the White House.


F-35s Over Saudi Arabia: Pentagon Approval Marks Turning Point in Stealth Fighter Export Policy

Middle East , Aircraft and Anti-Aircraft​

Military Watch Magazine Editorial Staff
November-5th-2025

U.S. Air Force F-35 Fifth Generation Fighter

U.S. Air Force F-35 Fifth Generation Fighter

The U.S. Department of Defence has approved the sale of up to 48 F-35A fifth generation fighters to Saudi Arabia, following months of high level discussions within the Pentagon, which has left the decision with the White House reviving whether to offer the fighters to the Gulf state. The decision was taken ahead of a visit to the United States by Crown Prince Mohammed bin Salman, who during previous visits to the country was assessed by analysts to have faced significant pressure to increase defence procurements from the United States. The sale will require further approvals at the Cabinet level, a sign-off from President Donald Trump, and notification of Congress, before proceeding. If procured, the fighters are expected to replace the Royal Saudi Air Force’s fleet of ageing Tornado attack jets, and eventually possibly its small Eurofighter fleet.


Royal Saudi Air Force Tornado Attack Jet

Royal Saudi Air Force Tornado Attack Jet

The F-35 has previously only been marketed to NATO allies and a small number of non-NATO developed economies such as South Korea and Switzerland, with a sale to Saudi Arabia potentially marking a turning point in the program after which it is offered to a wider range of clients. Unconfirmed reports indicate that the Trump administration has been positively inclined towards approving sales to Morocco and the United Arab Emirates, with a policy shift potentially allowing for further sales to potential clients such as Indonesia and Thailand. The loosening of restrictions on F-35 exports may be influenced by both the unfavourable trends currently affecting the U.S. economy, which would make tens of billions of dollars of additional export orders a highly welcome development. The expected fielding of F-47 sixth generation fighters by the mid-2030s is also likely to make baseline variants of the fifth generation F-35 appear less technologically sensitive.

Royal Saudi Air Force F-15s Escourt U.S. Air Force B-52H Strategic Bomber

Royal Saudi Air Force F-15s Escourt U.S. Air Force B-52H Strategic Bomber

Saudi Arabia has long been provided access to the United States’ most advanced military aircraft, having been one of just three countries to purchase the top U.S. Air Force fighter the F-15s during the Cold War alongside Japan and Israel, before being the first in the world to acquire a heavily modernised ‘4+ generation’ variant of the aircraft, the F-15SA, in the 2010s. The supply of F-35s could ensure that the country does not place orders for the rival Chinese J-35 fifth generation fighter, which has a significantly superior flight performance, longer range, and larger sensor suite while being less costly to procure. President Trump previously highlighted that offering advanced armaments to Gulf states was critical to prevent China or Russia from making inroads into these key markets.

Chinese J-35 Fifth Generation Fighter

Chinese J-35 Fifth Generation Fighter

Although Riyadh was in the early 2020s seen to increasingly be balancing its geopolitical position between the Western Bloc and China, the success of the United States and its strategic partners in toppling the Syrian government in December 2024 was considered a turning point in the regional balance of power that has left Western dominance effectively unchallenged. This may be a factor in the decision to favour the F-35 over Chinese alternatives. The loosening of export restrictions could have particularly detrimental impacts on European fighter programs, which have been able to achieve sales exclusively in countries which, for political reasons, have not been allowed to purchase the more sensitive F-35. It may also derail ongoing efforts by Boeing to market additional F-15s to the Royal Saudi Air Force.


If the order of 48 F-35 (SA potentially) would be genuine and go trough, I hope this will be a first order with more F-35 (SA) to follow afterwards.

48 is a far too small number considering the huge size of KSA and geographical challenges.

UAE initially ordered 50 F-35 if I recall and UAE is around 25 times smaller than KSA with almost 30 times the smaller native population.

I would love to see at least 100 F-35 (if not more) and for KSA to become a key hub for F-35 maintenance in the region long-term.

This would also give a huge lift for the local aviation industry within KSA and could serve as a springboard for later local or foreign joint-projects such as GCAP, KAAN etc.

KSA has a large familiarity with US weapon systems already and with the F-15's in terms of maintenance, assembly and producing spare parts locally.

That would be my modus operandi at least. Obviously if this deal goes through it will change the regional landscape military wise.
 
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Lokchead Martin CEO speaking about KSA and the regional headquarter that they have set up in KSA:

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Now everything makes more sense if you look at the wider picture

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Great news.

In other related news (AI, energy etc.):

Aramco CEO says Saudi Arabia’s cheap energy will turn kingdom into a global AI data center leader

PUBLISHED TUE, NOV 4 2025 1:38 PM EST
thumbnail

Spencer Kimball@SPENCEKIMBALL

KEY POINTS
  • Aramco disclosed in October that it will become a significant shareholder in Saudi-backed AI company Humain.
  • Aramco CEO Amin Nasser said Saudi’s supply of cheap gas and renewables will transform the kingdom into a global AI leader.
Saudi Arabia will capitalize on its abundant supply of cheap natural gas and renewables to transform the kingdom into a global leader in artificial intelligence, Aramco CEO Amin Nasser told CNBC in an interview.

Aramco, the world’s largest oil company, disclosed in late October that it plans acquire a significant minority stake in the new artificial intelligence company Humain. Saudi Arabia’s sovereign wealth fund, PIF, is the majority owner of Humain, which launched in May.

Humain will become Saudi’s national AI champion and will grow into a leader in the space, Nasser told CNBC’s Sara Eisen in an interview that aired Tuesday. Humain CEO Tareq Amin has said Saudi is aiming to become the third biggest player in AI worldwide behind only the U.S. and China.

“Here, if you want renewable, you will find the lowest cost renewable,” Nasser said. “If you want gas, you will find the lowest cost gas. Energy is available and land is also available to build all these things.”

Data centers that train and run AI applications are requiring tremendous amounts of electricity, which is typically generated either by renewables and natural gas. The facilities will consume almost four times the electricity of the global electric vehicle fleet by 2030, Nasser said. They will primarily be powered by gas but also renewables, the CEO said.

A significant portion of Armaco’s capital spending is going toward boosting natural gas production more than 60% by 2030 to meet demand and toward the investment in Humain, Nasser said. Aramco is targeting capital expenditures of $52 billion to $58 billion this year, he said.

Armaco sees oil and gas demand growing for decades to come on consumption in developing markets particularly in Asia, Nasser said. Demand will grow by 1.1 million barrels per day to 1.3 million bpd this year and almost the same in 2026, he said.

“There is huge potential for growth in emerging economies,” he said.


Saudi Arabia is making a massive bet on becoming a global AI powerhouse

By
Tala Alrajjal
NOV 2, 2025

Guests stand at the booth of Saudi artificial intelligence company Humain.

Guests stand at the booth of Saudi artificial intelligence company Humain.
Fayez Nureldine/AFP/Getty Images

Saudi Arabia is turning its oil wealth toward its massive AI ambitions.

Its chief investment vehicle is Humain, a homegrown company that is building out a full stack of data centers, cloud capabilities, large language models and applications. It’s owned by the Kingdom’s nearly $1 trillion sovereign wealth fund.

Crown Prince Mohammad bin Salman unveiled Humain in May ahead of President Donald Trump’s state visit to Riyadh. This week, at the annual Future Investment Initiative in the same location, the scale, ambition and deep pockets behind the project came into clearer focus.

Humain CEO, Tareq Amin, is setting out to make Saudi Arabia the world’s third-largest AI market, after the United States and China. It’s a bold ambition for a newcomer to the industry, but Amin argues the Kingdom’s competitive edge lies in its abundant and cheap energy resources that can feed the seemingly insatiable demand for computing power.

“We have an advantage in Saudi Arabia,” he told CNN’s Becky Anderson. “Look at this country’s amazing energy grid that doesn’t require a company like Humain to build the substations and the power to deliver that to a data center. That means I have saved 18 months of time.”

Humain plans to build up to six gigawatts in data center capability across the country by 2034, with a rolodex of key AI partners, including Nvidia, AMD, Amazon Web Services, Qualcomm and Cisco.

On Tuesday, Humain announced a $3 billion deal with private equity giant Blackstone to build data centers in the Kingdom.

It also publicly launched Humain One, an AI-powered operating system where users speak or type to a computer to tell it to perform tasks, rather than clicking on icons, as is conventional in systems like Windows or iOS.

Humain has been using the AI system internally to run much of its HR, finance, legal, operational and IT departments. Amin says there is now only one employee in his payroll department, with AI agents handling the rest.

The Kingdom is entering the closing stretch of its Vision 2030 economic transformation plan facing headwinds from declining oil prices and delays in its construction of giga-projects like Neom, placing new urgency on its AI push to support the growth of the Arab world’s largest economy.

It also faces competition from the neighboring United Arab Emirates, which has its own AI vehicle, G42, and recently secured a landmark deal with the Trump administration to build “Stargate UAE,” a sprawling $500 billion data center project billed as the largest outside the United States, with the help of OpenAI, Oracle, Nvidia and Cisco.

Asked whether there’s room for two regional heavyweights, Amin said he supports democratizing AI, while touting Humain’s robust operations.

“It is good for humanity to have knowledge — especially around AI — not to be all centralized in one location. So it’s good what is happening in the UAE. It’s very good what’s happening in Saudi Arabia,” he said. “I will tell you what we decided to do, which is very different … Humane is not a holding company. We are an operating company.”

 
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Fantastic news.

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1762809033041.png

The development going in the right direction.

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The Global "The Spectator Index":

The Saudi economy continues its steady progress, driven by a 9.3% year-on-year increase in industrial production, signaling the strength of the industrial transformation within Saudi Vision 2030.
 
Following the F-35 deal and the formalization of agreements related to the KAAN program — including coproduction in KSA and technology transfer — a broader strategic pattern becomes increasingly evident.

You also have this:

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and now this:

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Interesting comment by a fellow Saudi Arabian, not sure how accurate it is, but I would not be surprised:

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Earlier reports have reported time and time again that Italy is also very eager for KSA to join. In particular as military ties with Italy are great and increasing as well as the economic ties with Meloni having visited MbS several times already. Even in Al-Ula. So it is likely that it is indeed the Japanese that are the stumble block currently.


Specifically, I argued months ago that KSA would leverage participation in multiple defense projects to accumulate technical expertise and operational experience, ultimately laying the groundwork for a domestic fighter aircraft program. Long before all of those deals became official.

My assessment is that we are roughly where Turkiye was a decade ago. This gap can likely be closed more quickly than before, given the rise of AI — an area in which KSA has positioned itself as a significant global player — as well as its substantially greater financial resources and centralized leadership structure. The region is becoming increasingly volatile, which adds to the urgency. I do not see any major stumbling blocks at present. Ultimately, the outcome depends on government priorities and whether the investment is considered worthwhile, but KSA appears to be steadily advancing toward greater strategic military autonomy, a trajectory that would be difficult to reverse absent a major internal disruption.
 
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UK Renews Push for Saudi Arabia to Invest in Fighter Jet Program​


The UK is renewing a push for Saudi Arabia to invest in its next-generation fighter jet program alongside Italy and Japan, as costs spiral and a rival project stalls.

A flurry of diplomatic activity this month saw Prince William and defense minister Luke Pollard both visit Riyadh amid the effort for Saudi Arabia to join the Global Combat Air Programme (GCAP) in some capacity. UK Defence Secretary John Healey told Bloomberg that he and his counterparts in Rome and Tokyo are “developing any discussions with potential partners together.”

“We’ve set out the terms in which Saudi could become involved with GCAP,” Healey told Bloomberg in an interview last week during the Munich Security Conference, while emphasizing his immediate focus is advancing the program. “We’re driving this program forward: the Saudis have their own decisions to make.”

Talks for Saudi Arabia to join the program had been building pace over a year ago, but were held up due to opposition from Japan. That country’s new leadership — Sanae Takaichi took over as prime minister in October and won elections this month — is more amenable to Saudi involvement.

Britain’s fresh diplomatic push comes as manufacturers and allies grow frustrated with the Labour administration’s delay in publishing a plan to allocate fresh defense funding. Though GCAP is expected to be handed billions of pounds in the plan, the delay has led to uncertainty around its ability to finance key contracts.

The Italian government has been particularly irked by the UK’s failure so far to commit to a helicopter contract for Leonardo, one of the companies involved in GCAP, according to people familiar with the matter, who spoke on condition of anonymity in order to voice internal concerns.

The expected price of the project has also ballooned: Italy now expects early-phase costs to reach €18.6 billion ($22 billion), compared to around €6 billion at 2021 prices when the program was first drawn up, Reuters reported. Multinational defense programs are often beset by spiraling costs and delays, though the GCAP program has been steadily progressing. The Italian parliament approved almost €9 billion of funding for the project last week.

Saudi Arabia could provide a desired cash injection into the program: the UK’s defense committee last year said expanding GCAP “could bring benefits including burden-sharing of costs, access to additional markets, and technical expertise.”

Still, an equal 33.3% work-share in the project between Leonardo, BAE and Japan Aircraft Industrial Enhancement has already been agreed, which is likely to complicate Saudi Arabia’s ability to become a full member of the program.

The Middle Eastern nation is interested in joining the program, one of the people said, though cautioned that its desire could be lessened as a result of a recent deal to acquire advanced F-35 fighter jets from the US. Saudi Arabia last year was designated a major non-NATO ally of the US, alongside Israel, Qatar and Egypt, as part of a broader agreement to strengthen military cooperation.

No new decisions have been taken trilaterally between Britain, Italy and Japan regarding additional countries joining the program, one of the people said.

The UK has long been supportive of the Saudi Arabia joining the project to build a sixth-generation stealth fighter for service from 2035 but the other two partners have been more skeptical about letting the Middle Eastern nation enter critical supply chains and access high-end technology, according to people familiar with the matter.

Japan has been most wary due to national security and intellectual property concerns, they said, with Italy more convinced by the partnership. But as Tokyo looks to start retiring its aging fleet of F-2 fighter jets from 2035, it has become more open to Saudi participation if it helps keep the program on track and doesn’t dilute the work-share for Japanese companies.

“GCAP is a strategically important project that links the Indo-Pacific and the Euro-Atlantic regions, and it is extremely important to accelerate this project,” Defense Minister Shinjiro Koizumi said at the recent Munich Security Conference. He and Healey discussed the project in the German city last week.

Italian premier Giorgia Meloni also discussed ways to speed up investment in the program last month when she visited Japan, some of the people said. Foreign Minister Antonio Tajani has said that he was open to potential expansion.

The Italian government declined to comment. Saudi Arabia didn’t respond to a request for comment. A spokesperson for the UK’s defense ministry said all three nations have “highlighted an openness to working with other nations.”

The GCAP program has made progress in the last year, with a headquarters and joint venture between the three companies established and more than 6,000 engineers working on the project. BAE Chief Executive Officer Charles Woodburn told reporters on Wednesday that though the project is “moving fast,” he’s eager for Britain’s investment plan to be published so they can “crack on with it.”

“This is a program that is substantial, with momentum, and that’s the main focus,” Healey told Bloomberg. He’s said the government is working at speed to publish the plan. It’s expected as soon as next month.

GCAP’s progress comes in contrast to a rival fighter jet program between France, Germany and Spain which has stalled due to squabbles between Paris and Berlin on who should lead. German Defense Minister Boris Pistorius insisted that it’s “not dead yet” but most observers expect it to be dramatically scaled back, fueling speculation that Germany may also want to join GCAP.

Healey didn’t rule that out when asked by reporters in Munich, saying: “Germany and France will make their own decisions and then we’ll see where we are.”

— With assistance from Aaron Kirchfeld, Kate Duffy, Paul Wallace, and Alberto Brambilla

 

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