Security, Aerospace & Defence
From The Report: Saudi Arabia 2024
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Global military expenditure reached a record $2.4trn in 2023, driven by rising tensions worldwide, with Saudi Arabia allocating $75.8bn – a 4.3% increase from 2022 – representing 7.1% of its GDP and ranking fifth globally for overall military spending. The Kingdom’s defence industry is expanding through joint ventures and strategic partnerships, with new facilities like Al Kharj, expected to launch in 2026, and Malham, set to open in 2024. Meanwhile, Saudi Arabian Military Industries aims to localise defence production, targeting 50% by 2030, up from 15% in 2023. Investment is also focused on modernising systems with the deployment of the Hazem combat management system on certain warships. While foreign collaboration remains key, Saudi Arabia’s defence sector continues to grow, largely funded by oil revenue, with ongoing talks with the US on security and nuclear support.

This chapter also contains an interview with Alhamedi Alanezi, CEO and President, Arabsat; and Joseph Rank, CEO for Saudi Arabia and Africa, Lockheed Martin.

Articles from this Chapter

Overview

Fortified strength: Increased participation of international organisations contributes to wider efforts to localise military spending
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Amid Russia’s ongoing conflict with Ukraine and tensions in the Middle East, Taiwan Strait and elsewhere, global military expenditure increased 6.8% to reach $2.4trn in 2023 – the highest level ever recorded by the Stockholm International Peace Research Institute (SIPRI). Saudi Arabia allocated approximately $75.8bn to its military that year, marking a 4.3% increase from 2022. This expenditure represented 7.1% of the country’s GDP, the fourth-highest percentage globally, after Ukraine (37%),…

Interview

Atmospheric growth: Alhamedi Alanezi, CEO and President, Arabsat, on the domestic development of advanced satellite technologies
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Interview: Alhamedi Alanezi, CEO and President, Arabsat How are advancements in satellite communication affecting global connectivity and the Kingdom’s ambitions in the aerospace sector? ALHAMEDI ALANEZI: Advancements in satellite communication are revolutionising global connectivity by enabling faster, more reliable data transmission across regions that were previously underserved or difficult to reach. Globally, we are seeing significant strides being made in areas like low-earth orbit satellites,…

Interview

Domestic foundations: Joseph Rank, CEO for Saudi Arabia and Africa, Lockheed Martin, on localising production and developing a domestic workforce
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Interview: Joseph Rank, CEO for Saudi Arabia and Africa How localised is defence manufacturing, and what is the role of the private sector in this process? JOSEPH RANK: The private sector plays a vital role in Saudi Arabia’s defence manufacturing, as it is responsible for the actual production. The government can invest directly or through industrial participation programmes to incentivise this development. However, it is clear that both sides need to work together. Progress has been made in…