Skip to content Skip to Search
Skip navigation

Saudi grant programme to develop local defence sector

military helicopters Unsplash/Juli Kosolapova
Saudi Arabia wants to channel 50 percent of its military spending to domestic companies
  • $177m of grants
  • Grants to go towards research and design
  • Defence spend to be $86bn in 2028

Two Saudi government entities have launched a four-year programme of grants worth 664 million riyals ($177 million) to support the development of a local defence sector, part of plans to diversify its arms industry sources by 2030.  

The General Authority for Defense Development and Public Investment Fund-owned Saudi Arabian Military Industries (Sami) launched the initiative on October 10.

It will provide defence authority grants for “research in targeted areas and building special facilities to support related technology development”, the Saudi Press Agency said. 

Sami will form partnerships with various national development centres and Saudi universities to help “design and eventually industrialize the outcomes of their defense development activities and meet military and security entities’ needs”, Spa said. 

Sami was established by PIF in 2017 as part of government plans to channel 50 percent of military spending to Saudi companies by 2030 in a bid to reduce its massive arms bill. 

Sami said last year it would set up one of the world’s biggest munitions factories, including the production of a Saudi-made drone. 

Saudi Arabia was ranked fifth in the table of world military spenders in 2022, behind the United States, China, Russia and India.

Defence spending will grow 4.5 percent a year to $86 billion in 2028, from $65 billion in 2022 and a defence budget of $69 billion for 2023, defence analysts GlobalData said in a report last month

Latest articles

Over the first half of the year Sanad Group signed deals with international airlines including Asiana Airlines and Deucalion Aviation

Mubadala-backed Sanad Group reports 53% revenue growth

Sanad Group, the Abu Dhabi-based global aerospace engineering and leasing company, has seen revenues increase by more than half over the first six months of the year. Figures released to AGBI show revenue totalling AED2.3 billion ($620 million) was reported in the first half of the year, up from AED1.5 billion over the same period […]

Malaysia’s HSS Engineers Berhad and its emirati consultancy HSS signed the deal top oversee construction with the Baghdad municipality

UAE company in joint venture to build Baghdad metro

A Malaysian engineering company and its UAE affiliate have jointly won a $316 million contract to oversee the construction of the new Baghdad metro. The building of the planned 148-kilometre network and its 64 stations across the Iraqi capital was slated to begin this month and end in 2029. This timeline might be delayed, however, […]

Mazaya Holding Oman fraud

Al Mazaya reports legal proceedings after alleged fraud

The Omani subsidiary of Al Mazaya Holding has uncovered alleged fraudulent activity by employees of the company, estimated at OR242,000 ($628,000). A criminal complaint has been filed by the Kuwait-based real estate development giant against “some of the company’s employees” regarding collections of the sale and rent of some units, according to filings on Boursa […]