Saudi Arabia has announced an increase in its defense budget for 2025, raising military expenditures to $78 billion from $75.8 billion in 2024. This allocation accounts for 21% of the country’s public spending and 7.1% of its gross domestic product, according to Ahmad Al-Ohali, Governor of the General Authority for Military Industries (GAMI). The increase follows a consistent growth trend, with an annual average rise of 4.5% since 1960. Saudi Arabia is now among the five largest military budgets globally and remains the leading defense spender in the Arab world.
As one of the world’s largest importers of military equipment, the country continues its strategic shift under Vision 2030, a program launched in 2016 to diversify the economy and enhance domestic industrial capabilities, including in the defense sector. A key objective of this initiative is to localize 50% of defense expenditures by 2030. Ahmad Al-Ohali expressed confidence in achieving this target, stating in February 2024 that the country could even exceed this threshold before the decade’s end.
Over the past year, Saudi Arabia has undertaken several defense acquisitions and industrial initiatives aimed at modernizing its armed forces and strengthening its military industry. In February 2024, the country ordered the South Korean Cheongung II air defense system for $3.2 billion. This medium-range missile system complements existing capabilities such as the Patriot and THAAD systems, enhancing national air defense.