Saudi Arabia Defense Market Size, Trends, Budget Allocation, Regulations, Acquisitions, Competitive Landscape and Forecast to 2028

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Explore the following in-depth analysis and actionable insights in the Saudi Arabia Defense Market’ report:

  • Saudi Arabia defense budget: Detailed analysis of the Saudi Arabia FY2023 defense budget broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.
  • Regulation: The procurement policy and process is explained. This is coupled with an analysis of Saudi Arabia’s military doctrine and strategy to provide a comprehensive overview of the country’s military regulation.
  • Security Environment: Political alliances and perceived security threats to Saudi Arabia are examined and they help to explain trends in spending and modernization.
  • Import and Export Dynamics: Analysis of prevalent trends in the country’s imports and exports over the last five years.
  • Competitive landscape and strategic insights: Analysis of the competitive landscape of the country’s defense industry.

How is the ‘Saudi Arabia Defense Market’ report different from other reports in the market?

Making the right business decisions that are based on in-depth analysis and understanding of the market dynamics, to gain a competitive edge is key to every country’s defense department.  Below are the top benefits you will gain by purchasing this report:

  • Determine prospective investment areas based on a detailed trend analysis of Saudi Arabia’s defense market over the next five years.
  • Gain an in-depth understanding of the underlying factors driving demand for different defense and internal security segments in the Saudi Arabia market and identify the opportunities offered.
  • Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others.
  • Identify the major threats that are driving Saudi Arabia’s defense market providing a clear picture of future opportunities that can be tapped, resulting in revenue expansion.
  • Channel resources by focusing on the ongoing programs that are being undertaken by the government of Saudi Arabia.
  • Make correct business decisions based on an in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country.

We recommend this valuable source of information to anyone involved in:

  • Defense Startups, Original Equipment Manufacturers (OEMs)
  • Defense Planners and Government Bodies
  • Business Development and Market Intelligence
  • Investment Analysts and Portfolio Managers
  • Professional Services – Investment Banks, PE/VC firms
  • M&A/Investment, Management Consultants, and Consulting Firms

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Saudi Arabia Defense Market Report Overview

The Saudi Arabia defense budget is estimated to be $69.1 billion in 2023 and is expected to achieve a CAGR of more than 4% during 2024-2028. Saudi Arabia’s future defense expenditure is driven by national security concerns, regional power dynamics, military modernization, defense partnerships, energy infrastructure protection, and regional instability in the Middle East.

Saudi Arabia Defense Market Outlook, 2023-2028 ($ Billion)

Saudi Arabia Defense Market Outlook, 2023-2028 ($ Billion)

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The Saudi Arabia defense market research report provides the market size forecast and the projected growth rate for the next five years. The report covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

Defense Budget (2023) $69.1 billion
CAGR (2024-2028) >4%
Forecast Period 2024-2028
Historic Period 2019–2023
Key Sectors ·       Naval Vessels and Surface Combatants

·       Missiles and Missile Defense Systems

·       Military Fixed-Wing Aircraft

·       Tactical Communications Systems

·       Military Land Vehicles

·       Military Simulation and Training

·       EOIR

·       Military Radar

·       INS GNSS

Leading Companies ·       Saudi Ground Services Company

·       Saudi Advanced Industries Co

·       Advanced Electronics Co (A Subsidiary of Saudi Arabian Military Industries)

·       Alpha Star Aviation Services

·       Alsalam Aerospace Industries

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Saudi Arabia Defense Market Drivers

The Iranian militarization is one of the key factors driving Saudi Arabia’s defense market. Saudi Arabia has traditionally had an inimical, hostile relationship with Iran. The country is threatened by the Iranian nuclear program and is perpetually targeted by the arsenal of Iranian ballistic missiles. The country is thus expected to invest in a robust defense posture. The continued Iranian support for Houthi rebels also threatens the country.

Saudi Arabia has set itself an ambitious target of developing defense industrial capability to source 50% of its defense requirements internally from domestic suppliers.

Saudi Arabia Military Doctrines and Defense Strategies

Saudi Arabia’s new national defense strategy promotes joint action and response to varying and accelerating threats to protect the interests and security of the country. Saudi Arabia’s military doctrine is mainly focused on the ongoing Iranian defense modernization which could pose a challenge to Saudi Arabian strategic and geopolitical interests. According to the new military strategy, the Saudi Arabian armed forces will modernize their military capabilities by acquiring high–tech and effective weapon systems that provide them with military superiority.

The primary goal of the Saudi armed forces is to protect its homeland and safeguard its territorial boundaries against aggression, tensions, and law and order issues in the region. These incidents have the potential to spill over into Saudi Arabia and become a major security challenge to the country. Based on the country’s geography this primary goal encompasses three sub-goals: protecting the country’s southern frontiers, protecting the northern frontier, and safeguarding the surrounding sea lanes of communication.

Saudi Arabia Defense Market Segmentation by Sectors

The key sectors in the Saudi Arabia defense market are naval vessels and surface combatants, missiles and missile defense systems, military fixed-wing aircraft, tactical communications systems, military land vehicles, military simulation and training, EOIR, military radar, and INS GNSS among others. Military fixed-wing aircraft is the leading sector in the defense market of Saudi Arabia. The government is anticipated to invest heavily in multirole aircraft over 2023–28. The transport aircraft segment is the second largest segment in the Military Fixed-wing.

Saudi Arabia Defense Market Analysis by Sectors, 2023 (%)

Saudi Arabia Defense Market Analysis by Sectors, 2023 (%)

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Saudi Arabia Defense Market - Competitive Landscape

Some of the leading defense companies in Saudi Arabia are Saudi Ground Services Company, Saudi Advanced Industries Co, Advanced Electronics Co (A Subsidiary of Saudi Arabian Military Industries), Alpha Star Aviation Services, and Alsalam Aerospace Industries among others.

Segments Covered in the Report

Saudi Arabia Defense Sectors Outlook (Value, US$ Billion, 2019-2028)

  • Naval Vessels and Surface Combatants
  • Missiles and Missile Defense Systems
  • Military Fixed-Wing Aircraft
  • Tactical Communications Systems
  • Military Land Vehicles
  • Military Simulation and Training
  • EOIR
  • Military Radar

Key Highlights

• Saudi Arabian defense expenditure increased from $55.5 billion in 2019 to $69.1 billion in 2023, reflecting a CAGR of 5.6% during 2019–23. In 2023, the defense budget recorded a 5.7% increase annually over the last year, valued at $69.1 billion. Saudi Arabian defense spending is anticipated to increase from $72.5 billion in 2024 to $86.4 billion in 2028, reflecting a CAGR of 4.5% over 2024–28.

• Saudi Arabian defense spending has historically been sustained by strong fiscal reserves, supported by proceeds from its oil exports, which has allowed the country to accumulate robust emergency fiscal reserves and sustain robust defense spending.

•Saudi Arabia has one of the highest defense expenditures relative to its GDP, and its defense expenditure as a percentage of GDP averaged 7.9% over the historic period 2019–23. Military fixed wing, Missiles and Missile Defense Systems, and Naval vessels and surface combatants feature as the top three largest sectors

The Boeing
Navantia SA
Eurofighter Jagdflugzeug GmbH

Table of Contents

  • 1. Executive Summary
  • 2. Defense Budget Assessment

    • 2.1. Budgeting Process
    • 2.2. Defense Market Size Historical And Forecast
    • 2.3. Drivers Of Defense Expenditure
    • 2.4. Analysis of Defense Expenditure Allocation
    • 2.5. Analysis Of Defense Budget Allocation

  • 3. Military Doctrine And Security Environment

    • 3.1. Military Doctrine And Strategy
    • 3.2. Strategic Alliances and Geopolitics
    • 3.3. Political, Social, and Economic Scenario

  • 4. Market Entry Strategy And Regulations

    • 4.1. Defense Procurement Bodies
    • 4.2. Funding Opportunities
    • 4.3. Trade Associations and Defense Clusters
    • 4.4. Types of Contracts and Opportunities
    • 4.5. Types of Procurement Procedure
    • 4.6. Procurement Policy and Market Regulations
    • 4.7. Market Entry Routes
    • 4.8. Key Challenges
    • 4.9. Major Deals and M&A

  • 5. Market Attractiveness And Emerging Opportunities

    • 5.1. Market Attractiveness, 2023–28
    • 5.2. Top Defense Segments By Value

  • 6. Defense Platform Acquisitions

    • 6.1. Defense Platform Acquisitions By Value
    • 6.2. Eurofighter Typhoon Tranche 3
    • 6.3. C-130J
    • 6.4. Multi-Mission Combat Ships
    • 6.5. CH-47F Chinook
    • 6.6. Multi-Mission Surface Combatant
    • 6.7. Gulfstream G550
    • 6.8. RSNF’s frigate acquisition project
    • 6.9. M109A6 Paladin 155mm

  • 7. Fleet Size
  • 8. Competitive Landscape

    • 8.1. Defense Companies Operating In Saudi Arabia
    • 8.2. Main Defense Companies

  • 9. Appendix
  • 10. About This Report
  • 11. About Us
  • 12. Contact Us

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