Saudi Arabia Courts Investment in Military Industries at Paris Defense Show

Saudi Arabia is actively seeking to expand investment in its military industries, using the Eurosatory 2024 defense and security show in Paris as a platform to highlight opportunities and its supportive regulatory environment. The Kingdom's participation aimed to attract capital and foster strategic partnerships that align with its national localization targets.

The Saudi pavilion, organized by the General Authority for Military Industries (GAMI), brought together 10 government and private entities. It underscored Saudi Arabia's commitment to localizing more than 50% of its military spending by 2030. GAMI Governor Ahmad Al-Ohali met with French defense officials and representatives from major global defense companies to discuss strengthening cooperation and exchanging expertise.

Several agreements and memorandums of understanding were signed during the event, part of GAMI's strategy to develop the military sector, enhance supply chains, and enable strategic partnerships. A workshop on developing supply chains emphasized the importance of an attractive investment environment for both local and international investors.

The sector's economic impact is growing, with its contribution to GDP rising from 2.2 billion riyals ($587 million) in 2021 to 6.6 billion riyals ($1.76 billion) in 2024. The localization rate of military spending also increased to nearly 25% in 2024, moving closer to the 2030 goal. GAMI stated that the participation strengthened Saudi Arabia's position as a trusted international partner and expanded its network with global companies.