Saudi Arabia eyes large procurement spend as it boosts 2025 defence budget to $78 billion
Saudi Arabia’s purchase of AIM-9X Sidewinder missiles was confirmed in October 2024. (Photo: Raytheon)
The new figure is an increase from US$75.8 billion in 2024 and showcases the country’s focus on its Saudi Vision 2030 to achieve a diversified and sustainable economy, reducing the Kingdom’s dependency on oil.
The Governor of the General Authority for Military Industries (GAMI), Ahmad Al-Ohali, confirmed that Saudi Arabia’s defence budget would increase to US$78 billion, up from a reportedly $75.8 billion in 2024.
Speaking at the 25th Global Defense and Aerospace Industry Strategies Conference in Antalya, Turkey, last week, Al-Ohali said that this budget would constitute roughly 21% of total government spend for the year and 7.1% of its GDP.
Al-Ohali noted 74 opportunities within the supply chains for military industries, according to a comprehensive study of the Saudi market. In addition, 30 priority investment opportunities had been classified – around 80% of total future supply chain spend.
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What has the Kingdom recently spent its money on?
In recent months, Saudi Arabia has confirmed several defence acquisitions. In July 2024, Saudi Arabia secured a deal for four Airbus A330 Multi-Role Tanker Transport (MRTT) aircraft for the Royal Saudi Arabian Air Force. The US approved the sale of AIM-9X Block II Sidewinder missiles for $251 million in October 2024, while a contract with Navantia for three new Avante 2200 corvettes was announced in December 2024.
The country is also interested in bolstering its fighter fleet, with the Kingdom considering the purchase of 54 Dassault’s F4 Rafale jets or Eurofighter Typhoons.
Discussions surrounding Saudi Arabia’s interest in GCAP has also reared its head in the few years, with 2024 seeing increased remarks from members of the multinational initiative regarding their possible involvement.
As first reported by Bloomberg, Saudi Arabia is also reportedly in discussions with Turkey for a $US6 billion deal to finalise an agreement to procure missile systems, alongside warships and tanks. The country has also reportedly already shown interest in Turkey’s indigenous KAAN jets, with local media suggesting 100 of the type could be purchased.
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