The defense sectors of the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE), including aviation and aerospace, are undergoing a significant transformation driven by strategic national visions, technological innovation, and increasing regional security demands. Both countries are focused on diversifying their economies, achieving defense self-reliance, and advancing indigenous capabilities through investments in emerging technologies such as artificial intelligence, autonomous systems, cyber security, and space technologies.
The defense sectors of the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE), including aviation and aerospace, are undergoing a significant transformation driven by strategic national visions, technological innovation, and increasing regional security demands. Both countries are focused on diversifying their economies, achieving defense self-reliance, and advancing indigenous capabilities through investments in emerging technologies such as artificial intelligence, autonomous systems, cyber security, and space technologies.Saudi Arabia’s defense spending reached approximately US$ 78 billion in 2025, while the UAE’s defense spending amounted to around US$ 1.77 billion. The UAE aims to increase the share of domestic defense spending from 10% to 30% of total defense expenditure by 2030. Localization of military spending in Saudi Arabia reached 24.89% by the end of 2024, with a target to localize more than 50% of spending on defense equipment and services by 2030, supported by over 299 licensed companies in the military industries sector in 2024. Both Saudi Arabia’s General Authority for Military Industries (GAMI) and the UAE’s Tawazun Council are leading programs focused on upskilling national talent, supporting research and development, and strengthening strategic international partnerships.Challenges such as the need to bridge talent gaps, streamline regulatory frameworks, and develop resilient supply chains capable of supporting sophisticated defense platforms that remain in the market. Cybersecurity and space defense capabilities are emerging priorities in the face of evolving threats. However, the defense outlook for KSA and the UAE is positive, with strategic focus areas including enhanced indigenous innovation, expanded regional and global partnerships, and sustained investments in human capital and infrastructure. These efforts will enhance national security and contribute significantly to economic diversification and regional leadership in defense technologies.
