Saudi Arabia Boosts Defense Budget to US$78 Billion, Ranks 5th Globally
This colossal budget not only underscores the Kingdom’s unwavering commitment to military supremacy but also cements its status as the world’s fifth-largest defense spender—and the undisputed leader in the Arab world.
(DEFENCE SECURITY ASIA) – In a bold display of military ambition, the Saudi Arabian government has ramped up its defense spending to a staggering US$78 billion (RM346 billion) this year, surging past last year’s allocation of US$75 billion (RM333 billion).
This colossal budget not only underscores the Kingdom’s unwavering commitment to military supremacy but also cements its status as the world’s fifth-largest defense spender—and the undisputed leader in the Arab world.
According to Ahmad Al-Ohali, Governor of the General Authority for Military Industries (GAMI), the defense allocation represents 21 percent of the government’s total expenditure for the year.
“The government has allocated approximately US$78 billion to the defense sector in the 2025 budget, accounting for 21 percent of total government spending and 7.1 percent of Saudi Arabia’s Gross Domestic Product (GDP),” the statement said.
The statement further noted that Saudi Arabia has recorded an annual defense spending growth of 4.5 percent since 1960.
Traditionally one of the world’s largest arms importers, Saudi Arabia is now focusing heavily on its Vision 2030, launched in 2016.

This strategic plan aims to reduce the Kingdom’s dependence on the oil sector while strengthening other sectors based on domestic production.
Vision 2030 sets a goal of localizing 50 percent of total defense spending by 2030, alongside encouraging defense companies to establish their regional headquarters in Saudi Arabia.
As of the end of 2023, the localization rate of the Kingdom’s military industries had reached 19.35 percent, according to the statement.
Recently, Saudi Arabia reportedly acquired 39 units of the Russian-made Pantsir-S1M air defense system in a deal estimated to be worth US$2.3 billion (RM10.1 billion).
Under the contract, Saudi Arabia is said to have agreed to pay US$2.3 billion to Russia’s state-owned arms exporter, ROSOBORONEXPORT, for the delivery of these air defense systems.
In addition to the 39 Pantsir-S1M units, the deal also includes 10 mobile command posts, hundreds of missiles, transport vehicles, and communication systems related to the air defense platform.

Saudi Arabia is also reportedly in negotiations with Türkiye to finalize a US$6 billion (RM26.3 billion) defense agreement involving the procurement of tanks, warships, and missile systems.
Earlier, Defence Security Asia reported that Saudi Arabia is considering the acquisition of around 100 KAAN fifth-generation fighter jets, currently under development by Türkiye.
Discussions regarding the KAAN fighter jet acquisition were reportedly held during the recent visit of Saudi Royal Air Force Commander, Prince Turki bin Bandar Al Saud, to Türkiye.
In addition to the KAAN jets, Saudi Arabia has also shown interest in acquiring Rafale fighter aircraft developed by France’s Dassault Aviation.
Meanwhile, on July 18 last year, Saudi Arabia announced plans to spend US$3 billion (RM13.5 billion) to procure Akinci MALE (Medium Altitude Long Endurance) unmanned aerial vehicles (drones) from Turkish defense firm Baykar Technology.
