| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 41.85 Billion |
| Market Size (2030) | USD 54.72 Billion |
| CAGR (2025 - 2030) | 5.51 % |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
GCC Defense Market Analysis
The GCC Defense Market size is estimated at USD 41.85 billion in 2025, and is expected to reach USD 54.72 billion by 2030, at a CAGR of 5.51% during the forecast period (2025-2030).
Amid rising geopolitical tensions, GCC (Gulf Cooperation Council) nations are prioritizing military enhancements. These nations are modernizing their air, land, and sea platforms, replacing outdated military equipment with next-gen alternatives and upgrading technology on existing assets. In response to regional geopolitical tensions, the Gulf Cooperation Council (GCC) countries—Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Bahrain, and Oman—are significantly bolstering their defense capabilities. These nations collectively dedicate a considerable share of their budgets to defense, placing a pronounced focus on modernizing military assets across air, land, and sea domains.
Despite facing challenges like budget constraints and a shortage of skilled labor, the GCC's defense market is poised for growth. GCC governments are prioritizing the development of local defense manufacturing, paving the way for potential partnerships with global players and broadening the region's defense product portfolio. Furthermore, technological advancements, particularly in artificial intelligence and autonomous systems, are opening new growth avenues in the defense sector. Integrating these technologies into defense equipment promises enhanced efficiency, cost savings, and improved military operational effectiveness. Substantial investments in modernization and a strategic focus on cultivating local defense industries are propelling the GCC defense market upward. This strategy seeks to bolster military capabilities while simultaneously promoting economic diversification and resilience in the region.
GCC Defense Market Trends
Airforce Segment to Dominate Market Share During the Forecast Period
In the GCC defense market, the Air Force segment is poised for notable expansion, fueled by procurement initiatives aimed at modernizing aging combat aircraft and integrating new unmanned aerial vehicles. Annual defense investments underscore the region's commitment to enhancing military capabilities in response to evolving threats. A case in point: in 2023, defense spending in GCC nations, including Saudi Arabia, Kuwait, Oman, and Bahrain, surged to USD 90.8 billion, marking a 5.2% increase from the USD 86.3 billion allocated in 2022.
With this increasing defense spending, several countries in the GCC are planning to procure new military aircraft to bolster their defense. For instance, in February 2024, Airbus announced that it is in talks with Saudi Arabia to procure A330 Multi-Role Tanker Transport and A400M military transport aircraft.
GCC nations are placing significant orders for new military aircraft, underscoring their commitment to securing the Arabian Gulf. Take Bahrain, for example, which is poised to welcome the latest F-16s in 2024, with additional deliveries lined up for 2025. Highlighting this military upgrade, March 2024 saw Bahrain take delivery of its inaugural F-16 Block 70 Fighting Falcon. This advanced Block 70/72 variant boasts cutting-edge features: state-of-the-art avionics, an active electronically scanned array (AESA) radar, conformal fuel tanks, a revamped cockpit with enhanced safety measures, a robust structural service life of 12,000 hours, next-gen weaponry, and superior engine performance. Notably, its enhanced capability to track and intercept drones bolsters Bahrain's role in international coalitions striving for regional peace and stability. Given these developments, the demand for military aircraft in the region is poised for growth in the coming years.
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Saudi Arabia to Exhibit the Highest Market Share
Saudi Arabia is heavily investing in its defense sector, aiming to bolster military capabilities amidst regional geopolitical tensions. Under its Vision 2030 initiative, the nation is channeling significant budget portions to defense and striving to diversify its economy and boost local manufacturing. As per SIPRI, Saudi military spending hit USD 75.8 billion in 2023, reflecting a 15% rise since 2019 and a 7% uptick from 2022.
With this escalating budget, Saudi Arabia is procuring advanced missile defense systems, ammunition, surveillance tools, and cybersecurity measures to address emerging threats. For example, in February 2024, NTGS, known for the ALAKRAN mobile mortar system, partnered with ERAF Group to locally produce and integrate the ALAKRAN system. The ALAKRAN 120 mm mortar, a lightweight and mobile system, can be mounted on any light utility vehicle with a 1,500 kg payload.
In another move, Saudi Arabia, in February 2024, inked a USD 3.2 billion deal with LIG Nex1 for ten KM-SAM Block II medium-range air defense system batteries. The KM-SAM, or Cheongung in Korea, is a medium-range air defense system from South Korea, developed by the Agency for Defense Development (ADD) with expertise from Russia's Almaz-Antey, famed for the S-300, S-400, and the latest S-500 systems.
Saudi Arabia is actively collaborating with various defense OEMs to enhance its defense prowess. For instance, in February 2024, Leonardo entered an MoU focusing on aerospace and defense collaborations. This agreement emphasizes joint efforts in Combat Air and Cross-Domain Integration, areas where Leonardo is pioneering next-gen technologies and demonstration projects. Potential collaboration domains span uncrewed systems, integrated sensors, digital tech, industrial processes, and workforce development. Such initiatives are poised to fuel the growth of Saudi Arabia's defense market in the coming years.
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GCC Defense Industry Overview
A handful of players command a significant share of the GCC defense market. Key players include Lockheed Martin Corporation, The Boeing Company, Airbus SE, Saudi Arabian Military Industries, and EDGE Group PJSC.
Historically, foreign entities dominated the market, as GCC countries relied heavily on them for arms and ammunition. Yet, in recent years, regional players have steadily carved out a larger slice of the market. Both Saudi Arabia and the UAE are pushing for homegrown defense production, leading to numerous partnerships between foreign defense firms and local Gulf organizations.
For example, SAMI's joint venture with FIGEAC AÉRO Group and Dussur, the Saudi Arabian Industrial Investments Company. This collaboration birthed SAMI FIGEAC AÉRO Manufacturing LLC, which was set to produce aerostructure components and aerospace parts using lightweight aluminum and durable titanium. Such expansions in regional players' product offerings are poised to accelerate in the coming years.
GCC Defense Market Leaders
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Lockheed Martin Corporation
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The Boeing Company
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Airbus SE
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Saudi Arabian Military Industries (SAMI)
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EDGE Group PJSC
- *Disclaimer: Major Players sorted in no particular order
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GCC Defense Market News
- July 2024: The US State Department greenlit a potential USD 2.8 billion contract for system logistics and sustainment, benefiting the Kingdom of Saudi Arabia. The contract encompasses support for Joint Mission Planning Software, cryptographic devices, and maintenance on various US-made aircraft.
- February 2024: Lockheed Martin Corporation signed an agreement with Saudi Arabian companies to manufacture components of its Terminal High Altitude Area Defense (THAAD) missile defense system. This move comes as the United States continues to conduct military operations in the Middle East.
GCC Defense Industry Segmentation
The GCC defense market includes defense spending, procurement, modernization programs, and technology adoption across the six Gulf Cooperation Council member states: Saudi Arabia, United Arab Emirates (UAE), Qatar, Kuwait, Oman, and Bahrain. The market analysis focuses on manpower and equipment modernization, strategic partnerships, and domestic defense manufacturing capabilities.
The GCC defense market is segmented by armed forces, type, and geography. By armed forces, the market is divided into the Army, Navy, and Air Force. By type, it is classified into personnel training and protection, communication systems, vehicles, and weapons and ammunition. The personnel training and protection segment encompasses training simulators and protective equipment for military personnel. The vehicles segment includes land, sea, and air platforms for military mobility. Weapons and ammunition comprise artillery and mortar systems, infantry weapons, missiles and missile defense systems, and various ammunition types. The report provides market sizes and forecasts for the GCC defense market across six GCC countries. The market size for each segment is presented in USD value terms.
| Armed Forces | Army | ||
| Navy | |||
| Air Force | |||
| Type | Personnel Training and Protection | Training and Simulation | |
| Protection Equipment | |||
| Communication Systems | |||
| Vehicles | Land-based Vehicles | ||
| Sea-based Vehicles | |||
| Air-based Vehicles | |||
| Weapons and Ammunition | Artillery and Mortar Systems | ||
| Infantry Weapons | |||
| Missiles and Missile Defense Systems | |||
| Ammunition | |||
| Geography | Saudi Arabia | ||
| United Arab Emirates | |||
| Qatar | |||
| Kuwait | |||
| Bahrain | |||
| Oman | |||
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GCC Defense Market Research Faqs
How big is the GCC Defense Market?
The GCC Defense Market size is expected to reach USD 41.85 billion in 2025 and grow at a CAGR of 5.51% to reach USD 54.72 billion by 2030.
What is the current GCC Defense Market size?
In 2025, the GCC Defense Market size is expected to reach USD 41.85 billion.
Who are the key players in GCC Defense Market?
Lockheed Martin Corporation, The Boeing Company, Airbus SE, Saudi Arabian Military Industries (SAMI) and EDGE Group PJSC are the major companies operating in the GCC Defense Market.
What years does this GCC Defense Market cover, and what was the market size in 2024?
In 2024, the GCC Defense Market size was estimated at USD 39.54 billion. The report covers the GCC Defense Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the GCC Defense Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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GCC Defense Industry Report
Statistics for the 2025 GCC Defense market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. GCC Defense analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
