The Saudi Authority for Industrial Cities and Technology Zones (MODON) has signed a new package of agreements to localize military industries, with total investments exceeding $1.14 billion (SAR 4.26 billion) across areas spanning more than 4 million square meters.
The agreements were finalized during MODON’s participation in the World Defense Show 2026 in Riyadh. The move supports the objectives of the National Industrial Strategy and strengthens integration across the Kingdom’s military manufacturing supply chains, reinforcing Saudi Arabia’s long-term defense industrial ambitions.
The partnerships highlight MODON’s growing role in enabling and advancing the military industry ecosystem, in alignment with Saudi Vision 2030.
The Vision aims to localize more than 50 percent of military spending by 2030 through the development of a fully integrated industrial base that meets the highest international standards, promotes knowledge transfer, and increases local content across strategic sectors.
During the exhibition, MODON signed a strategic agreement with SAMI Defense Systems, involving investments of up to $1.07 billion (SAR 4 billion) across an area exceeding 4 million square meters. The project is set to become one of the largest defense industrial developments within Saudi industrial cities and is expected to serve as a major pillar in boosting domestic defense production and strengthening local supply chains.
In addition, MODON signed an agreement with Beta Defensive in Hail to establish a facility for the production of unmanned aerial vehicles (UAVs). The project will span 1,500 square meters, backed by an investment of $18.93 million (SAR 71 million).
Image credits: SPA | Cropped by GBN
This initiative supports the localization of unmanned systems manufacturing, drives innovation in smart defense technologies, and opens new opportunities in sectors linked to artificial intelligence and advanced control systems.
These partnerships further reinforce MODON’s strategy to empower priority national industries, develop advanced industrial cities capable of attracting high-quality investments, localize cutting-edge technologies, and enhance public-private sector collaboration to build a sustainable and globally competitive industrial economy.
