Report

Saudi Arabia unmanned aerial vehicle market is projected to witness a CAGR of 13.81% during the forecast period 2024-2031, growing from USD 0.24 billion in 2023 to USD 0.59 billion in 2031. The market is driven by increasing needs and technology of the defense sector. Defense dominate the market as the country is investing heavily in its capabilities related to regional security concerns. The government is modernizing its armed forces and is investing heavily in Unmanned Aerial Vehicles (UAVs) for surveillance, reconnaissance, and tactical operations. Also, commercial UAVs are being used in agriculture, infrastructure inspection, and logistics. The market is supported by collaborations with international defense contractors and technology advancements. Saudi will see more growth in its UAV market driven by defense and emerging commercial applications.
Defense Sector Dominates Saudi Arabia Unmanned Aerial Vehicle Market Share
In Saudi Arabia, the defense sector is the biggest market for unmanned aerial vehicles as the country is prioritizing its military capabilities, including heavy investment in UAV technology for surveillance, reconnaissance, and tactical operations driven by regional security concerns and modernization. The Saudi government is prioritizing defense-related UAVs to enhance its operational effectiveness and stay ahead of the curve. Saudi's defense investments have led to the acquisition of advanced UAVs like the Chinese Wing Loong-10B (WL-10B) UCAV. The government's push to diversify the economy and promote technology has driven growth in the UAV market. As the market grows, defense-related applications will be at the forefront, driving the innovation and collaboration with international partners.
For instance, in February 2024, Royal Saudi Air Force (RSAF) acquired the Wing Loong-10B (WL-10B) Unmanned Combat Aerial Vehicle (UCAV) at the World Defense Show in Saudi Arabia. The WL-10B allows for extensive aerial surveillance and reconnaissance missions, particularly when armed with guided air-to-ground missiles and bombs. It is powered by a rear-mounted turbojet engine and falls in the high-altitude long-endurance (HALE)-class.
At the World Defense Show (WDS) 2024 in Riyadh, Serb Advanced Industries announced mass-producing small unmanned aerial vehicles for the Saudi military. The company revealed that both the Jaser and the larger Samil UAVs are in production. Serb gained attention recently when Saudi General Authority for Military Industries (GAMI) Governor visited their plant, where photographs of small UAVs being assembled were released.
Growing Concerns Regarding Geopolitical Tensions and Regional Conflicts
Geopolitical pressures and regional conflicts are affecting Saudi Arabia's drone market. As regional threats rise, Saudi is investing in advanced UAV technology to boost its defense capabilities. The demand for UAVs is driven by their strategic importance in surveillance, reconnaissance, and tactical operations. The Saudi government is looking to acquire and develop advanced drone systems to address security challenges and show its military presence. This is driving the market growth with a focus on both local production and international procurement. The market growth reflects the broader regional dynamics in the Middle East where advanced drones are becoming a national defense and regional power tool. As a result, the Saudi drone market will continue to grow as the country looks to strengthen its security and tech edge in the face of ongoing regional uncertainty.
In 2022, China Electronics Technology Group Corp. and Advanced Communications and Electronics Systems Co. signed an agreement to design and build military drones in Saudi Arabia. This joint venture is called Aerial Solutions, which will establish a research and development center for various UAV systems including communications, flight control, camera, radar, and wireless detection systems. Aerial Solutions will focus on developing electric-powered drones, anti-drone solutions, analytics, helicopter products, and radar systems, specializing in security electronic information systems.
Favorable Government Initiatives Boost the Market Growth
Government initiatives are driving growth of the Saudi Arabia unmanned aerial vehicle market. In 2023, the government allocated USD 62.87 Billion (UAD 69 billion) to defense and prioritized the development and export of drone technologies. Supportive regulations and policies are encouraging innovation in UAV technology. Government initiatives used UAVs for various applications in various industries. Recent developments, such as the acquisition of advanced drones like the Chinese Wing Loong-10B and local manufacturing agreements, are proof of the government's commitment. These are speeding up the growth of the drone market and making Saudi Arabia a major player in the global drone industry.
For instance, the Saudi Arabian government's implementation of positive initiatives, such as Vision 2030 that aim to localize 50% of defense spending and diversifying the economy, is encouraging the country's domestic UAV manufacturing industry.
In 2023, The General Authority for Military Industries (GAMI) and the Saudi Arabian Military Industries (SAMI) are some of the significant Saudi organizations that are working on UAV projects in the country. In response to demands from the Saudi Armed Forces, more than nine domestic drone programs have developed in recent years, serving a variety of UAV groups and market categories.
Riyadh to Become the Manufacturing Hub of UAVs
Riyadh is leading the country's UAV market due to the massive investments and initiatives. The region has become a hub for military and commercial UAV developments, including advanced projects and partnerships with international companies. The region's infrastructure and regulatory environment support UAV industry growth, innovation, and operational efficiency. Recent agreements and local manufacturing initiatives are adding to the Central Region's leadership positioning it as the heart of Saudi Arabia's UAV industry growth.
In 2024, in collaboration with the General Authority for Military Industries (GAMI), Intra Defense Technologies has established a drone manufacturing facility in Riyadh. With the ability to produce up to 120 aircraft annually, the facility is a major accomplishment for the country as it seeks to address the rising demand for cutting-edge drone technology.
Future Market Scenario (2024 - 2031F)
Due to significant government investment and technological breakthroughs, the unmanned aerial vehicle sector in Saudi Arabia has a bright future. The industry is expected to grow significantly as long as local production, defense modernization, and strategic collaborations remain top priorities. Saudi Arabia's position as a major player in the global UAV industry will be further cemented by advancements in UAV technology and growing applications in a variety of sectors.
In February 2024, the Ministry of Defense announced the contract with Baykar for AKINCI. According to the contract, some part of the aircraft will be built in Turkey and the rest will be built in Saudi Arabia. Ministry of Defense has confirmed that most of the aircraft will be produced in SAMI's facilities in Saudi Arabia which already has a UAV production line. They are working with Baykar to qualify the production lines and all specialty-type test equipment. Around 300 Saudi employees and engineers will be sent to Turkey to work with Baykar and build the aircraft.
Key Players Landscape and Outlook
Saudi Arabia's unmanned aerial vehicle market features key players, emphasizing on military and surveillance applications, keeping UAV technology at the forefront. Growing defense spending and government programs to build domestic UAV capabilities are projected to fuel market growth. The market outlook is being further improved by partnerships with foreign UAV makers and R&D expenditures. Growth and innovation in the UAV sector are being driven by Saudi Arabia's strategic focus on technical advancement and self-reliance in defense.
In 2024, Saudi's SAL Saudi Logistics Services Co. has signed a MoU with Saudi's Space Age to boost transportation and shipment in the country. The agreement will provide technical solutions and infrastructure for the transfer and localization of the UAV industry. SAL will work on a collaboration framework to combine both companies' capabilities in the field. Both will develop technical solutions and infrastructure to transfer and localize Saudi's UAV industry. SAL's efforts to maximize technical solutions in the logistics services sector can help make the country a global hub for connecting the continents worldwide as per Saudi Vision 2030.