The Saudi Authority for Industrial Cities and Technology Zones, known as MODON, has signed a package of new agreements to localize military industries, totaling investments exceeding SAR 4.26 billion ($1.135 billion) across areas spanning more than 4 million square meters.

The agreements were signed during MODON’s participation in the World Defense Show 2026 in Riyadh, supporting the objectives of the National Industrial Strategy and strengthening integration across the Kingdom’s military manufacturing supply chains.

The partnerships highlight MODON’s role in enabling the military industry in line with Saudi Vision 2030, which aims to localize more than 50 percent of military spending by 2030. This will be achieved by developing an integrated industrial ecosystem that meets the highest international standards, facilitates knowledge transfer, and strengthens local content.

During the exhibition, a strategic agreement was signed with SAMI Defense Systems, with an investment of up to SAR 4 billion across an area exceeding 4 million square meters. The project will be among the largest defense industrial developments within industrial cities and a key pillar in boosting local content in military industries.

MODON also signed an agreement with Beta Defensive in Hail to produce unmanned aerial vehicles on a 1,500-square-meter site, with an investment of SAR 71 million, equivalent to $18.9 million. This step supports the localization of unmanned systems, enhances innovation in smart defense technologies, and opens new opportunities for industries related to artificial intelligence and advanced control systems.