Saudi Arabia Drones Market: AI Integration, Defense Modernization & Growth Outlook

Saudi Arabia's drone sector is gaining real momentum, fuelled by rising e-commerce demand, defense modernization, and Vision 2030-backed mega-projects. From last-mile delivery corridors in Riyadh to UAV surveillance on remote borders, drones are quickly becoming mission-critical infrastructure. According to IMARC Group's latest data, the Saudi Arabia drones market size was valued at USD 314.6 Million in 2025. Looking forward, IMARC Group estimates the market to reach USD 735.7 Million by 2034, exhibiting a CAGR of 9.90% from 2026–2034.

Demand is being fuelled by a combination of government regulatory reforms, private-sector logistics investment, defense procurement upgrades, and expanding use cases in construction, oil and gas, and agriculture. GACA released dedicated commercial drone delivery regulations in mid-2025, and the Middle East drone market is forecast to reach USD 5.54 billion — with Saudi Arabia as its primary growth engine. Across both commercial and military segments, the Kingdom is positioning itself as a regional hub for UAV adoption and, increasingly, domestic production.

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Saudi Arabia Drones Market Growth Drivers:

Rising E-Commerce and Logistics Demand

Rapid growth in online shopping is pushing companies to explore faster, cheaper last-mile delivery options. In cities like Riyadh and Jeddah, where road congestion regularly delays shipments, drones offer a practical workaround. Saudi Arabia's logistics sector is projected to reach SAR 110 billion, with drones playing a growing role in reducing delivery times and operational costs. GACA's formal approval of drone delivery operations, including Matternet's M2 in January 2025 — a Saudi-first — signals strong regulatory intent to accelerate adoption across the logistics chain.

Defense Modernization and Security Technology

Saudi Arabia's defense strategy is increasingly UAV-centric. The Royal Saudi Air Force's acquisition of China's Wing Loong-10B unmanned combat aerial vehicle in 2024 showcased the Kingdom's shift toward AI-enabled surveillance and precision strike capabilities. More than nine domestic drone programs are now active, and Intra Defense Technologies opened a Riyadh facility capable of producing up to 120 aircraft annually. In February 2024, the Ministry of Defense signed a contract with Baykar for the AKINCI drone, with parts manufactured locally — reflecting a clear push toward sovereign defense production and reduced import dependency.

Mega-Project and Industrial Applications

Giga-projects like NEOM, Qiddiya, and the Red Sea development are creating substantial demand for construction monitoring, site inspection, and environmental assessment drones. Saudi Arabia's construction market was valued at USD 70.33 billion in 2024, with drones already embedded in project management workflows. In the oil and gas sector — where pipeline inspections and hazardous-environment monitoring are routine — drone adoption is cutting costs and improving worker safety. In mining, companies are deploying hyperspectral-equipped drones to support copper and gold exploration, demonstrating how far beyond delivery this market has matured.

Saudi Arabia Drones Market Trends:

Regulatory Evolution Enabling Commercial Expansion

Saudi Arabia's General Authority of Civil Aviation has progressively modernized its drone regulatory framework. GACAR Part 107 version 4.0 introduced updated risk-based categories, geo-awareness zones, and Remote ID provisions aligned with international FAA and EASA standards. In mid-2025, GACA officially released commercial drone delivery guidelines — a milestone that opens the door to scalable logistics operations. Drone corridors and sandbox zones for BVLOS testing are being developed in Riyadh, and compliance costs for operators are expected to exceed SAR 250 million annually, reflecting both the sector's scale and the regulatory seriousness Saudi Arabia is bringing to the space.

AI Integration and Autonomous Drone Capabilities

Artificial intelligence is reshaping what drones can actually do. More than 70 percent of commercial drones operating in the Saudi market are expected to incorporate AI for navigation, object detection, and real-time data analysis. Terra Drone Arabia's April 2025 MOU with Saudi Aramco specifically targets AI-driven solutions for energy sector inspection and monitoring. In agriculture, drones now autonomously monitor crop health and optimize irrigation — directly supporting food security goals under Vision 2030. At the 2024 Hajj, pilotless air taxis were trialled to manage crowd movement, demonstrating how autonomous drone applications are moving well beyond industrial niches.

Local Manufacturing and Defense Industrial Growth

Saudi Arabia is building out domestic UAV production capabilities at pace. Serb Advanced Industries announced mass production of the Jaser and Samil UAVs for the Saudi military at World Defense Show 2024. Intra Defense Technologies, working alongside GAMI, operates a facility in Riyadh producing up to 120 aircraft per year. Skyports Drone Services entered the Saudi market through its partnership with iot squared in February 2025, focusing on BVLOS operations across giga-project sites. These developments collectively signal a shift from import-dependent procurement toward a self-sustaining domestic drone ecosystem — a priority for both the Vision 2030 industrial localization agenda and long-term defense supply chain resilience.

Recent News and Developments in Saudi Arabia Drones Market

• April 2025: Terra Drone signed a memorandum of understanding with Saudi Aramco to advance drone, robotics, and AI-driven solutions for the energy sector. Terra Drone Arabia will lead implementation, focusing on inspection, monitoring, and maintenance applications while supporting Saudi Arabia's localization and workforce development commitments under Vision 2030.
• February 2025: Skyports Drone Services announced its entry into the Saudi Arabian market through a partnership with iot squared, targeting beyond visual line of sight (BVLOS) drone services across the Kingdom's major giga-projects. The initiative aims to enhance sustainability and operational efficiency across large-scale infrastructure developments.
• January 2025: Matternet received approval from Saudi Arabia's General Authority of Civil Aviation (GACA) to operate its M2 drone — marking the first time a drone delivery operator has secured such approval in the Kingdom. The milestone follows FAA Type Certification and signals GACA's intent to formally open the market to commercial drone logistics providers.
• February 2024: Saudi Arabia's Ministry of Defense signed a contract with Baykar for the AKINCI unmanned combat aerial vehicle, with a portion of the aircraft to be manufactured domestically in Saudi Arabia — a landmark step in the Kingdom's push for defense industrial localization and sovereign UAV production capability.
• 2024: Intra Defense Technologies, in collaboration with GAMI, established a drone manufacturing facility in Riyadh capable of producing up to 120 aircraft per year. The facility is part of a broader push to develop more than nine domestic UAV programs, strengthening Saudi Arabia's position as a regional center for both commercial and military drone production.

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