Egypt is increasingly relying on domestic defense manufacturing to curb military spending, expanding local production of armored vehicles, drones and air defense systems while continuing to diversify its foreign arms suppliers and pursue joint-production partnerships with other countries. The strategy comes as the country posted the lowest military spending among Arab states last year, with defense expenditure accounting for 0.61% of gross domestic product, according to figures released by the Stockholm International Peace Research Institute (SIPRI). Military experts told Asharq Al-Awsat that local arms production helps ease pressure on foreign-currency reserves required for imports while ensuring a more secure supply chain. They explained that modern warfare is characterized by the heavy consumption of weapons and ammunition, making uninterrupted access to military supplies a strategic necessity. Egypt’s armed forces have pursued a comprehensive modernization program in recent years, including diversifying sources of weaponry and forging partnerships with major defense-producing countries, according to Egypt’s State Information Service. The government is also pushing to expand reliance on locally manufactured defense products. Minister of State for Military Production Salah Mostafa Gomblat said the current phase focuses on localizing advanced industrial technologies to improve production efficiency and enhance the competitiveness of Egyptian-made products. He added that the strategy includes forging new partnerships with the private sector to reduce import costs and support the national economy. According to SIPRI, Egypt recorded the lowest military spending among Arab countries in 2025 even as global military expenditure rose 2.9% from the previous year to $2.887 trillion. Algeria recorded the highest military-spending among Arab countries, at 8.83% of GDP. Egypt has recently showcased a range of domestically produced defense systems, including armored vehicles, drones and air defense platforms displayed at the EDEX 2025 defense exhibition held in Cairo last December. Among the systems highlighted were the Raad 300, a multiple-caliber guided rocket launcher capable of striking targets at ranges of up to 300 kilometers, and the Jabbar 150 unmanned aerial vehicle, which Egyptian officials describe as possessing advanced offensive capabilities. The unveiling of the Jabbar 150 attracted attention in Israel. In a report published on June 8, Israeli website Natziv.net said Israeli security agencies were monitoring advances in Egyptian military technology and assessing their strategic implications. Major General Nasr Salem, a military analyst, noted that Egypt’s drive to deepen domestic weapons production is intended both to secure military supply lines and reduce the cost of importing arms. “Part of Egypt’s strategy to diversify its sources of armaments is based on localizing military industries,” Salem told Asharq Al-Awsat. He stressed that the prolonged nature of modern conflicts requires armies to maintain a continuous flow of weapons and ammunition, adding that some military estimates suggest the cost of a single day of combat can equal a year’s defense procurement budget for some armed forces. “For that reason, the best option for countries is to manufacture their own weapons,” he said. Salem cautioned, however, that building a domestic defense industry is itself costly and requires access to advanced technologies capable of competing with foreign systems. He added that local production offers another advantage: the ability to design weapons tailored to a country’s operational environment and the needs of its armed forces. Major General Samir Ragab said expanding local defense production also helps reduce pressure on foreign-currency resources. “No country in the world can achieve complete self-sufficiency in armaments,” Ragab told Asharq Al-Awsat, noting that certain categories of advanced weapons will continue to be imported from countries with more sophisticated defense-industrial capabilities. Nevertheless, he said, a strong domestic defense-industrial base enhances the Egyptian military’s capabilities and provides Cairo with greater flexibility to develop weapons systems suited to its own requirements.
