South Korean defense companies have launched a coordinated offensive to capture the Middle East arms market, one of the world's largest defense spenders.
With the regional defense market projected to reach at least 160 trillion won ($116 billion) by the early 2030s, Korean firms are entering the "desert bidding war" armed with integrated defense solutions and locally customized products.
According to industry sources on February 9, 39 Korean defense companies participated in the World Defense Show (WDS) 2026, the Middle East's largest defense exhibition that opened the previous day in Riyadh, Saudi Arabia. The Korean contingent set up its largest-ever integrated exhibition hall.
This year's WDS served as a showcase for Korean companies' advanced technologies and localization strategies. Hanwha's three defense subsidiaries highlighted a "K-defense export package" spanning land, sea, air, and space capabilities.
Hanwha Aerospace unveiled its AI-powered Loitering Precision Guided Weapon (L-PGW) for the first time, alongside the K9A1 self-propelled howitzer customized for Saudi Arabia and the "Tigon" wheeled armored vehicle optimized for desert terrain. Hanwha Systems displayed its Multi-purpose Radar (MMR) for low-altitude aerial threat response, while Hanwha Ocean presented a total package including the Jangbogo-III submarine and base construction.
Hyundai Rotem showcased various tanks based on the K2 platform along with the "HR-Sherpa," a multi-purpose unmanned vehicle integrated with counter-drone systems (C-UAS). LIG Nex1 exhibited its multi-layered air defense system including the Cheongung-II and Long-range Surface-to-Air Missile (L-SAM). HD Hyundai Heavy Industries presented the "HDF-6000," a 6,000-ton export frigate optimized for Saudi requirements.
The massive Korean presence reflects the rapidly expanding Middle East defense market amid regional military buildups. According to the Stockholm International Peace Research Institute (SIPRI), Middle East military spending reached $243 billion in 2024, up 15% year-on-year—the world's second-highest growth rate after Europe's 17%.
Market research firm Mordor Intelligence projects the Middle East and Africa defense market will grow from approximately $73.4 billion this year to $109.3 billion by 2031.
Notably, about 68% of strategic assets operated by six major Middle Eastern countries including Saudi Arabia and Egypt are equipment over 30 years old, creating replacement demand estimated at $68.7 billion. Despite fiscal austerity measures, regional governments continue substantial military modernization spending given persistent geopolitical instability.
Local interest has been strong. Saudi Defense Minister Prince Khalid bin Salman visited the LIG Nex1 booth and showed interest in Korean integrated air defense networks. Iraq's Deputy Defense Minister Shawan Mazhar Ali Rawandozi visited the Hyundai Rotem booth to examine the K2 tank.
"K-defense is attracting strong interest in the Middle East because it offers excellent technology and production capability at reasonable prices with fast delivery," an industry official said. "Korea is being recognized as an optimal partner for countries that want Western weapon systems but face price or delivery constraints."
As the Middle East emerges as a key defense market, Korean companies are strengthening strategic partnerships in security and economic sectors. HD Hyundai Heavy Industries signed memoranda of understanding with 12 domestic suppliers to establish local supply chains in Saudi Arabia. LIG Nex1 is discussing maintenance, repair, and overhaul (MRO) cooperation with Saudi Arabian Military Industries (SAMI). Hanwha signed an MOU for joint defense investment and development with EDGE Group, the UAE's state-owned defense company.