Domestic defense companies turned out in force for the 2026 World Defense Show (WDS), which opened on the 8th (local time) in Riyadh, the capital of Saudi Arabia. Their goal is to pioneer a “K-Defense Silk Road” connecting the Middle East, where an annual defense market of about KRW 100 trillion has formed, with Eastern Europe.

According to the defense industry on the 8th, major Korean defense companies such as Hanwha, Hyundai Rotem, LIG Nex1, and Korea Aerospace Industries (KAI) participated in WDS, the world’s largest defense exhibition. In particular, HD Hyundai Heavy Industries, LIG Nex1, KAI, and EOST jointly set up a combined pavilion. The intention is to present naval, aerial, and land weapons and fire support systems in an integrated manner in one place. Within the Hanwha Group, three defense affiliates—Hanwha Aerospace, Hanwha Ocean, and Hanwha Systems—organized a unified promotional booth. The Defense Acquisition Program Administration (DAPA) and the Korea Defense Industry Association also operated an “Integrated Korea Pavilion” to support small and medium-sized defense enterprises, while the Air Force special aerobatic team “Black Eagles” flew in to join the promotional campaign on site.

The reason Korean defense companies have mobilized en masse for WDS is the steep growth trajectory of the Middle East defense market. According to global market research firm Mordor Intelligence, the defense market in the Middle East and Africa alone is expected to reach around USD 73.4 billion (approximately KRW 96 trillion) this year. The firm projected that this figure will increase by an average of 8.3% annually, expanding to USD 109.3 billion (approximately KRW 143 trillion) by 2031.

In particular, as the United States has recently issued direct threats against Iran and Israel has repeatedly carried out attacks on neighboring countries, instability in the Middle East has prompted countries in the region to competitively increase their defense budgets. Defense spending by countries in the Middle East and North Africa alone accounts for 9.5% of global defense expenditures. KOTRA added, “In 2024, the average rate of increase in defense budgets among Middle Eastern countries is about 15.6%, and they imported 27% of the world’s traded weapons between 2020 and 2024.”

The fact that Middle Eastern countries, which had long been highly dependent on the United States, are now pursuing weapons modernization programs and attempting to diversify their import channels is expected to create opportunities for Korean defense companies. Within the industry, there are projections of contract wins in the trillion-KRW range following this exhibition.

There is also a move to leverage the fact that Middle Eastern countries are demanding the localization of defense technologies and the establishment of local procurement ecosystems in return for weapons imports, in order to secure new export routes. Twelve companies, including HD Hyundai Heavy Industries, LIG Nex1, and STX Engine, which set up an integrated promotional pavilion, signed a “Joint Memorandum of Understanding (MOU) for Establishing a Local Supply Chain in Saudi Arabia” with the Saudi Ministry of Investment.

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