DUBLIN--(BUSINESS WIRE)--The "Future of the Saudi Arabia Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022" report has been added to Research and Markets' offering.
Saudi Arabia is one of the largest defense spenders in the world, behind the US, China, and Russia, with a military budget valued at US$50.9 Billion in 2017. The country is the largest market in the Middle East due to its robust economic and financial position backed by its oil exports. The rising tension with Iran, aggressive procurement strategies, and modernization programs, along with the need to strengthen its indigenous defense industry, are the main factors boosting the country's military expenditure. Saudi Arabian defense expenditure is expected to increase from a projected US$60.5 Billion in 2018 to reach US$80.8 Billion by 2022 at a CAGR of 7.54%.
Saudi Arabia is making rapid strides in the military sector by becoming the fifth largest defense spender in the world. In 2015, the country briefly managed to displace Russia and emerge as the third largest defense spender, next only to that of the US and China. Saudi Arabia plans to source as much as 50% of its defense equipment from domestic defense companies in future and in May 2017, the Saudi Arabian Public Investment Fund (PIF), decided to create a national defense industry company - Saudi Arabian Military Industries (SAMI).
The country's capital expenditure increased from US$20.4 Billion in 2013 to US$22.4 Billion in 2017, at a CAGR of 2.35%, attributed primarily to the drastic decline in global oil & gas prices worldwide. With Saudi Arabia deriving as much as 86% of its revenues from the export of Brent crude shipments, the continued low oil prices have impacted revenue inflows and caused the country's economy to contract for two consecutive years in 2015 and 2016.
Homeland security is an area that has gained prominence in Saudi Arabia over the last decade, with expenditure expected to increase from US$25.8 Billion in 2017 to US$33.3 Billion in 2022 at a CAGR of 5.26%. With the revolution of Arab Spring in the Middle Eastern and the North African (MENA) region and minor protests in Riyadh, the country is expected witness growing expenditure to enhance security measures.
The US was the leading supplier of arms to Saudi Arabia, occupying a share of 46% with major contracts including the modernization of the Saudi M1A2 Tank fleet and E-3 AWACS, and supply of UH-60 helicopters among others. However, to enhance its domestic defense capabilities, the government introduced an Economic Offset Program, a tool to encourage foreign companies to establish joint ventures (JVs) with Saudi Arabia's domestic organizations.
Key Topics Covered:
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
4. Defense Procurement Market Dynamics
5. Industry Dynamics
6. Market Entry Strategy
7. Competitive Landscape and Strategic Insights
8. Business Environment and Country Risk
- Advanced Electronics Company (AEC)
- Airbus Group
- Al Salam Aircraft Company
- BAE Systems Plc.
- General Dynamics Corporation
- Lockheed Martin
- Northrop Grumman Corporation
- Science Applications International Corporation (SAIC)
- Sikorsky Aircraft Corporation
- Thales SA
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