Market Research Report
Future of the Qatari Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024
|Published by||GlobalData||Product code||765985|
|Published||Content info||109 Pages
Delivery time: 1-2 business days
|Future of the Qatari Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024|
|Published: March 19, 2019||Content info: 109 Pages||
The tiny gas-rich nation of Qatar is using its massive wealth to launch a military modernization program with the aim of keeping pace with its neighbors such as the UAE, Bahrain, and Oman. With surging natural gas prices and the country's plan to increase its LNG output, the Qatari government is focusing on increasing its military expenditure, which stands at US$6.5 billion in 2019. The budget is expected to grow at an estimated CAGR of 5.20% over the forecast period, to reach US$8.8 billion in 2024.
The main factors driving procurement in the region are the arms race in the Middle East region, modernization initiatives, and Qatar's diplomatic isolation. In June 2017, a Saudi Arabia led alliance severed political and economic ties with Qatar over its alleged support for terrorism. Since the rift began, Qatar had announced billion-dollar purchases of advanced fighter jets, ammunition, missile defense systems, armored vehicles and naval vessels.
Qatar is expected to remain one of the fastest-growing defense markets in the Middle East over the coming decade due to its underdeveloped domestic defense sector, which forces it to rely on foreign OEMs to enhance its military capabilities. During 2013-2017, Qatar sourced the majority of its defense imports from companies based in the US, which fulfilled 66.7% of the country's arms imports. Aircraft accounted for 30.7% of Qatar's arms imports, followed by missile systems and armored vehicles.
With its small territory and population base, Qatar relies on external cooperation and support for its security. Since 2009, there has been a shift in the country's procurement strategy towards the use of US-QARe weapons, with 87% of defense imports coming from companies based in the US. The acquisition of attack and transport helicopters and other weapons systems, including air defense and missile defense, points to the country's increasing reliance on US-QARe systems.
The country's capital expenditure is anticipated to increase from US$1.9 billion in 2019 to US$3 billion in 2024, growing at a strong CAGR of 6.73% during the forecast period. The Qatari Defense Ministry is anticipated to procure attack and multi-utility helicopters, missile defense systems, fighter aircraft, armored vehicles, main battle tanks, and early warning radar systems. Additionally, Qatar is expected to invest in security systems and platforms as a result of the country hosting the FIFA World Cup 2022. Qatar's ongoing acquisition of Typhoon fighter jets will be used for security and sky patrolling.
The report "Future of the Qatari Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024", provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.
Companies mentioned: Lockheed Martin Corp., Sikorsky Aircraft, Raytheon, Boeing, BAE Systems, Dassault Aviation, Pilatus Aircraft Ltd.
The report provides an in-depth analysis of the following -