Cover Image
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
Price
Back to Top
Future of the Qatari Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024
Published: March 19, 2019 Content info: 109 Pages
Description

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.

Scope

The report provides an in-depth analysis of the following -

  • The Qatari defense industry market size and drivers: detailed analysis of the Qatari defense industry during 2020-2024, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country's expenditure and modernization patterns
  • Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country
  • Import and Export Dynamics: analysis of prevalent trends in the country's imports and exports over the last five years
  • Market opportunities: list of the top ten defense investment opportunities over the next 5 years
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Qatari defense industry.

Reasons to buy

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Qatari defense industry market trends for the coming five years
  • The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
  • Profiles of the top domestic and foreign defense manufacturers . This will provide the user with a total competitive landscape of the sector
  • A deep qualitative analysis of the Qatari defense industry covering sections including demand drivers, Key Trends , and latest industry contracts.
Table of Contents
Product Code: GDDF0559MR

Table of Contents

1. Introduction

  • 1.1. What is this Report About?
  • 1.2. Definitions
  • 1.3. Summary Methodology
  • 1.4. About GlobalData

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities

  • 3.1. Current Market Scenario
    • 3.1.1. Primary Threat Perception
    • 3.1.2. Military Doctrine & Strategy
    • 3.1.3. Equipment of Qatari Military
    • 3.1.4. Procurement Programs
    • 3.1.5. Social, Political and Economic Environment & Support for Defense Projects
    • 3.1.6. Political & Strategic Alliances
  • 3.2. Defense Market Size Historical and Forecast
    • 3.2.1. Qatari defense budget to grow at a CAGR of 5.20% during 2020-2024
    • 3.2.2. Military modernization program and strong cash reserves are the main factors driving Qatari defense expenditure
    • 3.2.3. Defense expenditure as a percentage of GDP to increase over the forecast period
  • 3.3. Analysis of Defense Budget Allocation
    • 3.3.1. Procurement of advanced equipment to drive capital expenditure allocation over the forecast period
    • 3.3.2. Capital expenditure is expected to grow at a CAGR of 6.73% over the forecast Period
    • 3.3.3. Qatar's per capita defense expenditure is expected to increase over the forecast period
  • 3.4. Homeland Security Market Size and Forecast
    • 3.4.1. Homeland security (HLS) expenditure in Qatar is mainly driven by Maritime security, the FIFA World Cup 2022, and Cyber-Security
  • 3.5. Benchmarking with Key Global Markets
    • 3.5.1. Qatari defense budget expected to register rapid growth over 2020-2024
    • 3.5.2. Qatari defense expenditure is small compared to the leading spenders
    • 3.5.3. Qatar spent over 3.2% of its GDP on defense in 2019
  • 3.6. Market Opportunities: Key Trends and Drivers
    • 3.6.1. Top 10 Defense Sectors by Value (US$ Million) - Projections over 2019-2024
    • 3.6.2. Naval Vessels and MRO- Corvettes
    • 3.6.3. Airborne C4ISR
    • 3.6.4. Land-Based C4ISR

4. Defense Procurement Market Dynamics

  • 4.1. Import Market Dynamics
    • 4.1.1. Qatari defense industry is import driven
    • 4.1.2. US to continue to be major arms suppliers to Qatar
    • 4.1.3. Aircraft and Missiles to dominate Qatari defense imports
  • 4.2. Export Market Dynamics
    • 4.2.1. Qatar's defense export market is negligible

5. Industry Dynamics

  • 5.1. Five Forces Analysis
    • 5.1.1. Bargaining power of supplier: high
    • 5.1.2. Bargaining power of buyer: medium to high
    • 5.1.3. Barrier to entry: medium
    • 5.1.4. Intensity of rivalry: low to medium
    • 5.1.5. Threat of substitution: medium-high

6. Market Entry Strategy

  • 6.1. Market Regulation
    • 6.1.1. The Qatari Government does not disclose FDI in the defense industry
    • 6.1.2. Qatar has an undisclosed offset policy
  • 6.2. Market Entry Route
    • 6.2.1. Budgeting Process
    • 6.2.2. Procurement Policy and Process
    • 6.2.3. Historical evidence points to government-government deals being the preferred entry route
    • 6.2.4. Cooperative agreement and military collaborations provide an easier way to access the Qatari defense market
  • 6.3. Key Challenges
    • 6.3.1. US domination of the Qatari defense market poses challenge for new entrants
    • 6.3.2. Huge manpower challenge given large military buildup
    • 6.3.3. Lack of industrial capabilities

7. Competitive Landscape and Strategic Insights

  • 7.1. Competitive Landscape Overview
    • 7.1.1. Qatar Market Share Analysis, 2019-2024
  • 7.2. Key Foreign Companies
    • 7.2.1. Lockheed Martin: overview
    • 7.2.2. Lockheed Martin: products
    • 7.2.3. Lockheed Martin: recent announcements and strategic initiatives
    • 7.2.4. Lockheed Martin: recent contract wins
    • 7.2.5. Lockheed Martin: Financial Analysis
    • 7.2.6. Sikorsky: overview
    • 7.2.7. Sikorsky: products and services
    • 7.2.8. Sikorsky: recent announcements and strategic initiatives
    • 7.2.9. Sikorsky: alliances
    • 7.2.10. Sikorsky: recent contract wins
    • 7.2.11. Raytheon: overview
    • 7.2.12. Raytheon: products
    • 7.2.13. Raytheon: recent announcements and strategic initiatives
    • 7.2.14. Raytheon: alliances
    • 7.2.15. Raytheon: recent contract wins
    • 7.2.16. Raytheon: Financial Analysis
    • 7.2.17. Boeing: Overview
    • 7.2.18. Boeing: Products
    • 7.2.19. Boeing: Recent announcements and strategic initiatives
    • 7.2.20. Boeing: Alliances
    • 7.2.21. Boeing: Contracts
    • 7.2.22. BAE Systems Plc.: Overview
    • 7.2.23. BAE Systems Plc.: Products and Services
    • 7.2.24. BAE Systems Plc.: Alliances
    • 7.2.25. Dassault Aviation: Overview
    • 7.2.26. Dassault Aviation: Product Focus
    • 7.2.27. Dassault Aviation: Recent Announcements and Strategic Initiatives
    • 7.2.28. Dassault Aviation: Alliances
    • 7.2.29. Dassault Aviation: Recent Contract Wins
    • 7.2.30. Dassault Aviation: Financial Analysis
    • 7.2.31. Pilatus Aircraft Limited: Overview
    • 7.2.32. Pilatus Aircraft Limited: Products and services
    • 7.2.33. Pilatus Aircraft Limited: Recent announcements and strategic initiatives
    • 7.2.34. Pilatus Aircraft Limited: Alliances
    • 7.2.35. Pilatus Aircraft Limited: Recent contract wins

8. Business Environment and Country Risk

  • 8.1. Economic Performance
    • 8.1.1. GDP per Capita per Capita (US$)
    • 8.1.2. Gross Domestic Product, current US$
    • 8.1.3. Exports of Goods and Services
    • 8.1.4. Imports of Goods and Services (Current LCU)
    • 8.1.5. Gross national disposable income
    • 8.1.6. Local Currency Unit per US$
    • 8.1.7. Market Capitalization of Listed Companies
    • 8.1.8. Market Capitalization of Listed Companies as a % GDP
    • 8.1.9. Government Cash Surplus/Deficit
    • 8.1.10. Goods Exports as a % of GDP
    • 8.1.11. Goods Imports as a % of GDP
    • 8.1.12. Services Imports as a % of GDP
    • 8.1.13. Services Exports as a % of GDP
    • 8.1.14. Net Foreign Direct Investment
    • 8.1.15. Net foreign direct investment as % of GDP
    • 8.1.16. Mining, Manufacturing, Utilities Output

9. Appendix

  • 9.1. About GlobalData
  • 9.2. Disclaimer

List of Tables

  • Table 1: Qatari Army Strength
  • Table 2: Qatari Navy Strength
  • Table 3: Qatari Air Force Strength
  • Table 4: Qatari - Ongoing Development and Procurement Programs
  • Table 5: Qatari - Future Procurement Programs
  • Table 6: Qatari Top Defense Procurement Programs by Value (US$ Million), 2019-2024
  • Table 7: Qatari Defense Cooperation
  • Table 8: Qatari Military Training Exercises
  • Table 9: Qatari Defense Expenditure (QAR Billion & US$ Billion), 2015-2024
  • Table 10: Qatari GDP Growth and Defense Expenditure as Percentage of GDP Growth, 2015-2024
  • Table 11: Qatari Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
  • Table 12: Qatari Defense Capital Expenditure (QAR Billion & US$ Billion), 2015-2024
  • Table 13: Qatari Per Capita Defense Expenditure (US$), 2015-2024
  • Table 14: Benchmarking with Key Markets - 2015-2019 v/s 2020-2024
  • Table 15: Top Qatari Defense Sectors by Value (US$ Million), 2019-2024
  • Table 16: Competitive Landscape of the Qatar Defense Industry
  • Table 17: Top Defense Suppliers in the Qatari Defense Industry by Value (US$ Million), 2019-2024
  • Table 18: Lockheed Martin - Product Focus
  • Table 19: Lockheed Martin- Recent Contract Wins
  • Table 20: Sikorsky Products and Services
  • Table 21: Sikorsky: Alliances
  • Table 22: Sikorsky: Recent Contract Wins
  • Table 23: Raytheon - Product Focus
  • Table 24: Raytheon - Alliances
  • Table 25: Raytheon - Recent Contract Wins
  • Table 26: Boeing - Product Focus
  • Table 27: Boeing - Alliances
  • Table 28: Boeing - Contracts
  • Table 29: BAE Systems Plc. - Products and Services
  • Table 30: BAE Systems Plc. - Alliances
  • Table 31: Dassault Aviation - Product Focus
  • Table 32: Dassault Aviation - Alliances
  • Table 33: Dassault Aviation - Recent Contract Wins
  • Table 34: Pilatus Aircraft Limited - Product Focus
  • Table 35: Pilatus Aircraft Limited - Alliances
  • Table 36: Pilatus Aircraft Limited - Recent Contract Wins

List of Figures

  • Figure 1 Qatari Defense Budget: 2020 and 2024
  • Figure 2 : Qatari Defense Imports/Exports: 2014 and 2018
  • Figure 3 : Qatar's Top Five Prospective Procurements/Developments
  • Figure 4: Qatari National Security Threats
  • Figure 5: Qatar's Partnering Countries for Defense Cooperation and Military Training
  • Figure 6: Qatari Defense Expenditure (QAR Billion), 2015-2024
  • Figure 7: Qatari Defense Expenditure (US$ Billion), 2015-2024
  • Figure 8: Qatar GDP Growth and Defense Expenditure as Percentage of GDP Growth, 2015-2024
  • Figure 9: Qatari Defense Budget Split Between Capital and Revenue Expenditure (%), 2015-2024
  • Figure 10: Qatari Defense Capital Expenditure (QAR Billion), 2015-2024
  • Figure 11: Qatari Defense Capital Expenditure (US$ Billion), 2015-2024
  • Figure 12: Qatari Per-Capita Defense Expenditure (US$ ), 2015-2024
  • Figure 13: Benchmarking with World's Largest and Top Regional Defense Spenders (US$ Billion), 2015-2019 vs. 2020-2024
  • Figure 14: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2019 and 2024
  • Figure 15: : Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2019
  • Figure 16: Naval Vessels and MRO - Corvettes (US$ Million), 2019-2024
  • Figure 17: Airborne C4ISR Market Size (US$ Million), 2019-2024
  • Figure 18: Land-Based C4ISR Market Size (US$ Million), 2019-2024
  • Figure 19: Top Qatari Defense Procurements in Terms of Their Supplier Relationships
  • Figure 20: Qatari Defense Imports (US$ million), 2014-2018
  • Figure 21: Qatari Defense Imports by Country (%), 2014-2018
  • Figure 22: Qatari Defense Imports by Category, 2014-2018
  • Figure 23: Industry Dynamics Porter's Five Forces Analysis
  • Figure 24: Key Challenges in Qatari Defense Market
  • Figure 25: Qatari Market Share Analysis, 2019-2024
  • Figure 26: Lockheed Martin - Revenue Trend Analysis (US$ billion), 2013-2017
  • Figure 27: Lockheed Martin - Operating Profit Trend Analysis (US$ billion), 2013-2017
  • Figure 28: Lockheed Martin - Net Profit Trend Analysis (US$ billion), 2013-2017
  • Figure 29: Raytheon - Revenue Trend Analysis (US$ billion), 2013-2017
  • Figure 30: Raytheon - Operating Profit Trend Analysis (US$ billion), 2013-2017
  • Figure 31: Raytheon - Net Profit Trend Analysis (US$ billion), 2013-2017
  • Figure 32: Dassault Aviation - Revenue Trend Analysis (EUR Billion), 2012-2016
  • Figure 33: Dassault Aviation - Operating Profit Trend Analysis (EUR Million), 2012-2016
  • Figure 34: Dassault Aviation - Net income Trend Analysis (EUR Million), 2012-2016
  • Figure 35: Qatari GDP per capita (US$), 2015-2025
  • Figure 36: Qatari Gross Domestic Product (current US$ Billion), 2015-2025
  • Figure 37: Qatari Exports of goods and services (LCU Billion), 2005-2014
  • Figure 38: Qatari Imports of goods and services (LCU), 2005-2014
  • Figure 39: Qatari Gross national disposable income (US$ billion), 2005-2014
  • Figure 40: Qatari LCU per US$, 2015-2024
  • Figure 41: Qatari market capitalization of listed companies (US$ Billion), 2005-2012
  • Figure 42: Qatari Market Capitalization of listed companies as a % of GDP, 2005-2012
  • Figure 43: Qatari Government Cash Surplus/deficit as % of GDP , 2005-2010
  • Figure 44: Qatari Goods Exports as a % of GDP 2011-2014
  • Figure 45: Qatari Goods Imports as a % of GDP 2011-2014
  • Figure 46: Qatari Services Imports as a % of GDP 2011-2014
  • Figure 47: Qatari Services Exports as a % of GDP, 2011-2014
  • Figure 48: Qatari Net Foreign Direct Investment (current US$ Billion) 2011-2014
  • Figure 49: Qatari Net Foreign Direct Investment as a % of GDP 2011-2014
  • Figure 50: Qatari Mining, Manufacturing, Utilities Output (LCU Billion) 2005-2014
Back to Top