Market Research Report
Future of the Saudi Arabian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024
|Published by||GlobalData||Product code||654972|
|Published||Content info||148 Pages
Delivery time: 1-2 business days
|Future of the Saudi Arabian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024|
|Published: March 15, 2019||Content info: 148 Pages||
Regional disturbances such as the interstate power projection strategies of Iran, coupled with the growing threat from terrorist organizations across the region is compelling Saudi Arabia to become one of the largest defense spenders in the world. In 2015, the country briefly managed to displace Russia and emerge as the third largest defense spender, behind only the US and China. The volatility in oil prices forces the government to carefully balance expenditures within anticipated revenues and keep the deficit at a sustainable level.
Saudi Arabia has the one of the largest defense budgets globally which is expected to grow at a forecast CAGR of 6.45%. The 2019 budget aims to allocate sufficient funds to strategic infrastructure projects, as well as maintain infrastructure and continue to push for economic diversification by enhancing the participation of the private sector. The main factors driving defense expenditure in Saudi Arabia are the ongoing arms race among Middle Eastern nations due to growing turbulence in countries such as Syria, Iraq, and Yemen, combined with the perceived threat from Iran.
Saudi Arabian homeland security expenditure is expected to reach US$38.1 billion in 2024. Homeland security is an area that has gained prominence in Saudi Arabia over the last decade, with expenditure expected to increase from US$30.1 billion in 2020 to US$38.1 billion in 2024 at a CAGR of 6.03%. After the Arab Spring revolution in the Middle Eastern and the North African (MENA) region, and minor protests in Riyadh, the country is expected to increase expenditure to enhance security measures. The spread of the extremist group, IS, in neighboring Syria coupled with the Houthi rebellion in adjoining Yemen, has forced Saudi Arabia to invest in securing its borders.
Saud Arabia is the fifth largest global importer of military hardware. Although, the country plans to develop its local defense sector through SAMI under Vision 2030, it is anticipated that the production will be limited to small arms, maintenance, and support services. The US was the leading supplier of arms to Saudi Arabia, occupying a share of 68% with major contracts including the modernization of the Saudi M1A2 Tank fleet and E-3 AWACS, and the supply of UH-60 helicopters. In May 2017, Saudi Arabia's King Abdulaziz City for Science and Technology (KACST) unveiled its Saqr 1 unmanned aerial vehicle, which has a range of 2,500km and features a satellite communication system. The country's capital expenditure increased from US$8.6 billion in 2015 to US$14.5 billion in 2019, a CAGR of 13.77%, attributed primarily to the drastic erosion in global oil & gas prices worldwide.
The report "Future of the Saudi Arabian 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.
In particular, it provides an in-depth analysis of the following -
Companies mentioned: BAE Systems Plc. , Airbus Group, General Dynamics Corporation, Lockheed Martin, Science Applications International Corporation (SAIC), Sikorsky Aircraft Corporation, Thales SA, Boeing, Northrop Grumman Corporation, Advanced Electronics Company (AEC) and Al Salam Aircraft Company