Market Overview

Saudi Arabian Defense Industry Report 2018 - Market Attractiveness, Competitive Landscape and Forecasts to 2023 -


The "Future
of the Saudi Arabian Defense Industry - Market Attractiveness,
Competitive Landscape and Forecasts to 2023"
report has been
added to's offering.

"Future of the Saudi Arabian Defense Industry - Market Attractiveness,
Competitive Landscape and Forecasts to 2023", 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.

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$56
billion in 2018. 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 Arabia was forced to cut back on defense spending in order to
rationalize public expenditure and during 2015 the country's defense
spending declined by -29.6%. Although the country was expected to cut
back on defense expenditure for 2016 and 2017, there were no cuts in
spending, and during 2016 and 2017 Saudi defense and security
expenditure cumulatively amounted to US$81.6 billion.

On the same time, Homeland security is an area that has gained
prominence in Saudi Arabia over the last decade, with expenditure
expected to increase 8 to US$41.7 billion in 2023 at a CAGR of 8.47%.
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, ISIS, in neighboring Syria coupled with
the Houthi rebellion in adjoining Yemen, has forced Saudi Arabia to
invest in securing its borders. As such, Saudi Arabia is investing in
high technology border fencing along its boundaries with Iraq and Yemen.

As 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) to
cater to its domestic defense requirements. Many major defense
companies, such as BAE Systems, EADS, General Dynamics, Thales, SAIC,
and Northrop Grumman, have entered the Saudi Arabian defense market by
forming alliances and joint ventures with domestic companies.

Key Topics Covered:

1. Introduction

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

9. Appendix

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)
  • Al Salam Aircraft Company

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