Saudi Arabian Defense Industry Future Market Attractiveness Forecasts 2018


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Saudi Arabian Defense Industry Future Market Attractiveness Forecasts 2018

  1. 1. RnR Market Research Offers “Future of the Saudi Arabian Defense Industry – MarketAttractiveness, Competitive Landscape and Forecasts to 2018” Report at US$ 1250Single User License. The report got published in Apr 2013 & Contains 128 Pages.SynopsisThis report is the result of SDI’s extensive market and company research covering the Saudi Arabiandefense industry, and provides detailed analysis of both historic and forecast defense industry valuesincluding key growth stimulators, analysis of the leading companies in the industry, and key news.Introduction and LandscapeWhy was the report written?The Future of the Saudi Arabian Defense Industry – Market Attractiveness, Competitive Landscape andForecasts to 2018 offers the reader an insight into the market opportunities and entry strategies adoptedby foreign original equipment manufacturers (OEMs) to gain market share in the Saudi Arabian defenseindustry.What is the current market landscape and what is changing?Saudi Arabia is estimated to have the fourth largest defense budget in the world, behind the US, China,and Russia. Valued at US$52.9 billion in 2013, the country’s defense expenditure is at the seventhposition among the top 10 military spenders and is expected to grow at a CAGR of 7.92% to reachUS$77.3 billion by 2018. Saudi Arabia’s military expenditure as a percentage of GDP will from its current7.3% to 9.1% by 2018 due to slowing economic growth over the forecast period. An underdevelopeddomestic defense industry coupled with the country’s high spending power presents ample opportunitiesfor foreign OEMs to enter the market through an alliance route.What are the key drivers behind recent market changes?A strained relationship with Iran, high spending power, and the need to develop a skilled military force tobe key factors driving defense expenditure. The Saudi Arabian government’s hopes of strengthening itsdefense infrastructure in order to emerge as the most powerful nation in the Middle East have beensupported by many years of high oil prices and strong economic growth. The rivalry between SaudiArabia and Iran in the Middle East is a regional power struggle for influence, in which both sides haveaimed at steering the course of events, shaping developments, and influencing decisions in the regionaccording to their political preferences and interests. The fact that the Saudi’s average defenseexpenditure as a percentage of GDP during the review period measured a significant 7.9% implies it hasthe purchasing power to procure state of the art defense equipment. In fact the country registered a figureof 7.3% with regards to its defense expenditure as a percentage of GDP, which was the highest amongthe world’s largest military spenders for 2012.Get a Report Copy @ makes this report unique and essential to read?The Future of the Saudi Arabian Defense Industry – Market Attractiveness, Competitive Landscape andForecasts to 2018 provides detailed analysis of the current industry size and growth expectations from2014 to 2018, including highlights of key growth stimulators. It also benchmarks the industry against keyglobal markets and provides a detailed understanding of emerging opportunities in specific areas.Key Features and Benefits- The report provides detailed analysis of the current industry size and growth expectations from 2014 to
  2. 2. 2018, including highlights of key growth stimulators, and also benchmarks the industry against key globalmarkets and provides a detailed understanding of emerging opportunities in specific areas.- The report includes trend analysis of imports and exports, together with their implications and impact onthe Saudi Arabian defense industry.- The report covers five forces analysis to identify various power centers in the industry and how theseare expected to develop in the future.- The report allows readers to identify possible ways to enter the market, together with detaileddescriptions of how existing companies have entered the market, including key contracts, alliances, andstrategic initiatives.- The report helps the reader to understand the competitive landscape of the defense industry in SaudiArabia. It provides an overview of key defense companies, both domestic and foreign, together withinsights such as key alliances, strategic initiatives, and a brief financial analysis.Key Market Issues- Bribery and corruption have been prevalent in Saudi defense procurement for many years, largely dueto the monopolistic status exercised by the government over the purchase decisions of its armed forces.According to Transparency International, Saudi Arabia has insufficient safeguards against corruption inthe defense industry. For example, corruption charges were leveled against a unit of EADS UK withregards to US$3.3 billion communication contract and being investigated by the UK Serious Fraud Officeover bribery allegations in the country.- Foreign investors may be deterred from entering the Saudi Arabian defense market because of scarcityof skilled labor, induced by the lack of industrial capabilities within the country. Nitaqat law makes itmandatory for the companies to have a minimum of 10% local employees and scarcity of skilled laborcomplicates the business environment for foreign companies. Although the government is focusing onmaking amendments, the non-employment rate has increased in recent years resulting in internalconflicts adding to the foreign companies’ woes.Buy a Report Copy @ of Content1 Introduction1.1. What is this Report About?1.2. Definitions1.3. Summary Methodology1.4. SDI Terrorism Index1.5. About Strategic Defence Intelligence2 Executive Summary3 Market Attractiveness and Emerging Opportunities3.1. Defense Market Size Historical and Forecast3.1.1. Defense expenditure expected to grow at a CAGR of 7.92% over the forecast period3.1.2. Strained relationship with Iran, high spending power, and the need to develop a skilled militaryforce to be key factors driving defense expenditure3.1.3. Saudi Arabian defense expenditure as a percentage of GDP expected to increase3.2. Analysis of Defense Budget Allocation3.2.1. Large spending on training of personnel expected to continue3.2.2. Military modernization drives Defense Capital Expenditure3.2.3. Per capita defense expenditure expected to increase over the forecast period3.3. Homeland Security Market Size and Forecast3.3.1. Saudi Arabia is expected to be the second largest homeland security spender in world, after theUS, over the forecast period3.3.2. Internal Security threat and Energy infrastructure protection will be the key drivers of homelandsecurity
  3. 3. 3.3.3. Saudi Arabia considered at moderately affected of terrorist attack3.4. Benchmarking with Key Global Markets3.4.1. Saudi Arabia to be among the fastest-growing defense spenders4 Defense Procurement Market Dynamics4.1. Import Market Dynamics4.1.1. Defense industry heavily relies on imports from foreign countries4.1.2. The UK and the US are the key defense suppliers to Saudi Arabia4.1.3. Aircraft to dominate the Saudi Arabian defense imports4.2. Export Market Dynamics4.2.1. Saudi Arabias defense export market is negligible5 Industry Dynamics5.1. Five Forces Analysis5.1.1. Bargaining power of supplier: medium5.1.2. Bargaining power of buyer: medium to high5.1.3. Barrier to entry: low to medium5.1.4. Intensity of rivalry: high5.1.5. Threat of substitution: high6 Market Entry Strategy6.1. Market Regulation6.1.1. Defense industry remains closed to FDI6.1.2. Offset Program to aid defense industry and economy6.2. Market Entry Route6.2.1. Double digit growth and underdeveloped domestic industry attracts foreign defense players6.2.2. A large number of foreign corporations enter the defense market by winning contracts6.3. Key Challenges6.3.1. Bribery, corruption, and political affiliations6.3.2. Scarcity of skilled Labor and Nitaqat law7 Competitive Landscape and Strategic Insights7.1. Competitive Landscape Overview7.1.1. Saudi Arabian defense sector is dominated by foreign competitors7.1.2. Domestic participation in the Saudi Arabian defense industry limited to only two companies7.2. Key Foreign Companies7.2.1. BAE Systems Plc.: overview7.2.2. BAE Systems Plc.: products and services7.2.3. BAE Systems Plc.: recent announcements and strategic initiatives7.2.4. BAE Systems Plc.: alliances7.2.5. BAE Systems Plc.: recent contract wins7.2.6. BAE Systems Plc.: financial analysis7.2.7. EADS N.V.: overview7.2.8. EADS N.V.: products and services7.2.9. EADS N.V.: recent announcements and strategic initiatives8 Business Environment and Country Risk8.1. Demographics and Social Statistics8.1.1. Population - Rural8.1.2. Population - Urban8.1.3. Population - Number of Households8.2. Economic Performance8.2.1. GDP per Capita8.2.2. Gross Domestic Product8.2.3. Exports of goods and services, US$8.2.4. Imports of goods and services, US$8.2.5. Gross National Disposable Income
  4. 4. 8.2.6. Consumer Price Index8.2.7. Wholesale price Index8.2.8. LCU per US$ (period average)8.2.9. LCU per Euro (period average)8.2.10. Market Capitalization of listed companies (US$ Bn)8.2.11. Market Capitalization of listed companies (as a % of GDP)8.2.12. Goods Exports as a % of GDP8.2.13. Goods Imports as a % of GDP8.2.14. Trade surplus/deficit as a % of GDP8.2.15. Services Imports as a % of GDP8.2.16. Services Exports as a % of GDPFigure 51: Saudi Services Exports as a % of GDP, 2002-2011 1118.2.17. Services Trade surplus/deficit as a % of GDP8.2.18. Net Foreign Direct Investment (current US$ Bn)8.2.19. Net FDI as a % of GDP8.2.20. International reserves, including gold8.3. Energy and Utilities8.3.1. Total Conventional Thermal Electricity Net Generation8.3.2. Nuclear Electricity Net Generation8.3.3. Total Conventional Thermal Electricity Installed Capacity8.3.4. Proved Reserves of Natural Gas8.3.5. Total Petroleum Consumption8.3.6. Crude Oil Proved Reserves8.4. Infrastructure Quality and Availability8.4.1. Rail lines (total route-km)Figure 62: Saudi Arabian Rail lines (total route-km), 2001-2010 1228.4.2. Air Transport, freight (million ton-km)8.5. Technology8.5.1. Research and development expenditure8.5.2. Patents Granted8.6. Telecommunication8.6.1. Telephone Lines8.6.2. Telephone lines Penetration Rate9 Appendix9.1. About SDI9.2. DisclaimerFor more details contact Mr. Priyank Tiwari: / +18883915441Website: