PRZOOM - /newswire/ -
Dubai, UAE, United Arab Emirates, 2010/01/05 - Defense spending in the Middle East has been constantly growing, because all countries want to stay abreast with modern military technology to ensure that their military capabilities are wider and more effective.
A recent study by Frost & Sullivan on 'The Middle East Defense Market' reveals that the defense spending in the Middle East region is expected to surpass $100 billion by 2014.
Analysis from this Frost & Sullivan study finds that the substantial chunk of spending in Middle East is going to come from Saudi Arabia, Iraq, the UAE and Israel. Saudi Arabia's defense expenditure was around $36 billion by the end of 2008. One of the major countries for defense companies to target is Iraq. Iraq can be expected to invest heavily in upgrading its military infrastructure in the first part of the next decade. The spending might be as high as $11 billion by 2014. Although the UAE's spending might be affected by oil prices, it is still expected to invest in major procurements of platforms and ammunitions over the next five years. Israel has the second largest military expenditure in the Middle East. It is still expected to keep spending to stay ahead of its regional adversaries in order to protect its interests. Its defense spending for 2009 was around $13 billion.
Gautam Ganapathy, lead author on the study states-, "The financial muscle of countries like Saudi Arabia, the UAE and Israel is enabling the Middle East to keep spending a huge chunk of their GDP on defense. Although countries in the Middle East have relatively less number of active troops compared to the nations in the west, the ratio of their defense spending to that of their total GDP is highest in the world."
"One of the classic trends that can be seen in the Middle East defense market is the consistent defense spending of the Gulf Co operation Council (GCC) countries over the years. This is resulting in tremendous market opportunity for defense companies worldwide. Internal security issues will also drive the Middle East defense market in the years to come", said Balaji Srimoolanathan, Research Manager, Aerospace and Defense, Frost & Sullivan.
The study also finds that the economic downturn will not affect the defense spending in a marked way, because the spending pattern is more in line with threats and crisis situations rather than economy. Some of the key areas that defense companies must have increased focus on are defense electronics, soldier mechanization and simulation and training.
If you want to know more about this study, then send an email to Tanu Chopra, Corporate Communications, at tanuc[.]frost.com with your full name, company name, title, telephone number, company email address, company website, city, state and country.
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