Future of the Qatari Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024
Summary
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 -
Reasons to Buy
Summary
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
1. Introduction
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
List of Tables
List of Figures
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Lockheed Martin Corp.
- Sikorsky Aircraft
- Raytheon
- Boeing
- BAE Systems
- Dassault Aviation
- Pilatus Aircraft Ltd
