Future of the UAE Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Future of the UAE Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Summary

"Future of the UAE 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.

This report offers detailed analysis of the UAE defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

In particular, it provides an in-depth analysis of the following -

The UAE defense industry market size and drivers: detailed analysis of the UAE defense industry during 2019-2023, 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 UAE defense industry.

Scope

UAE defense expenditure stands at US$10.7 billion in 2018, and registered a compound annual growth rate (CAGR) of -5.94% during the historic period.

The country’s strained relationship with Greece, persistent threats from the Kurdish Workers Party (PKK), active participation in peacekeeping missions, and the reduction in foreign dependency for military equipment procurement, drove defense expenditure during the historic period.

With this trend expected to continue, expenditure is anticipated to register a CAGR of 8.36% over the forecast period to value US$15.8 billion in 2023.

As a percentage of GDP, the country’s defense expenditure will average 1.36% over the forecast period, which is marginally declining compared to an average of 1.44% recorded during the historic period.

Reasons to Buy

This report will give the user confidence to make the correct business decisions based on a detailed analysis of the UAE 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 UAE defense industry covering sections including demand drivers, Key Trends , and latest industry contracts.

1. Introduction

1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. About

2. Executive Summary

3. Market Attractiveness and Emerging Opportunities

3.1. Current Market Scenario
3.1.1. Primary Threat Perception
3.1.2. Military Doctrine and Strategy
3.1.3. Military Fleet Size
3.1.4. Procurement Programs
3.1.5. Social, Political and Economic Environment and Support for Defense Projects
3.1.6. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. UAE defense budget to record a CAGR of 6.47% over the forecast period
3.2.2. Military modernization initiatives, territorial dispute with Iran, and peace keeping missions to drive defense expenditure
3.2.3. The defense budget as a percentage of GDP is expected to increase over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Procurement of advanced equipment to drive capital expenditure allocation over the forecast period
3.3.2. Capital expenditure is expected to grow at a CAGR of 7.39% over the forecast period
3.3.3. Per capita defense expenditure expected to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. The UAE’s homeland security budget is expected to increase at a CAGR of 4.66% over the forecast period
3.4.2. Investment in the protection of infrastructure and cyber security are expected to drive the UAE homeland security market
3.4.3. The UAE falls under the “some risk” category on the Terrorism Index
3.4.4. The UAE faces “some risk” by acts of terrorism
3.4.5. The UAE has a terrorism index score of 0.2
3.5. Benchmarking with Key Global Markets
3.5.1. The UAE’s defense budget is expected to register rapid growth over 2019-2023
3.5.2. The UAE’s defense expenditure is relatively small when compared to the leading defense spenders
3.5.3. The UAE spent over 6.1% of its GDP on defense in 2018
3.6. Market Opportunities: Key Trends and Drivers
3.6.1. Top 10 Defense Sectors by Value (US$ Million) - Projections over 2018-2023
3.6.2. Critical Infrastructure Protection - Physical Security
3.6.3. Land-Based C4ISR
3.6.4. Multirole Aircraft

4. Defense Procurement Market Dynamics

4.1. Import Market Dynamics
4.1.1. Limitations within the domestic defense industry to encourage arms imports
4.1.2. The UAE was the world’s fourth-largest arms importer over the historic period
4.1.3. The US continues to be the major arms supplier to the UAE
4.1.4. Missiles and ships dominate UAE defense imports
4.2. Export Market Dynamics
4.2.1. The UAE has minimal defense exports

5. Industry Dynamics

5.1. Five Forces Analysis
5.1.1. Bargaining Power of Supplier: Low to Medium
5.1.2. Bargaining Power of Buyer: Medium to High
5.1.3. Barrier to Entry: Medium to High
5.1.4. Intensity of Rivalry: High
5.1.5. Threat of Substitution: Low to Medium

6. Market Entry Strategy

6.1. Market Regulation
6.1.1. Defense deals are settled through direct negotiation or competitive bidding
6.1.2. Foreign OEMs prefer indirect offsets to meet the obligations associated with defense deals
6.2. Market Entry Route
6.2.1. Budget Process
6.2.2. Procurement Policy and Process
6.2.3. Foreign OEMs use proxy representatives to enter the market
6.2.4. Defense exhibitions hosted by the UAE serve as an entry route for foreign OEMs
6.2.5. Joint ventures and collaborations offer alternative means of entering the market
6.3. Key Challenges
6.3.1. Complying with the UAE’s stringent offset requirements a concern for OEMs
6.3.2. The UAE demands technology transfers in its defense deals

7. Competitive Landscape and Strategic Insights

7.1. Competitive Landscape Overview
7.2. Key Domestic Public Sector Companies
7.2.1. Abu Dhabi Ship Building: Overview
7.2.2. Abu Dhabi Ship Building: Products and Services
7.2.3. Abu Dhabi Ship Building (ADSB): Recent Announcements and Strategic Initiatives
7.2.4. Abu Dhabi Ship Building: Alliances
7.2.5. Abu Dhabi Ship Building: Recent Contract Wins
7.2.6. Abu Dhabi Ship Building: Financial Analysis
7.2.7. Gulf Logistics and Naval Support: Overview
7.2.8. Gulf Logistics and Naval Support: Services
7.2.9. Abu Dhabi Systems Integration: Overview
7.2.10. Abu Dhabi Systems Integration: Products and Services
7.2.11. Abu Dhabi Systems Integration: Recent Announcements and Strategic Initiatives
7.2.12. Abu Dhabi Systems Integration: Alliances
7.3. Key Foreign Companies
7.3.1. Lockheed Martin: Overview
7.3.2. Lockheed Martin: Products
7.3.3. Lockheed Martin: Recent Announcements and Strategic Initiatives
7.3.4. Lockheed Martin: Alliances
7.3.5. Lockheed Martin: Recent Contract Wins
7.3.6. Lockheed Martin: Financial Analysis
7.3.7. BAE Systems Plc.: Overview
7.3.8. BAE Systems Plc.: Products
7.3.9. BAE Systems Plc.: Recent Announcements and Strategic Initiatives
7.3.10. BAE Systems Plc.: Alliances
7.3.11. BAE Systems Plc. - recent contract wins
7.3.12. BAE Systems: Financial Analysis
7.3.13. Raytheon: Overview
7.3.14. Raytheon: Products
7.3.15. Raytheon: Recent Announcements and Strategic Initiatives
7.3.16. Raytheon: Alliances
7.3.17. Raytheon: Recent Contract Wins
7.3.18. Raytheon: Financial Analysis
7.3.19. Rolls-Royce Plc.: Overview
7.3.20. Rolls-Royce Plc.: Products
7.3.21. Rolls-Royce Plc.: Recent Announcements and Strategic Initiatives
7.3.22. Rolls-Royce Plc.: Alliances
7.3.23. Rolls-Royce Plc.: Recent Contract Wins
7.3.24. Rolls-Royce Plc.: Financial Analysis
7.3.25. Northrop Grumman Corporation: Overview
7.3.26. Northrop Grumman Corporation: Products
7.3.27. Northrop Grumman Corporation: Recent Announcements and Strategic initiatives
7.3.28. Northrop Grumman Corporation: Alliances
7.3.29. Northrop Grumman Corp.: Recent Contract Wins
7.3.30. Northrop Grumman: Financial Analysis
7.3.31. Thales: Overview
7.3.32. Thales: Products
7.3.33. Thales: Recent Announcements and Strategic Initiatives
7.3.34. Thales: Alliances
7.3.35. Thales: Recent Contract Wins
7.3.36. Thales: Financial Analysis
7.3.37. The Boeing Company: Overview
7.3.38. The Boeing Company: Products
7.3.39. The Boeing Company: Recent Announcements and Strategic Initiatives
7.3.40. The Boeing Company: Alliances
7.3.41. The Boeing Company: Recent Contract Wins
7.3.42. The Boeing Company: Financial Analysis

8. Business Environment and Country Risk

8.1. Economic Performance
8.1.1. GDP per Capita
8.1.2. Gross Domestic Product
8.1.3. Exports of Goods and Services (LCU Billion)
8.1.4. Imports of Goods and Services (LCU Billion)
8.1.5. LCU per US$ (Period Average)
8.1.6. Market Capitalization of Listed Companies
8.1.7. Market Capitalization of Listed Companies as a Percentage GDP
8.1.8. Foreign Direct Investment, net (BoP, Current US$ Billion)
8.1.9. Net Foreign Direct Investment as a Percentage of GDP
8.1.10. Mining, Manufacturing, Utilities Output (LCU Billion)

9. Appendix

9.1. About
9.2. Disclaimer

List of Tables

Table 1: UAE Army Strength
Table 2: UAE Air Force Strength
Table 3: UAE Navy Strength
Table 4: UAE - Ongoing Development and Procurement Programs
Table 5: UAE - Future Procurement Programs
Table 6: The UAE Top Defense Procurement Programs by Value (US$ Million), 2018-2023
Table 7: UAE Defense Expenditure (AED Billion & US$ Billion), 2014-2023
Table 8: UAE GDP Growth and Defense Expenditure as a Percentage of GDP Growth (%), 2014-2023
Table 9: UAE Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2023
Table 10: UAE Defense Capital Expenditure (AED Billion & US$ Billion), 2014-2023
Table 11: UAE Per Capita Expenditure (US$), 2014-2023
Table 12: UAE Defense Expenditure for Homeland Security (AED Billion & US$ Billion), 2014-2023
Table 13: Terrorism Index, 2017
Table 14: Benchmarking with Key Markets, 2014-2018 vs 2019-2023
Table 15: Top Israeli Defense Sectors by Value (US$ Million), 2018-2023
Table 16: UAE - Offset Guidelines and Agreements
Table 17: UAE Budget Formation Timetable
Table 18: Competitive Landscape of the UAE Defense Industry
Table 19: Top Defense Suppliers in the UAE Defense Industry By Value (US$ Million) 2018-2023
Table 20: Abu Dhabi Ship Building - Products and Services
Table 21: Abu Dhabi Ship Building - Alliances
Table 22: Abu Dhabi Ship Building - Recent Contract Wins
Table 23: Gulf Logistics and Naval Support - Services
Table 24: Abu Dhabi Systems Integration - Products and Services
Table 25: Abu Dhabi Systems Integration - Alliances
Table 26: Lockheed Martin - Products
Table 27: Lockheed Martin - Alliances
Table 28: Lockheed Martin - Recent Contract Wins
Table 29: BAE Systems Plc. - Major Products
Table 30: BAE Systems Plc. - Alliances
Table 31: BAE Systems Plc. - recent contract wins
Table 32: Raytheon - Products
Table 33: Raytheon - Alliances
Table 34: Raytheon Company - Recent Contract Wins
Table 35: Rolls-Royce Plc. - Products
Table 36: Rolls-Royce Plc. - Alliances
Table 37: Rolls-Royce Plc. - Recent Contract Wins
Table 38: Northrop Grumman - Products
Table 39: Northrop Grumman Corporation - Alliances
Table 40: Northrop Grumman Corp. - Recent Contract Wins
Table 41: Thales - Products
Table 42: Thales - Alliances
Table 43: Thales - Recent Contract Wins
Table 44: The Boeing Company - Products
Table 45: The Boeing Company - Alliances
Table 46: The Boeing Company - Recent Contract Wins

List of Figures

Figure 1: UAE Defense Expenditure (in AED Billion), 2014-2023
Figure 2: UAE Defense Expenditure (US$ Billion), 2014-2023
Figure 3: UAE GDP Growth vs Defense Expenditure Growth and Defense Expenditure as a Percentage of GDP (%), 2014-2023
Figure 4: UAE Defense Expenditure Split Between Capital and Revenue Expenditure (%), 2014-2023
Figure 5: UAE Defense Capital Expenditure (AED Billion), 2014-2023
Figure 6: UAE Defense Capital Expenditure (US$ Billion), 2014-2023
Figure 7: UAE Per Capita Expenditure (US$), 2014-2023
Figure 8: UAE Homeland Security Expenditure (AED Billion), 2014-2023
Figure 9: UAE Homeland Security Expenditure (US$ Billion), 2014-2023
Figure 10: Terrorism Heat Map, 2018
Figure 11: Terrorism Index, 2018
Figure 12: Benchmarking with Key Markets, 2014-2018 vs 2019-2023
Figure 13: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2018 and 2023
Figure 14: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2018
Figure 15: Physical Security Market Size (US$ Million), 2018-2023
Figure 16: Land Based C4ISR Market Size (US$ Million), 2018-2023
Figure 17: Multirole Aircraft (US$ Million), 2018-2023
Figure 18: The UAE’s Top Defense Procurements in Terms of Their Supplier Relationships
Figure 19: UAE Defense Imports (US$ million), 2013-2017
Figure 20: UAE Defense Imports by Country (%), 2013-2017
Figure 21: UAE Defense Imports by Category (%), 2013-2017
Figure 22: UAE Defense Exports (US$ million), 2013-2017
Figure 23: UAE Defense Exports by Country (%), 2013-2017
Figure 24: UAE Defense Exports by Category (%), 2013-2017
Figure 25: Industry Dynamics Porter’s Five Forces Analysis
Figure 26: Abu Dhabi Ship Building - Revenue Trend Analysis (AED Million), 2013-2017
Figure 27: Abu Dhabi Ship Building - Operating Profit Trend Analysis (AED Million), 2012-2016
Figure 28: Abu Dhabi Ship Building - Net Profit Trend Analysis (AED Million), 2013-2017
Figure 29: Lockheed Martin - Revenue Trend Analysis (US$ Billion), 2013-2017
Figure 30: Lockheed Martin - Operating Profit Trend Analysis (US$ Billion), 2013-2017
Figure 31: Lockheed Martin - Net Profit Trend Analysis (US$ Billion), 2013-2017
Figure 32: BAE Systems - Revenue Trend Analysis (GBP Billion), 2013-2017
Figure 33: BAE Systems - Operating Profit Trend Analysis (GBP Billion), 2013-2017
Figure 34: BAE Systems - Net Profit Trend Analysis (GBP Billion), 2013-2017
Figure 35: Raytheon - Revenue Trend Analysis (US$ Billion), 2013-2017
Figure 36: Raytheon - Operating Profit Trend Analysis (US$ Billion), 2013-2017
Figure 37: Raytheon - Net Profit Trend Analysis (US$ Billion), 2013-2017
Figure 38: Rolls-Royce Plc. - Revenue Trend Analysis (GBP Billion), 2013-2017
Figure 39: Rolls-Royce Plc. - Operating Profit Trend Analysis (GBP Million), 2013-2017
Figure 40: Rolls-Royce Plc. - Net Profit Trend Analysis (GBP Million), 2013-2017
Figure 41: Northrop Grumman - Revenue Trend Analysis (US$ Billion), 2013-2017
Figure 42: Northrop Grumman - Operating Profit Trend Analysis (US$ Billion), 2013-2017
Figure 43: Northrop Grumman - Net Profit Trend Analysis (US$ Billion), 2013-2017
Figure 44: Thales - Revenue Trend Analysis (EUR Billion), 2013-2017
Figure 45: Thales - Operating Profit Trend Analysis (EUR Million), 2013-2017
Figure 46: Thales - Net Profit Trend Analysis (EUR Million), 2013-2017
Figure 47: Boeing - Revenue Trend Analysis (US$ Billion), 2013-2017
Figure 48: Boeing - Operating Profit Trend Analysis (US$ Billion), 2013-2017
Figure 49: Boeing - Net Profit Trend Analysis (US$ Billion), 2013-2017
Figure 50: UAE GDP Per Capita (US$), 2015-2025
Figure 51: UAE GDP at Current Prices (US$ Billion), 2015-2025
Figure 52: UAE Exports of Goods and Services (LCU Billion), 2005-2014
Figure 53: UAE Imports of Goods and Services (LCU Billion), 2005-2014
Figure 54: LCU per US$ (US$), 2015-2024
Figure 55: UAE Market Capitalization of Listed Companies (US$ Billion), 2005-2012
Figure 56: UAE Market Capitalization of Listed Companies (% of GDP), 2005-2012
Figure 57: UAE Net Foreign Direct Investment (BoP, Current US$ Billion) 2005-2014
Figure 58: UAE Net Foreign Direct Investment as a Percentage of GDP, 2005-2014
Figure 59: UAE Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014