Lebanese Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

Lebanese Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024

Summary

Lebanon’s defense and security expenditure is expected to register a CAGR of 5.69% over the forecast period to reach US$3.6 billion in 2024. Lebanon’s military and security expenditure is valued at US$2.7 billion in 2019, registering at CAGR of 5.08% during 2015-2019, and the country is anticipated to record a CAGR of 5.69% over the forecast period to value US$3.6 billion in 2024. As a percentage of GDP, the country’s defense and security expenditure averaged 4.7% over the historic period and is expected to remain the same at an average of 4.7% over the forecast period.

The country faces sectarian violence, threats of militancy, homegrown extremism and unrest at refugee camps. The Syrian civil war and the Israeli-Lebanon conflict have resulted in a large number of refugees’ crossing the border into Lebanon, which has burdened the Lebanese economy, led to sectarian violence, and complicated its internal security. Lebanon is rife with sectarian violence and is also heavily impacted by the problem of drug trafficking, hence there is a need to protect the country against communal violence and narcotics smuggling. The modernization of the police force and developing domestic infrastructure are the primary areas that the country is expected to invest in over the forecast period.

The country’s capital expenditure allocation stood at an average of 33% during the historic period and is expected to decrease to 32.5% over the forecast period. Lebanon is not endowed with oil reserves and lacks the economic ability to invest in expansive defense capabilities, unlike its neighboring Middle Eastern countries.

Missiles, aircraft and armored vehicles cumulatively accounted for 81.4% of imports during 2014-2018, with the US being the biggest supplier with 76.9%. Other significant import partners include Brazil, Canada, France, Italy, Jordan and the UAE. The country’s small defense budget and lack of military manufacturing capability forces the Lebanese armed, naval and air forces to rely on imports. The country is not expected to export any arms to foreign countries, as Lebanese domestic defense is under-developed.

The Lebanese government does not allow foreign direct investment in its military and security sector. The country’s small defense capital expenditure does not equip it with the bargaining power to impose offsets on procurement deals. Participating in government-to-government deals is the preferred route for foreign defense manufacturers and equipment suppliers to enter the Lebanese defense market.

The report “Lebanese Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024” offers detailed analysis of the Lebanese 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 Lebanese defense industry market size and drivers: detailed analysis of the Lebanese 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 Lebanese defense industry

Companies Mentioned: Bell Helicopter Textron, Inc., MBDA

Scope

• Plagued by sectarian violence, the country faces increasing threats of militancy, homegrown extremism, and unrest in refugee camps. In addition, the Syrian civil war has resulted in a large number of refugees’ crossing over to Lebanon to live in camps. As a consequence, these refugee camps have increased the burden on the Lebanese economy by fuelling sectarian violence in the country and complicating its internal security. Lebanon’s military expenditure, which is valued at US$2.7 billion in 2019, registered a CAGR of 5.08% during 2015-2019.
• Moreover, the country is anticipated to record a CAGR of 5.69% over the forecast period to value US$3.6 billion in 2024. As a percentage of GDP, the country’s defense and security expenditure is estimated to average 4.7% and is the same over the historic period and forecast period.

Reasons to buy

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