The Saudi Arabian Defense Industry to 2017

NEW YORK, March 11, 2013 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

The Saudi Arabian Defense Industry to 2017

http://www.reportlinker.com/p0936509/The-Saudi-Arabian-Defense-Industry-to-2017.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Aerospace_and_Defense

Product Synopsis

This report is the result of ICD Research / Strategic Defence Intelligence's extensive market and company research covering the Saudi Arabian defense industry. It provides detailed analysis of both historic and forecast defense industry values including key growth stimulators, analysis of the leading companies in the industry, and key news..

Introduction and Landscape

Why was the report written?The Saudi Arabian Defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017, offers the reader insights into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the Saudi Arabian defense industry.

What is the current market landscape and what is changing?

During the review period the Saudi Arabian defense budget recorded a CAGR of 7.2%. Expenditure was supported by a modernization program, strained relationship with Iran, high spending power, and a lack of skilled personnel. In 2012 the Saudi Arabian defense budget stood at 7.8% of GDP, and is expected to increase to 8.6% of GDP by 2017. During the review period, Saudi Arabia's capital expenditure allocation stood at 30% of the total defense budget and this is expected to remain at the same level over the forecast period.

What are the key drivers behind recent market changes?The Saudi Arabian government's hopes of strengthening its defense infrastructure in order to emerge as the most powerful nation in the Middle East, have been supported by many years of high oil prices and strong economic growth. The strained relationship with Iran is considered as a key driver for defense spending. In a power struggle for regional influence, Iranian nuclear dreams and terrorist activities keeps the country's defense expenditure soaring. Continuous increases in oil prices is also cited as another key reasons for Saudi Arabia to stand among tope defense spenders in the world.

What makes this report unique and essential to read?

The Saudi Arabian defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017 provides detailed analysis of the current industry size and growth expectations from 2013 to 2017, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.

Key Features and Benefits

The report provides a detailed analysis of the current industry size and growth expectations from 2013 to 2017, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.

Procurement DynamicsThe report includes trend analysis of imports and exports, together with their implications and impact on the Saudi Arabian defense industry.

Industry Structure

The report covers five forces analysis to identify various power centers in the industry and how these are forecast to develop in the future.

Market Entry StrategyThe report allows readers to identify possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including: key contracts, alliances, and strategic initiatives.

Competitive Landscape and Strategic Insights

The report helps the reader to understand the competitive landscape of the defense industry in Saudi Arabia. It provides an overview of key defense companies, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.

Key Market Issues

The lack of industrial opportunities leaves very limited opportunities for the foreign companies and deters them from entering the market. Furthermore, defense contractors often favor direct offsets, as opposed to indirect offsets that are mandated by the country, as they are normally more experienced in, and better equipped to, enter those types of arrangements.

Political underpinnings, bribery, corruption and political affiliations hampers the growth of the Saudi Arabian defense industryBribery and corruption have been prevalent in Saudi defense procurement for many years, largely due to the monopolistic status exercised by the government over the purchase decisions of its armed forces.

3Defense industry still out of reach of FDI

The Saudi Arabian defense sector remains closed to FDI, which limits further growth opportunities. Moreover, in April 2009, the Saudi Arabian General Investment Authority (SAGIA), a body with the sole responsibility of approving foreign investment projects, included the defense sector in its list of sectors still barred to FDI.

Key Highlights

Saudi Arabia

The Saudi Arabian defense industry valued US$50.5 billion in 2012 and is one of the largest defense markets globally. During the review period, the country's defense expenditure grew at a CAGR of 7.2%, and is expected to record a CAGR of 5.4% over the forecast period, to value US$65.9 billion by 2017.

Per capita defense expenditure expected to increase over the forecast periodAlthough the population is forecast to increase between 2013 and 2017, defense expenditure growth is expected to surpass population growth, resulting in an increase per capita in defense expenditure, from an average of US$1615 in the review period. to US$1938 in the forecast period.

Procurement and modernization of fighter aircraft to provide excellent market opportunities

With growing security concerns in the Gulf region, terrorism, and conflict with Iran, it has become imperative for the country to modernize its air defense. According to defense sources, Saudi Arabia signed a deal worth US$29.4 billion in 2011, to procure 84 new F-15S combat fighter aircraft and to upgrade 70 existing F-15S, procured in 1992, to its new standard.

Table of Contents

1.1. What is this Report About?

1.2. Definitions

1.3. Summary Methodology

1.4. SDI Terrorism Index

1.5. About Strategic Defence Intelligence (www.strategicdefenceintelligence.com)

2 Executive Summary

3 Market Attractiveness and Emerging Opportunities

3.1. Defense Market Size Historical and Forecast

3.1.1. Defense expenditure to grow at a CAGR of XX% over the forecast period

3.1.2. Strained relationship with Iran, high spending power and a lack of skilled personnel set to be key drivers of defense expenditure

3.2. Analysis of Defense Budget Allocation

3.2.1. Large spend on training of personnel set to continue

3.2.2. Per capita defense expenditure expected to increase over the forecast period

3.3. Homeland Security Market Size and Forecast

3.3.1. Saudi Arabia emerges as the largest homeland security market in the Middle East

3.3.2. Security threats will be the key driver of homeland security

3.3.3. Saudi Arabia considered at 'moderately affected' of terrorist attack

3.4. Benchmarking with Key Global Markets

3.4.1. Saudi Arabia to become seventh-largest defense spender in the world by 2017

3.4.2. Saudi Arabia allocated XX% of its GDP for defense procurement in 2011, the largest amongst the leading military spenders

3.4.3. Saudi Arabia faces moderate risk of terror attacks

3.5. Market Opportunities: Key Trends and Drivers

3.5.1. Demand for missile defense systems to increase

3.5.2. Demand for helicopters, infantry-fighting vehicles and tanks to increase

3.5.3. Naval infrastructure modernization to drive demand for maritime weaponry

3.5.4. Demand for UAVs for surveillance and monitoring activities will increase

3.5.5. Threats to border security and critical infrastructure to create demand for monitoring and communication systems

3.5.6. Procurement and modernization of fighter aircraft to provide excellent market opportunities

3.5.7. Rotorcraft market is expected to increase during the forecast period

4 Defense Procurement Market Dynamics

4.1. Import Market Dynamics

4.1.1. Defense industry heavily relies on imports from foreign countries

4.1.2. The UK and the US are the key defense suppliers to Saudi Arabia

4.1.3. Aircraft and missiles constitute the majority of Saudi Arabia's defense imports

4.2. Export Market Dynamics

4.2.1. Saudi Arabia's defense export market is negligible

5 Industry Dynamics

5.1. Five Forces Analysis

5.1.1. Bargaining power of supplier: medium

5.1.2. Bargaining power of buyer: medium to high

5.1.3. Barrier to entry: low to medium

5.1.4. Intensity of rivalry: high

5.1.5. Threat of substitution: high

6 Market Entry Strategy

6.1. Market Regulation

6.1.1. Defense industry remains closed to FDI

6.1.2. Government encourages offsets to overcome its shortcomings in the defense industry

6.2. Market Entry Route

6.2.1. Foreign OEMs seek to gain due to underdeveloped indigenous defense capabilities

6.2.2. A large number of foreign corporations enter the defense market by winning contracts

6.3. Key Challenges

6.3.1. Lack of investment opportunities

6.3.2. Political underpinnings, bribery, corruption and political affiliations

7 Competitive Landscape and Strategic Insights

7.1. Competitive Landscape Overview

7.1.1. Saudi Arabian defense sector is dominated by foreign competitors

7.1.2. Domestic participation in the Saudi Arabian defense industry limited to only two companies

7.2. Key Foreign Companies

7.2.1. BAE Systems Plc: overview

7.2.2. BAE Systems Plc: products and services

7.2.3. BAE Systems Plc: recent announcements and strategic initiatives

7.2.4. BAE Systems Plc: alliances

7.2.5. BAE Systems Plc: recent contract wins

7.2.6. BAE Systems Plc: financial analysis

7.2.7. EADS N.V.: overview

7.2.8. EADS N.V.: products and services

7.2.9. EADS N.V.: recent announcements and strategic initiatives

7.2.10. EADS N.V.: alliances

7.2.11. EADS N.V.: recent contracts wins

7.2.12. EADS N.V.: financial analysis

7.2.13. General Dynamics Corporation: overview

7.2.14. General Dynamics Corporation: products and services

7.2.15. General Dynamics Corporation: alliances

7.2.16. General Dynamics Corporation: recent contract wins

7.2.17. Lockheed Martin: overview

7.2.18. Lockheed Martin: products and services

7.2.19. Lockheed Martin: recent announcements and strategic initiatives

7.2.20. Lockheed Martin: alliances

7.2.21. Lockheed Martin: recent contract wins

7.2.22. Science Applications International Corporation: overview

7.2.23. Science Applications International Corporation: products and services

7.2.24. Science Applications International Corporation: alliances

7.2.25. Science Applications International Corporation: recent contract wins

7.2.26. Sikorsky Aircraft Corporation: overview

7.2.27. Sikorsky Aircraft Corporation: products and services

7.2.28. Sikorsky Aircraft Corporation: recent announcements and strategic initiatives

7.2.29. Sikorsky Aircraft Corporation: alliances

7.2.30. Sikorsky Aircraft Corporation: recent contract wins

7.2.31. Thales: overview

7.2.32. Thales: products and services

7.2.33. Thales: recent announcements and strategic initiatives

7.2.34. Thales: alliances

7.2.35. Thales: recent contract wins

7.2.36. Boeing: overview

7.2.37. Boeing: products and services

7.2.38. Boeing: recent announcements and strategic initiatives

7.2.39. Boeing: alliances

7.2.40. Boeing: recent contract wins

7.2.41. Northrop Grumman Corporation: overview

7.2.42. Northrop Grumman Corporation: products and services

7.2.43. Northrop Grumman Corporation: recent announcements and strategic initiatives

7.2.44. Northrop Grumman Corporation: alliances

7.2.45. Northrop Grumman Corporation: recent contract wins

7.2.46. Rolls Royce: overview

7.2.47. Rolls Royce: products and services

7.2.48. Rolls Royce: recent announcements and strategic initiatives

7.2.49. Rolls Royce: alliances

7.2.50. Rolls Royce: recent contract wins

7.3. Key Domestic Companies

7.3.1. Advanced Electronics Company: overview

7.3.2. Advanced Electronics Company: products and services

7.3.3. Advanced Electronics Company: recent announcements and strategic initiatives

7.3.4. Advanced Electronics Company: alliances

7.3.5. Advanced Electronics Company: recent contract wins

7.3.6. Al Salam Aircraft Company: overview

7.3.7. Al Salam Aircraft Company: products and services

7.3.8. Al Salam Aircraft Company: alliances

7.3.9. Al Salam Aircraft Company: recent contract wins

8 Business Environment and Country Risk

8.1. Demographics and Social Statistics

8.1.1. Population - Female

8.1.2. Population - Male

8.2. Economic Performance

8.2.1. Business Confidence index

8.2.2. Construction Output, Current Prices, Local Currency

8.2.3. Construction Output, Current Prices, US Dollars

8.2.4. Current Account Balance as Percentage of GDP

8.2.5. Exports of goods and services, current prices

8.2.6. Foreign Direct Investment

8.2.7. GDP at Purchasing Power Parity

8.2.8. GDP, Constant Prices (Local Currency)

8.2.9. GDP, Constant Prices (US$)

8.2.10. GDP, Current Prices (Local Currency)

8.2.11. GDP, Current Prices (US$)

8.2.12. General Government Final Consumption Expenditure

8.2.13. Gross Fixed Capital Formation, Current Prices

8.2.14. Imports of goods and services

8.2.15. Inflation, average consumer prices

8.2.16. Manufacturing Output, Current Prices (Local Currency Bn)

8.2.17. Manufacturing Output, Current Prices (US$ Billions)

8.2.18. US$- Exchange Rate (Annual Average)

8.2.19. US$- Exchange Rate (EoP)

8.2.20. Wholesale Price Index

8.3. Energy and Utilities

8.3.1. Crude Oil Distillation Capacity

8.3.2. Electricity Installed Capacity

8.3.3. Fossil Fuels Proved natural gas reserves

8.3.4. Fossil Fuels- Proved oil reserves

8.3.5. Natural Gas Consumption

8.3.6. Natural Gas Production

8.3.7. Petroleum, Consumption

8.3.8. Petroleum, Production

8.4. Social and Political Risk

8.4.1. Political Stability Index

8.4.2. Transparency Index

8.5. Technology

8.5.1. Fixed Broadband Internet Subscribers

8.5.2. Gross Domestic Expenditure on Research and Development as % of GDP

8.5.3. Patents Granted

9 Appendix

9.1. Contact Us

9.2. About SDI

9.3. Disclaimer

List of Tables

Table 1: Saudi Arabian Defense Expenditure, 2008-2012

Table 2: Saudi Arabian Defense Expenditure, 2013-2017

Table 3: Saudi Arabian Defense Budget Split Between Capital and Revenue Expenditure (%), 2008-2012

Table 4: Saudi Arabian Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2017

Table 5: Saudi Arabian Per Capita Defense Expenditure (US$), 2008-2012

Table 6: Saudi Arabian Per Capita Defense Expenditure (US$), 2013-2017

Table 7: Benchmarking with Key Markets - 2007-2011 vs. 2012-2016

Table 8: SDI Terrorism Index

Table 9: Saudi Arabia - Offset Guidelines and Agreements

Table 10: Market Entry and Strategic Objectives of Key Foreign Competitors

Table 11: Market Entry by Key Foreign Competitors

Table 12: Competitive Landscape of the Saudi Arabian Defense Industry

Table 13: BAE Systems Plc - Product Focus

Table 14: BAE Systems Plc - Alliances

Table 15: BAE Systems Plc - Recent Contract Wins

Table 16: EADS N.V. - Product Focus

Table 17: EADS N.V. - Alliances

Table 18: EADS N.V. - Recent Contract Wins

Table 19: General Dynamics Corporation - Product Focus

Table 20: General Dynamics Corporation - Alliances

Table 21: General Dynamics Corporation - Recent Contract Wins

Table 22: Lockheed Martin - product focus

Table 23: Lockheed Martin - Alliances

Table 24: Lockheed Martin - Recent Contract Wins

Table 25: Science Applications International Corporation - product focus

Table 26: Science Applications International Corporation - Alliances

Table 27: Science Applications International Corporation - Recent Contract Wins

Table 28: Sikorsky Aircraft Corporation - product focus

Table 29: Sikorsky Aircraft Corporation - Alliances

Table 30: Sikorsky Aircraft Corporation - Recent Contract Wins

Table 31: Thales - product focus

Table 32: Thales - Alliances

Table 33: Thales - Recent Contract Wins

Table 34: Boeing - product focus

Table 35: Boeing - Alliances

Table 36: Boeing - Recent Contract Wins

Table 37: Northrop Grumman Corporation - product focus

Table 38: Northrop Grumman Corporation - Alliances

Table 39: Northrop Grumman Corporation - Recent Contract Wins

Table 40: Rolls Royce - product focus

Table 41: Rolls Royce - Alliances

Table 42: Rolls Royce - Recent Contract Wins

Table 43: Advanced Electronics Company - product focus

Table 44: Advanced Electronics Company - Alliances

Table 45: Advanced Electronics Company - Recent Contract Wins

Table 46: Al Salam Aircraft Company - product focus

Table 47: Al Salam Aircraft Company - Alliances

Table 48: Al Salam Aircraft Company - Recent Contract Wins

List of Figures

Figure 2: Saudi Arabian Defense Expenditure, 2013-2017

Figure 3: Saudi Arabian Defense Budget Split Between Capital and Revenue Expenditure (%), 2008-2012

Figure 4: Saudi Arabian Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2017

Figure 5: Saudi Arabian Per Capita Defense Expenditure (US$), 2008-2012

Figure 6: Saudi Arabian Per Capita Defense Expenditure (US$), 2013-2017

Figure 7: SDI Terrorism Heat Map, 2011

Figure 8: SDI Terrorism Index, 2011

Figure 9: Benchmarking with Key Markets - 2007-2011 vs. 2012-2016

Figure 10: Benchmarking with World's Largest Defense Spenders (US$ Billion), 2011 and 2016

Figure 11: Benchmarking with Large Defense Spenders as % of GDP - 2011

Figure 12: Saudi Arabian Defense Import Trend, 2007-2011 (TIV values)

Figure 13: Saudi Arabian Defense Imports by Country (%), 2007-2011

Figure 14: Saudi Arabian Defense Imports by Weapon Category (%), 2007-2011

Figure 15: Industry Dynamics - Porter's Five Forces Analysis

Figure 16: BAE Systems Plc - Revenue Trend Analysis (US$ Billion), 2007-2011

Figure 17: BAE Systems Plc - Net Profit Trend Analysis (US$ Million), 2007-2011

Figure 18: EADS N.V. - Revenue Trend Analysis (US$ Billion), 2008-2011

Figure 19: EADS N.V. - Operating Profit Trend Analysis (US$ Million), 2008-2011

Figure 20: EADS N.V. - Net Profit Trend Analysis ((US$ Million), 2008-2011

Figure 21: Saudi Arabian Population - Female (In Millions), 2008-2017

Figure 22: Saudi Arabian Population - Male (In Millions), 2008-2017

Figure 23: Saudi Arabian Business Confidence index, 2003-2010

Figure 24: Saudi Arabian Construction Output, Current Prices, Local Currency (In Billions), 2001-2010

Figure 25: Saudi Arabian Construction Output, Current Prices, US Dollars (In Billions), 2001-2010

Figure 26: Saudi Arabian Current Account Balance as Percentage of GDP, 2008-2017

Figure 27: Saudi Arabian Exports of goods and services, current prices (US$ Billion), 2001- 2010

Figure 28: Saudi Arabian Foreign Direct Investment (US$ Billion), 2001-2010

Figure 29: Saudi Arabian GDP at Purchasing Power Parity (US$ Billion), 2006-2015

Figure 30: Saudi Arabian GDP at Constant Prices (Local Currency Billion), 2006-2015

Figure 31: Saudi Arabian GDP at Constant Prices (US$ Billion), 2006-2015

Figure 32: Saudi Arabian GDP at Current Prices (Local Currency Billion), 2006-2015

Figure 33: Saudi Arabian GDP at Current Prices (US$ Billion), 2006-2015

Figure 34: Saudi Arabian General Government Final Consumption Expenditure (US$ Billion), 2001-2010

Figure 35: Saudi Arabian Gross Fixed Capital Formation, Current Prices (US$ Billion), 2001-2010

Figure 36: Saudi Arabian Imports of goods and services (current US$ Billion), 2001-2010

Figure 37: Saudi Arabian Inflation, average consumer prices, 2008-2017

Figure 38: Saudi Arabian Manufacturing Output, Current Prices (Local Currency Billion), 2001-2010

Figure 39: Saudi Arabian Manufacturing Output, Current Prices (US$ Billion), 2001-2010

Figure 40: Saudi Arabian US$- Exchange Rate (Annual Average), 2002-2011

Figure 41: Saudi Arabian US$- Exchange Rate (EoP), 2002-2011

Figure 42: Saudi Arabian Wholesale Price Index, 2000-2009

Figure 43: Saudi Arabian Crude Oil Distillation Capacity (Thousand Barrels Per Cal Day), 2000-2009

Figure 44: Saudi Arabian Electricity Installed Capacity (Million Kilowatts), 2000-2009

Figure 45: Saudi Arabian Fossil Fuels Proved Natural Gas Reserves (Trillion Cubic Feet), 2002-2011

Figure 46: Saudi Arabian Fossil Fuels Proved Oil Reserves (Billion Barrels), 2002-2011

Figure 47: Saudi Arabian Natural Gas Consumption (Million Kilowatts), 2001-2010

Figure 48: Saudi Arabian Natural Gas Production (Billion Cubic Feet), 2001-2010

Figure 49: Saudi Arabian Petroleum Consumption (Thousand Barrels Per Day), 2002-2011

Figure 50: Saudi Arabian Petroleum Production (Thousand Barrels Per Day), 2002-2011

Figure 51: Saudi Arabian Political Stability Index, 2002-2010

Figure 52: Saudi Arabian Transparency Index, 2003-2011

Figure 53: Saudi Arabian Fixed Broadband Internet Subscribers (Thousands), 2001-2010

Figure 54: Gross Domestic Expenditure on Research and Development as % of GDP, 2003-2009

Figure 55: Patents Granted, 2002-2011

Companies Mentioned

To order this report:: The Saudi Arabian Defense Industry to 2017

Contact Clare: [email protected]

US:(339) 368 6001

Intl:+1 339 368 6001

SOURCE Reportlinker