This
report is the result of Publisher's extensive market and company research
covering the Qatari defense industry, and 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
Future of the Qatari Defense Industry - Market Attractiveness, Competitive
Landscape, and Forecasts to 2019offers the reader an insight into the market
opportunities and entry strategies adopted by foreign original equipment
manufacturers (OEMs) to gain market share in the Qatari defense industry.
What is the current
market landscape and what is changing?
Being
one of the most attractive markets in the Middle East due to its robust
financial position and aggressive procurement strategies, Qatar is closing its
gap with historical regional strongholds such as Saudi Arabia and UAE. For the
moment, the country's procurements are focused on missile defense systems and
associated radars, a trend that is being witnessed throughout the Middle East.
With a collective expenditure of over US$13 billion, the primary reason for
such expenditure is the need to build up defense against Iranian ballistic
missiles and long-range rockets. Qatari defense expenditure stands at US$3
billion in 2014 and is estimated to increase at a strong CAGR of 16.48% to
reach US$6.4 billion by 2019. Qatari defense expenditure is primarily driven by
participating in peacekeeping initiatives, the upgrade of military equipment
such as Terminal High Altitude Defense Systems(THAADS) and PAC missile defense
systems, multi-mission and attack helicopters, fighter aircraft main battle
tanks and the procurement of advanced technology equipment. The country's
cumulative expenditure on the procurement of advanced military hardware is
projected to be US$5.0 billion over the next five years. With an underdeveloped
domestic defense sector, the country is reliant on foreign manufacturers and
this will provide numerous opportunities for suppliers and OEMs to access the
Qatari market. The country's defense industry is expected to focus its
expenditure on Main Battle Tanks (MBTs), artillery systems, missile defense
systems, radar systems, utility helicopters, training and fighter aircraft, and
night-vision goggles.
What are the key
drivers behind recent market changes?
Arms
race in the Middle East and strong cash reserves
What makes this
report unique and essential to read?
The
Future of the Qatari Defense Industry - Market Attractiveness, Competitive
Landscape, and Forecasts to 2019provides detailed analysis of the current
industry size and growth expectations from 2015 to 2019, 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 detailed analysis of the current industry size and growth expectations from 2015 to 2019, including highlights of key growth stimulators, and also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
- The report includes trend analysis of imports and exports, together with their implications and impact on the Qatari defense industry.
- The report covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
- The 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.
- The report helps the reader to understand the competitive landscape of the defense industry in Qatar. It provides an overview of key defense companies, both domestic and foreign, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Key Market Issues
- With its small territory and narrow population base, Qatar relies primarily 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 made 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 made systems. Furthermore, the Defense Cooperation Agreement signed by both countries in 2013 will allow US military troops to operate at Qatar's Al Udeid Air Base through at least 2024. Qatar also imports from Italy and France and efforts are set to continue in the forecast period so as to reduce dependency from a single nation. However, during the forecast period, the country will largely depend on the US for its military equipment procurements and support services.
- Foreign investors may be deterred from entering the Saudi Arabian defense market because of a scarcity of skilled labor, induced by the lack of industrial capabilities within the country. Moreover, the country's labor market is anticipated to feel the pressure created by neighboring countries such as the UAE, Oman and Saudi Arabia, who are set to launch large development projects and are offering better pay scales to skilled and semi-skilled laborers.
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Key Highlights
One
of the major factors driving Qatari military expenditure is the sheer meteoric
rise in the country's GDP over the past four decades, with growth of 18.8% in
2011 according to the World Bank. While growth is projected to slow in the next
few years, largely due to a slowdown in the global petroleum markets, GDP is
still estimated to grow between 5% and 6%. The volume of the country's cash
reserves can be gauged by the fact that Greece, Italy, Malaysia, Egypt and
other Arab Spring countries have been among the recipients of Qatari aid over
the last few years and this comes at a time when most of the developed world is
reeling from the after effects of the economic slowdown. A country's defense
expenditure is often intrinsically related to its economic health and the
robust growth of Qatar's defense expenditure further highlights this
relationship. Its defense budget more than doubled in 2013 compared to 2011 and
is expected to double again in 2015 to value US$3.5 billion. The majority of
expenditure has been directed towards the missile defense segment with the
purchases of the PATRIOT missile systems and THAAD systems, at US$9.9 billion
and US$6.5 billion respectively. Despite the high value of the contracts, the
increase in expenditure is only a reflection of Qatar's continuing national
growth and a new-found ability to afford a comprehensive purchase of the
systems to fulfill a relevant national security requirement. Additionally, they
don't have to follow the usual defense procurement policy of making incremental
purchases but can eliminate the entire requirement at once. With the country's
cash reserves only expected to get a boost in the coming years thanks to robust
energy, manufacturing and construction sectors, defense expenditure is also
expected to witness a strong increase.
Maritime
Security: The Qatari Ministry of Interior has overall responsibility for public
security and law and order. The country has the world's third largest natural
gas reserve, which is the primary contributor to its economy; therefore it
plans to enhance its maritime security to protect its infrastructure.
Furthermore, the government plans to set up a new port facility outside the
capital city of Doha for its Maritime security providing landing to its naval
vessels and it will also be used for commercial purposes. The Gulf countries
have also enhanced efforts to protect territorial waters due to the tensions
with Iran and threats from Al-Qaeda. Qatar's offshore oil exploration
infrastructure is threatened by various militant groups and therefore it has
increased its surveillance and procured radars systems to detect insurgents and
drug peddlers. The country is expected to create market opportunities for
access control, surveillance, information technology security, and command,
control, communications and intelligence (C3I) markets during the forecast
period.
Qatari
defense imports started to gain momentum from 2009 onwards due to the country's
growing defense expenditure and modernization strategy. Qatar spent robustly on
defense imports during 2008-2012, apart from 2010 due to the economic slowdown,
and is anticipated to grow its imports in the future. Qatari aircraft imports
account for almost 96.8% of its total arms procurements, and involves the
import of utility helicopters and training aircraft, and also plans to procure
advanced fighter jets. Moreover, the government is increasing efforts to
modernize its air defense missile systems and is currently contracting with US
partners in this regard. During 2010-2014, defense imports from the US, the
largest importer in the region, stood at US$86.7 million.
Spanning
Over 80 pages, 20 tables, 43 figures, “Future
of the Qatari Defense Industry - Market Attractiveness, Competitive Landscape
and Forecasts to 2019” report covering the
Market Attractiveness and Emerging Opportunities, Defense Procurement Market
Dynamics, Industry Dynamics, Market Entry Strategy, Competitive Landscape and
Strategic Insights, Business Environment and Country Risk, Appendix. The report
covered 1 company - KADDB.
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more about this report at: http://mrr.cm/ZwG
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