Saudi Arabia Defence and Security Report 2016 - Business Monitor International - Industry Reports

Saudi Arabia Defence and Security Report 2016

Saudi Arabia Defence and Security Report 2016 - Business Monitor International - Industry Reports
Saudi Arabia Defence and Security Report 2016
Published Jul 09, 2016
49 pages — Published Jul 09, 2016
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Alsalam and UK s BAE Systems announced in July ---- the establishment of a repair, maintenance and overhaul (MRO) facility in Saudi Arabia. In August ----, Alsalam, Boeing (US) and Saudi Aerospace Engineering Industries (SAEI) agreed to set up a helicopter MRO centre in Saudi Arabia. ...The UK defence ministry announced in January ---- that Saudi Arabia had prepared its Panavia Tornado IDS strike aircraft with capability to carry the MBDA Brimstone air-to-surface missile. In January ----, media reported that Riyadh had rejected an offer from the US navy for the manufacture of four armed versions of its Lockheed Martin Littoral Combat Ship (LCS) citing issues with costs and targeted delivery date. According to a statement by Spain s Navantia in February ----, the company is set to receive a USD-.-bn order from Riyadh for five of its Avante corvettes. In February ----, the EU parliament voted in favour of an EU-wide arms embargo on Saudi Arabia due to the disastrous humanitarian situation created by the Saudi-led military intervention in Yemen .

...The H--- drop in global oil prices - and resultant reduction in government revenue - forced Riyadh cut defence spending in ----. Nevertheless, the kingdom remained among the largest defence spenders globally, as it continued to fund numerous modernisation programmes, while also commencing military operations in Yemen and participating in the anti-IS air campaign. ...The budget expansion will be facilitated by the kingdom s high oil production and large fiscal buffers. We expect Riyadh to prioritise ground and air segment procurement in the near-term amid ongoing operations in Yemen and the anti-IS campaign, but envision large-scale naval investments under the RSN s second expansion programme for its Eastern Fleet in coming years (see Domestic Defence Market section). That said, we note that Saudi defence procurement is difficult to predict, as it is often influenced market trends and manufacturers marketing efforts, instead of following regular patterns for acquisition, upgrade and replacement. ...In addition to Riyadh s official defence and security budget, issued by the Saudi Arabian Monetary Agency, substantial amounts of military-related spending is often approved ad-hoc throughout the year.

...< ALACRA META ABSTRACT>BMI View: Reduced government revenues amid lower oil prices will negatively impact Saudi military spending growth in the short term. However, facilitated by high oil production and a strong fiscal position, the kingdom s defence budget will see robust long-term expansion driven by Riyadh s rivalry with Tehran, risks of spillover from instability in neighbouring states and rising threats from Islamist militancy, sectarian violence and social unrest. ...

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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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Business Monitor International - Industry Reports. "Saudi Arabia Defence and Security Report 2016" Jul 09, 2016. Alacra Store. Oct 23, 2016. <>
Business Monitor International - Industry Reports. (2016). Saudi Arabia Defence and Security Report 2016 Jul 09, 2016. New York, NY: Alacra Store. Retrieved Oct 23, 2016 from <>
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