Future of the Moroccan Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2022

1 Introduction

1.1. What is this Report About?

1.2. Definitions

1.3. Summary Methodology

1.4. About Strategic Defense Intelligence

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 & Strategy

3.1.3. Military Fleet Size

3.1.4. Procurement Programs

3.1.4.1. Ongoing procurement programs

3.1.4.2. Future procurement programs

3.1.5. Social, Political and Economic Environment & Support for Defense Projects

3.1.6. Political & Strategic Alliances

3.2. Defense Market Size Historical and Forecast

3.2.1. Moroccan defense budget is expected to register a CAGR of

2.80% over the forecast period

3.2.2. Counter-terrorism, border security, and the need to modernize outdated defense equipment to drive Morocco's defense expenditure

3.2.3. Defense expenditure as a percentage of GDP is expected to average

2.7% over the forecast period

3.3. Analysis of Defense Budget Allocation

3.3.1. Share of capital expenditure expected to increase over the forecast period

3.3.2. Capital expenditure expected to grow at a CAGR of

2.65% over the forecast period

3.3.3. Per capita defense expenditure expected to increase during the forecast period

3.4. Homeland Security Market Size and Forecast

3.4.1. Moroccan homeland security expenditure expected to increase at a CAGR of

7.88%

3.4.2. Human trafficking, drug smuggling, and cybercrime form the major components of homeland security expenditure

3.4.3. Morocco is at some risk from external and internal threats

3.4.4. Morocco faces some level of threat from foreign terrorist organizations

3.4.5. Morocco has a terrorism index score of

0.9

3.5. Benchmarking with Key Global Markets

3.5.1. Morocco is the fourth largest defense spender in the North African region

3.5.2. Morocco's military expenditure is low when compared to the largest defense spenders but on par in comparison to the other African countries

3.5.3. Morocco allocates a moderate percentage of GDP to defense

3.6. Market Opportunities: Key Trends and Growth Stimulators

3.6.1. Diesel Electric Submarine

3.6.2. Military IT-Networking

3.6.3. Anti-Tank Missiles

4 Defense Procurement Market Dynamics

4.1. Import Market Dynamics

4.1.1. Defense imports to be driven by modernization initiatives over the forecast period

4.1.2. Morocco imports majority of arms from Europe

4.1.3. Aircraft accounted for the majority of defense imports during 2011-2015

4.2. Export Market Dynamics

4.2.1. Morocco does not export arms due to its under-developed domestic arms industry

5 Industry Dynamics

5.1. Five Forces Analysis

5.1.1. Bargaining power of the supplier: medium to high

5.1.2. Bargaining power of the buyer: low to medium

5.1.3. Barrier to entry: medium to high

5.1.4. Intensity of rivalry: medium

5.1.5. Threat of substitution: medium

6 Market Entry Strategy

6.1. Budgeting Process

6.2. Procurement Policy & Process

6.3. Market Regulation

6.3.1. Morocco does not disclose any offset obligations imposed by the country

6.3.2. Foreign direct investment (FDI) is determined on a case-to-case basis

6.4. Market Entry Route

6.4.1. Government-to-government agreements are the preferred market entry route for foreign OEMs

6.4.2. Joint venture and license manufacturing agreements provide an attractive market entry route

6.5. Key Challenges

6.5.1. Corruption and lack of transparency characterize the Moroccan defense industry

6.5.2. Domination of companies from the US and Europe poses a challenge to other foreign firms

7 Competitive Landscape and Strategic Insights

7.1. Competitive Landscape Overview

7.1.1. Foreign suppliers manufacture defense systems overseas and deliver to Morocco

7.2. Key Domestic Companies

7.2.1. Lockheed Martin Corp.: overview

7.2.2. Lockheed Martin Corp.: products and services

7.2.3. Lockheed Martin Corp.: recent announcements and strategic initiatives

7.2.4. Lockheed Martin Corp.: recent contract wins

7.2.5. Raytheon: overview

7.2.6. Raytheon: products and services

7.2.7. Raytheon: recent announcements and strategic initiatives

7.2.8. Raytheon: recent contract wins

7.2.1. Damen Schelde Naval Shipbuilding: Overview

7.2.2. Damen Schelde Naval Shipbuilding: products and services

7.2.3. Damen Schelde Naval Shipbuilding: recent announcements and strategic initiatives

7.2.4. Damen Schelde Naval Shipbuilding: recent contract wins

8 Business Environment and Country Risk

8.1. Economic Performance

8.1.1. GDP Per Capita

8.1.2. GDP, Current Prices

8.1.3. Exports of goods and services (current LCU Bn)

8.1.4. Imports of goods and services (current LCU Bn)

8.1.5. Gross National disposable income (USD Bn)

8.1.6. Local Currency Unit per US Dollars

8.1.7. Market capitalization of listed companies (US$ Bn)

8.1.8. Market capitalization of listed companies (% of GDP)

8.1.9. Government cash surplus/deficit as % of GDP (LCU)

8.1.10. Goods exports as a % of GDP

8.1.11. Goods imports as a % of GDP

8.1.12. Services imports as a % of GDP

8.1.13. Service exports as a % of GDP

8.1.14. Foreign direct investment, net (BoP, current US$ Bn)

8.1.15. Net foreign direct investment as % of GDP

8.1.16. Mining, Manufacturing, Utilities Output LCU Billion

9 Appendix

9.1. About SDI

9.2. Disclaimer

Table 1: Moroccan Army Strength

Table 2: Moroccan Navy Strength

Table 3: Moroccan Air Force Strength

Table 4: Moroccan Ongoing Procurement Programs

Table 5: Moroccan Future Procurement Programs

Table 6: Moroccan Defense Expenditure (MAD billion & US$ billion), 2013-2022

Table 7: Moroccan GDP Growth vs. Defense Expenditure as a Percentage of GDP, 2013-2022

Table 8: Moroccan Defense Budget Split Between Capital and Revenue Expenditure (%),2013-2022

Table 9: Moroccan Defense Capital Expenditure (MAD Billion & US$ Billion), 2013-2022

Table 10: Moroccan Per Capita Defense Expenditure (US$), 2013-2022

Table 11: Moroccan Homeland Security Expenditure (MAD Billion & US$ Billion), 2013-2022

Table 12: Terrorism Index, 2017

Table 13: Benchmarking with Key Markets – 2011-2015 vs. 2016-2020

Table 14: Moroccan Budget Process

Table 15: Lockheed Martin Corp.- Product Focus

Table 16: Lockheed Martin Corp – Contracts

Table 17: Raytheon – product focus

Table 18: Raytheon – contracts

Table 19: Damen Schelde Naval Shipbuilding- Product focus

Table 20:Damen Schelde Naval Shipbuilding – Contracts

Figure 1: Moroccan Defense Expenditure (MAD billion), 2013-2022

Figure 2: Moroccan Defense Expenditure (US$ billion), 2013-2022

Figure 3: Moroccan GDP Growth vs. Defense Expenditure as Percentage of GDP Growth, 2013-2022

Figure 4: Moroccan Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2022

Figure 5: Moroccan Capital Budget Allocation (MAD Billion), 2013-2022

Figure 6: Moroccan Capital Budget Allocation (US$ Billion), 2013-2022

Figure 7: Moroccan Per Capita Defense Expenditure (US$), 2013-2022

Figure 8: Moroccan Homeland Security Expenditure (MAD Billion), 2013-2022

Figure 9: Moroccan Homeland Security Budget (US$ Billion), 2013-2022

Figure 10: Terrorism Heat Map, 2017

Figure 11: Terrorism Index, 2017

Figure 12: Benchmarking with Key Markets – 2013-2017 vs. 2018-2022

Figure 13: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2017 and 2022

Figure 14: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2017

Figure 15: Moroccan Diesel Electric Submarine Market Size (US$ Million), 2017-2020

Figure 16: Moroccan Military-IT Networking Market Size (US$ Million), 2017-2027

Figure 17: Moroccan Anti-Tank Missiles Market Size (US$ Million), 2017-2027

Figure 18: Moroccan Defense Import Trend (US$ million), 2011-2015 (TIV values)

Figure 19: Moroccan Defense Imports by Country (%), 2011-2015

Figure 20: Moroccan Defense Imports by Category (%), 2011-2015

Figure 21: Industry Dynamics Porter's Five Forces Analysis

Figure 22: Moroccan GDP Per Capita at Constant Prices (US$), 2015-2025

Figure 23: Moroccan GDP, Current Prices (US$ Billion), 2015-2025

Figure 24: Moroccan Exports of goods and services (current LCU Bn), 2005-2014

Figure 25: Moroccan Imports of goods and services (current LCU Bn), 2005-2014

Figure 26: Moroccan Gross National disposable income (USD Bn), 2007-2014

Figure 27: Local Currency per USD, 2015-2024

Figure 28: Moroccan Market capitalization of listed companies (US$ Bn), 2005-2012

Figure 29: Moroccan Market capitalization of listed companies (% of GDP), 2005-2012

Figure 30: Moroccan Government cash surplus/deficit as % of GDP (LCU), 2005-2012

Figure 31: Moroccan Goods exports as a % of GDP, 2005-2013

Figure 32: Moroccan Goods imports as a % of GDP, 2005-2013

Figure 33: Moroccan Services imports as a % of GDP, 2005-2013

Figure 34: Moroccan Service exports as a % of GDP, 2005-2013

Figure 35: Moroccan Foreign direct investment, net (BoP, current US$ Bn), 2005-2013

Figure 36: Moroccan Net foreign direct investment as % of GDP, 2005-2013

Figure 37: Moroccan Mining, Manufacturing, Utilities Output (LCU Billion), 2005-2014