Saudi Arabia Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2022-27

Pages: 95 Published: May 12, 2022 Report Code: GDDF0759MR

The defense budget of Saudi Arabia stands at $45.6 billion in 2022. The market is expected to grow at a CAGR of more than 2% during 2023-27. Saudi Arabian defense spending has historically been sustained by strong fiscal reserves, supported by proceeds from its oil exports, which has allowed the country to accumulate robust emergency fiscal reserves and sustain robust defense spending. Against this backdrop, Saudi Arabia was hit hard by the volatility in the global oil market. Initially, the country’s revenues deteriorated owing to the general decline in demand for oil. The persistent threat posed by expanding Iranian influence in the Middle East is anticipated to compel the country to progressively increase its defense expenditure. As the country’s economy recovers from COVID and with the increase in oil prices fueled by the uncertainties triggered by the Russian invasion of Ukraine, Saudi Arabia is anticipated to progressively increase its defense expenditure.

The Saudi Arabia defense market research report provides the market size forecast and the projected growth rate for the next five years. The report covers industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants. It also offers insights regarding key factors and government programs that are expected to influence the demand for military platforms over the forecast period.

Saudi Arabia Defense Market Size

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What are the key Saudi Arabia defense market drivers?

Saudi Arabia has traditionally had an inimical, hostile relationship with Iran. The country is threatened by the Iranian nuclear program and is perpetually targeted by the arsenal of Iranian ballistic missiles. The country is thus expected to invest in a robust defense posture. The continued Iranian support for Houthi rebels also threatens the country. Moreover, Saudi Arabia has set itself an ambitious target of developing defense industrial capability so as to source 50 of its defense requirements internally from domestic suppliers.

What are the military doctrines and defense strategies of Saudi Arabia?

Saudi Arabia’s new national defense strategy promotes joint action and response to varying and accelerating threats to protect the interests and security of the country. Saudi Arabia’s military doctrine is mainly focused on the ongoing Iranian defense modernization which could pose a challenge to Saudi Arabian strategic and geopolitical interests. According to the new military strategy, the Saudi Arabian armed forces will modernize their military capabilities by acquiring high-tech and effective weapon systems that provide them with military superiority. To protect Saudi Arabia against internal threats such as extremism and terrorism, the Saudi Arabian Defense Doctrine (SDD) outlines several goals to enhance its military structure and capabilities.

What are the key sectors in the Saudi Arabia defense market?

Missiles and missile defense systems, military infrastructure and logistics, and military land vehicles feature as the top three largest sectors in the market. Other prominent sectors include military rotorcraft, military fixed wing aircraft, unmanned aerial vehicles (UAV), military ammunition, electronic warfare, military radar, naval vessels and surface combatants, electro-optical /infrared (EO/IR) systems, simulation training, tactical communications, and body armor and personal protection. Military radar sector ranks as the fastest growing sector in the Saudi Arabian market, followed by body armor and personal protection and military land vehicles. Body armor and personal protection is mainly anticipated to be propelled by the ongoing Saudi military investments in the hard armored segment. Apart from this, the growth in the body armor and personal protection market is also anticipated to be supported by robust growth in protective clothing.

Saudi Arabia Defense Market Analysis by Sector

Saudi Arabia Defense Market Analysis by Sector

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Which are the key companies in the Saudi Arabia defense market?

Some of the key companies in the Saudi Arabia defense market are Saudi Ground Services Company, Saudi Advanced Industries Co, Advanced Electronics Co, Alpha Star Aviation Services, Alsalam Aerospace Industries, Arab Satellite Communications Organization, BAE Systems Saudi Arabia, Boeing Middle East Ltd, Jubail Chemical Industries Co, and Military Industries Corp.

Market report scope

Market size (2022) $45.6 billion
CAGR (2023-2027) >2%
Forecast Period 2022-2027
Key sectors Missiles and Missile Defense Systems, Military Infrastructure and Logistics, Military Land Vehicles, Military Rotorcraft, Military Fixed-Wing Aircraft, Unmanned Aerial Vehicles (UAV), Military Ammunition, Electronic Warfare, Military Radar, Naval Vessels and Surface Combatants, Electro-Optical /Infrared (EO/IR) Systems, Simulation Training, Tactical Communications, and Body Armor and Personal Protection
Key companies Saudi Ground Services Company, Saudi Advanced Industries Co, Advanced Electronics Co, Alpha Star Aviation Services, Alsalam Aerospace Industries, Arab Satellite Communications Organization, BAE Systems Saudi Arabia, Boeing Middle East Ltd, Jubail Chemical Industries Co, and Military Industries Corp

This report provides:

  • Saudi Arabia defense budget: detailed analysis of Saudi Arabia FY2022 defense budget broken down into market size and market share. This is coupled with an examination of key current and future acquisitions.
  • Regulation: the procurement policy and process is explained. This is coupled with an analysis of Saudi Arabia military doctrine and strategy to provide a comprehensive overview of Saudi Arabia military regulation.
  • Security Environment: political alliances and perceived security threats to Saudi Arabia are examined; there help to explain trends in spending and modernization.
  • Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years.
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Saudi Arabia defense industry.

Reasons to Buy

  • Determine prospective investment areas based on a detailed trend analysis of the Saudi Arabia defense market over the next five years.
  • Gan ain in-depth understandofbout the underlying factors driving demand for different defense and internal security segments in the Saudi Arabia market and identify the opportunities offered.
  • Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others.
  • Identify the major threats that are driving the Saudi Arabia defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion.
  • Channel resources by focusing on the ongoing programs that are being undertaken by the Saudi Arabia government.
  • Make correct business decisions based on an in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also includes information about the key products, alliances, recent contract awarded, and financial analysis, wherever available.

Key Players

The Boeing Co
Lockheed Martin Corp
Saudi Arabian Military Industries (SAMI)

Table of Contents

Table of Contents

Executive Summary

Defense Budget Assessment

Budgeting Process

Defense Market Size Historical and Forecast

Drivers Of Defense Expenditure

Analysis Of Defense Budget Allocation

Key Market Trends and Insight

Military Doctrine And Security Environment

Military Doctrine And Strategy

Political and Strategic Alliances

Geopolitical Social and Economic Scenario

Market Entry Strategy and Regulations

Procurement Policy and Process

Market Regulations and Market Entry Route

Key Challenges

Major M&A, Financing and Partnerships

Market Attractiveness and Emerging Opportunities

Market Attractiveness, 2021-26

Top Defense Segments By Value

Import And Export Market Dynamics

Import Market Dynamics

Export Market Dynamics

Defense Platform Acquisitions

Defense Platform Acquisitions By Value

Terminal High Altitude Area Defense (THAAD)

LAV

6.0

Multi-Mission Surface Combatant

JAIS 4×4 MRAP

AH-64D – Block III Apache

M109A6 Paladin

Wing Loong/Ch-4

Al Jubail-class

Fleet Size

Competitive Landscape

Defense Companies Operating in Saudi Arabia

Main Defense Companies

Appendix

About This Report

About Us

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Frequently Asked Questions

The Saudi Arabia defense budget stands at $45.6 billion in 2022.

 

 

 

 

 

 

The defense market in Saudi Arabia is expected to grow at a CAGR of more than 2% during 2023-27.

The key sectors in the Saudi Arabia defense market are missiles and missile defense systems, military infrastructure and logistics, military land vehicles, military rotorcraft, military fixed wing aircraft, unmanned aerial vehicles (UAV), military ammunition, electronic warfare, military radar, naval vessels and surface combatants, electro-optical /infrared (EO/IR) systems, simulation training, tactical communications, and body armor and personal protection.

Some of the key companies in the Saudi Arabia defense market are Saudi Ground Services Company, Saudi Advanced Industries Co, Advanced Electronics Co, Alpha Star Aviation Services, Alsalam Aerospace Industries, Arab Satellite Communications Organization, BAE Systems Saudi Arabia, Boeing Middle East Ltd, Jubail Chemical Industries Co, and Military Industries Corp.

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