The defense expenditure of the United Arab Emirates (UAE) was valued at $22.5 billion in 2022. The market is expected to grow at a CAGR of more than 4% during the forecast period, owing to the need to modernize the UAE Defense and Security Forces, with specific emphasis on counterinsurgency and anti-terrorism measures. The threat of Iran meddling in Middle Eastern affairs will compel the UAE to maintain its robust defense posture, thus ensuring defense spending.
The UAE defense market 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.
UAE defense market overview
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What are the market dynamics in the UAE defense industry?
Although the UAE wound up its military mission in Yemen in 2019, the country continues to maintain a strong influence and is expected to invest in counterinsurgency and anti-terrorism initiatives.
The UAE’s emphasis on maintaining a strong independent defense posture is reflected in its defense modernization initiatives undertaken over the last decade. The country has consistently ranked as one of the top defense spenders in the region and has amassed a significant number of high-end defense equipment. The country’s defense modernization efforts are mainly centered around C4ISR, anti-ballistic missile systems, fighter aircraft, and armored vehicles, among others.
What are the military doctrines and defense strategies of UAE?
Although the UAE perceives Iran to be its primary strategic regional threat, it has adopted a policy of strategic hedging against Iran. The country has maintained a transactional relationship with Iran, which encompasses diplomatic and commercial ties, all the while forging and strengthening its security alliances with the US and neighboring Saudi Arabia. The key rationale behind this policy has been to avert an all-out confrontation with Iran.
The UAE increasingly perceives its security alliances and strategic partnerships with Western global powers such as France, the UK, and the US to be the cornerstone of its security policy. Over the years, the country has signed different defense agreements with its Western partners and has even allowed them to maintain a considerable military presence within the country. However, driven by the need to maintain strategic autonomy, the country’s reliance on security partnerships with Western countries has been evened out by its increased ambition to train a modern military force. This shift in strategic thinking is demonstrated by the rapid surge in Emirati military interventions globally in countries such as Libya, Afghanistan, Yemen, and Syria, which indicate a more assertive military posture.
What are the key sectors in the UAE defense market?
The key sectors in the defense market in the UAE are missiles & missile defense systems, military infrastructure & logistics, military fixed-wing aircraft, military rotorcraft, military simulation & training, military UGV, and naval vessels & surface combatants.
Military fixed-wing aircraft in the UAE defense market
Military fixed-wing aircraft is the largest sector within the UAE defense market. Airpower has played a key role in the Emirati military interventions over the last few years. The country’s aerial contingent has been involved in fighting battles against the rebels in Yemen and has also been involved in Syria and more recently Libya. Given the increased emphasis on the development of comprehensive expeditionary warfare capabilities, the country is anticipated to boost investments in acquiring new tanker aircraft.
Military infrastructure & logistics in the UAE defense market
Military infrastructure and logistics is the second largest sector in the Emirati defense market. The UAE’s military spending on military infrastructure and logistics is driven by the need to secure the UAE’s strategic interests in the Middle East. The country’s overseas military interventions are expected to spur the country to build new strategic military bases overseas to safeguard its strategic interests.
Missiles & missile defense systems in the UAE defense market
Missiles and missile defense systems are expected to be the third-largest sector in the UAE. The UAE has contracted the US to deliver the Patriot Missile Defense System. The country already operates nine batteries of the Patriot Missile Defense System, alongside two batteries of Theatre High Altitude Area Defense (THAAD) systems in air defense roles. However, the aerial UAV attack on Saudi Arabian oil processing facilities at Abqaiq and Khurais has demonstrated the immense threat of rogue UAV systems to the UAE. As such, the procurement of anti-aircraft systems remains a high priority for the country and, unsurprisingly, anti-air missiles are the largest sub-segment.
Defense market in UAE, by sector
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Which are the key companies in the UAE defense market?
Some of the key companies in the defense market in the UAE include Advanced PyroTechnics (APT), Beacon Red, EPI, ERS, Abu Dhabi Ship Building (ADSB, ADCOM Systems, Jaheziya, ETS, GAL, Halcon, Horizon, Knowledge Point, Lahab, Remaya, and SIGN4L.
Defense market in UAE, by key companies
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Market report scope
|Market size (2022)||$22.5 billion|
|Key sectors||Missiles & Missile Defense Systems, Military Infrastructure & Logistics, Military Fixed-Wing Aircraft, Military Rotorcraft, Military Simulation & Training, Military UGV, and Naval Vessels & Surface Combatants|
|Key companies||Advanced PyroTechnics (APT), Beacon Red, EPI, ERS, Abu Dhabi Ship Building (ADSB, ADCOM Systems, Jaheziya, ETS, GAL, Halcon, Horizon, Knowledge Point, Lahab, Remaya, and SIGN4L|
It provides an in-depth analysis of the following –
- UAE defense budget: detailed analysis of UAE 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 the process is explained. This is coupled with an analysis of UAE’s military doctrine and strategy to provide a comprehensive overview of UAE’s military regulation.
- Security environment: political alliances and perceived security threats to UAE 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 UAE defense industry.
Reasons to Buy
- Determine prospective investment areas based on a detailed trend analysis of the UAE defense market over the next five years
- Gain an in-depth understanding of the underlying factors driving demand for different defense and internal security segments in the UAE 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 UAE 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 UAE government
- Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also include information about the key products, alliances, recent contracts awarded, and financial analysis, wherever available.
Table of Contents
Table of Contents
Defense budget assessment
Defense market size historical and forecast
Drivers of defense expenditure
Analysis of defense budget allocation
Key market trends and insights
Military doctrine and security environment
Military doctrine and strategy
Primary threat perception
Political and strategic alliances
Geopolitical social and economic scenario
Market entry strategy and regulations
Procurement policy and process
Type of contracts
Market entry route
Major deals and M&A
Market attractiveness and emerging opportunities
Market attractiveness, 2020-25
Top defense segments by value
Import and export market dynamics
Import market dynamics
Export market dynamics
Defense platform acquisitions
KM-SAM Cheongung II
AH-64E apache attack helicopter
Defense companies operating in the UAE
Main defense companies
Frequently Asked Questions
The defense expenditure of the United Arab Emirates (UAE) was valued at $22.5 billion in 2022.
The defense market in the UAE is expected to register a CAGR of more than 4% during the forecast period.
The key sectors in the UAE defense market are missiles & missile defense systems, military infrastructure & logistics, military fixed-wing aircraft, military rotorcraft, military simulation & training, military UGV, and naval vessels & surface combatants.
Some of the key companies in the UAE defense market include Advanced PyroTechnics (APT), Beacon Red, EPI, ERS, Abu Dhabi Ship Building (ADSB, ADCOM Systems, Jaheziya, ETS, GAL, Halcon, Horizon, Knowledge Point, Lahab, Remaya, and SIGN4L.
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