Future of the Iraqi Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Table of Contents

1. Introduction 8

• 1.1. What is this Report About? 8
• 1.2. Definitions 8
• 1.3. Summary Methodology 11
• 1.4. About GlobalData 13

2. Executive Summary 14

3. Market Attractiveness and Emerging Opportunities 16

• 3.1. Current Market Scenario 17
  • 3.1.1. Primary threat perception 17
  • 3.1.2. Military Doctrine & Strategy 18
  • 3.1.3. Military Fleet Size 20
  • 3.1.4. Procurement Programs 23
  • 3.1.5. Top Procurement Programs by Value (US$ Million) 2018-2023 24
  • 3.1.6. Social, Political and Economic Environment & Support for Defense Projects 25
  • 3.1.7. Political and Strategic Alliances 26
• 3.2. Defense Market Size Historical and Forecast 27
  • 3.2.1. Iraqi annual defense expenditure to reach US$8.7 billion by 2023 27
  • 3.2.2. US Military and Security Aid 29
  • 3.2.3. Territorial disputes and the war against terrorism are expected to drive defense expenditure 31
  • 3.2.4. Iraq’s defense expenditure as a percentage of GDP to decrease over 2019-2023 32
• 3.3. Analysis of Defense Budget Allocation 34
  • 3.3.1. Capital expenditure share to average 23.6% over the forecast period 34
  • 3.3.2. Capital expenditure to increase over the forecast period 36
  • 3.3.3. Per capita defense expenditure expected to increase over the forecast period 38
• 3.4. Homeland Security Market Size and Forecast 39
  • 3.4.1. Allocation for the police forms the major component of the country’s homeland security expenditure 39
  • 3.4.2. Fighting terrorism, controlling sectarian violence, and oil infrastructure protection will be the key factors driving homeland security 41
  • 3.4.3. Iraq is considered to be the country “worst affected” by terrorism 42
  • 3.4.4. Iraq is the most terror prone country in the world 43
  • 3.4.5. Iraq has a terrorism index score of “10.0” 45
• 3.5. Benchmarking with Key Global Markets 46
  • 3.5.1. Iraqi defense expenditure expected to record a CAGR of 5.56% over 2019-2023 46
  • 3.5.2. Iraqi defense expenditure is low compared to other major defense spenders 48
  • 3.5.3. Iraq’s defense expenditure is anticipated to reach 3.0% of GDP in 2023 49
• 3.6. Market Opportunities: Key Trends and Growth Stimulators 50
  • 3.6.1. Top 10 Defense Market Sectors by Value (US$ Million) - Projections Over 2018-2023 50
  • 3.6.2. Military Infrastructure and Logistics-Infrastructure Construction 51
  • 3.6.3. Land-based C4ISR 52
  • 3.6.4. Military Infrastructure and Logistics-Facilities Management 53

4. Defense Procurement Market Dynamics 54

• 4.1. Import Market Dynamics 55
  • 4.1.1. Defense imports projected to increase over the forecast period 55
  • 4.1.2. The US and Russia were the leading suppliers of arms during 2013-2017 56
  • 4.1.3. Aircraft and armored vehicles accounted for the majority of defense imports between 2013 and 2017 57
• 4.2. Export Market Dynamics 58
  • 4.2.1. Iraq’s defense export market is negligible 58

5. Industry Dynamics 59

• 5.1. Five Forces Analysis 59
  • 5.1.1. Bargaining Power of the Supplier: Medium 60
  • 5.1.2. Bargaining Power of the Buyer: Medium 60
  • 5.1.3. Barriers to Entry: Low 60
  • 5.1.4. Intensity of Rivalry: Medium to High 60
  • 5.1.5. Threat of Substitution: Medium to High 60

6. Market Entry Strategy 61

• 6.1. Market Regulation 61
  • 6.1.1. The Iraqi government allows FDI in the defense industry 61
  • 6.1.2. Iraq has not disclosed any offset obligations 61
• 6.2. Market Entry Route 62
  • 6.2.1. Budgeting Process 62
  • 6.2.2. Procurement Policy and Process 62
  • 6.2.3. Government to government deals are an attractive entry route to the country’s defense market 62
  • 6.2.4. Establishment of representative office obtains eligibility for participating in procurement tenders 62
• 6.3. Key Challenges 64
  • 6.3.1. Corruption acts as an obstacle for market entry 64
  • 6.3.2. Lack of skilled labor 64

7. Competitive Landscape and Strategic Insights 65

• 7.1. Competitive Landscape Overview 65
  • 7.1.1. Top Defense Suppliers in Iraqi Defense Industry by Value (US$ Million), 2018-2023 65
  • 7.1.2. Iraqi defense sector is dominated by foreign competitors 66
• 7.2. Key Foreign Companies 67
  • 7.2.1. General Dynamics Corporation: Overview 67
  • 7.2.2. General Dynamics Corporation: Products 67
  • 7.2.3. General Dynamics Corporation: Recent Announcements and Strategic Initiatives 69
  • 7.2.4. General Dynamics Corporation: Alliances 69
  • 7.2.5. General Dynamics Corporation: Recent Contract Wins 69
  • 7.2.6. Lockheed Martin: Overview 71
  • 7.2.7. Lockheed Martin: Products 71
  • 7.2.8. Lockheed Martin: Recent Announcements and Strategic Initiatives 71
  • 7.2.9. Lockheed Martin: Alliances 72
  • 7.2.10. Lockheed Martin: Recent Contract Wins 72
  • 7.2.11. BAE Systems Plc: Overview 74
  • 7.2.12. BAE Systems Plc: Products and Services 74
  • 7.2.13. BAE Systems Plc: Recent Announcements and Strategic Initiatives 75
  • 7.2.14. BAE Systems Plc: Alliances 75
  • 7.2.15. BAE Systems Plc: Recent Contract Wins 75
  • 7.2.16. Bell Helicopter Textron, Inc: Overview 77
  • 7.2.17. Bell Helicopter Textron, Inc: Products and Services 77
  • 7.2.18. Bell Helicopter Textron, Inc: Recent Announcements and Strategic Initiatives 77
  • 7.2.19. Bell Helicopter Textron, Inc: Alliances 78
  • 7.2.20. Bell Helicopter Textron, Inc: Recent Contract Wins 78
  • 7.2.21. Raytheon: Overview 80
  • 7.2.22. Raytheon: Products 80
  • 7.2.23. Raytheon: Recent Announcements and Strategic Initiatives 80
  • 7.2.24. Raytheon: Alliances 81
  • 7.2.25. Raytheon: Recent Contract Wins 82
  • 7.2.26. Raytheon: Financial Analysis 83

8. Business Environment and Country Risk 85

• 8.1. Economic Performance 85
  • 8.1.1. GDP Per Capita 85
  • 8.1.2. GDP, Current Prices 86
  • 8.1.3. Exports of Goods and Services (LCU Trillion) 87
  • 8.1.4. Imports of Goods and Services (LCU Trillion) 88
  • 8.1.5. Local Currency Unit per US$ 89
  • 8.1.6. Goods Exports as a Percentage of GDP 90
  • 8.1.7. Goods Imports as a Percentage of GDP 91
  • 8.1.8. Service Imports as a Percentage of GDP 92
  • 8.1.9. Service Exports as a Percentage of GDP 93
  • 8.1.10. Foreign Direct Investment 94
  • 8.1.11. Net Foreign Direct Investment as a Percentage of GDP 95
  • 8.1.12. Mining, Manufacturing, Utilities Output 96

9. Appendix 97

• 9.1. About GlobalData 97