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

Table of Contents

1. Introduction 9

• 1.1. What is this Report About? 9
• 1.2. Definitions 9
• 1.3. Summary Methodology 11
• 1.4. About GlobalData 12

2. Executive Summary 13

3. Market Attractiveness and Emerging Opportunities 15

• 3.1. Current Market Scenario 16
  • 3.1.1. Primary Threat Perception 16
  • 3.1.2. Military Doctrine and Strategy 17
  • 3.1.3. Military Fleet Size 19
  • 3.1.4. Procurement Programs 23
  • 3.1.5. Social, Political and Economic Environment and Support for Defense Projects 27
  • 3.1.6. Political and Strategic Alliances 28
• 3.2. Defense Market Size Historical and Forecast 30
  • 3.2.1. UAE defense budget to record a CAGR of 6.47% over the forecast period 30
  • 3.2.2. Military modernization initiatives, territorial dispute with Iran, and peace keeping missions to drive defense expenditure 33
  • 3.2.3. The defense budget as a percentage of GDP is expected to increase over the forecast period 35
• 3.3. Analysis of Defense Budget Allocation 37
  • 3.3.1. Procurement of advanced equipment to drive capital expenditure allocation over the forecast period 37
  • 3.3.2. Capital expenditure is expected to grow at a CAGR of 7.39% over the forecast period 39
  • 3.3.3. Per capita defense expenditure expected to increase over the forecast period 41
• 3.4. Homeland Security Market Size and Forecast 43
  • 3.4.1. The UAE’s homeland security budget is expected to increase at a CAGR of 4.66% over the forecast period 43
  • 3.4.2. Investment in the protection of infrastructure and cyber security are expected to drive the UAE homeland security market 45
  • 3.4.3. The UAE falls under the “some risk” category on the Terrorism Index 46
  • 3.4.4. The UAE faces “some risk” by acts of terrorism 47
  • 3.4.5. The UAE has a terrorism index score of 0.2 49
• 3.5. Benchmarking with Key Global Markets 50
  • 3.5.1. The UAE’s defense budget is expected to register rapid growth over 2019-2023 50
  • 3.5.2. The UAE’s defense expenditure is relatively small when compared to the leading defense spenders 52
  • 3.5.3. The UAE spent over 6.1% of its GDP on defense in 2018 53
• 3.6. Market Opportunities: Key Trends and Drivers 54
  • 3.6.1. Top 10 Defense Sectors by Value (US$ Million) - Projections over 2018-2023 54
  • 3.6.2. Critical Infrastructure Protection - Physical Security 55
  • 3.6.3. Land-Based C4ISR 56
  • 3.6.4. Multirole Aircraft 57

4. Defense Procurement Market Dynamics 58

• 4.1. Import Market Dynamics 59
  • 4.1.1. Limitations within the domestic defense industry to encourage arms imports 59
  • 4.1.2. The UAE was the world’s fourth-largest arms importer over the historic period 60
  • 4.1.3. The US continues to be the major arms supplier to the UAE 61
  • 4.1.4. Missiles and ships dominate UAE defense imports 62
• 4.2. Export Market Dynamics 63
  • 4.2.1. The UAE has minimal defense exports 63

5. Industry Dynamics 66

• 5.1. Five Forces Analysis 66
  • 5.1.1. Bargaining Power of Supplier: Low to Medium 67
  • 5.1.2. Bargaining Power of Buyer: Medium to High 67
  • 5.1.3. Barrier to Entry: Medium to High 67
  • 5.1.4. Intensity of Rivalry: High 68
  • 5.1.5. Threat of Substitution: Low to Medium 68

6. Market Entry Strategy 69

• 6.1. Market Regulation 69
  • 6.1.1. Defense deals are settled through direct negotiation or competitive bidding 69
  • 6.1.2. Foreign OEMs prefer indirect offsets to meet the obligations associated with defense deals 69
• 6.2. Market Entry Route 71
  • 6.2.1. Budget Process 71
  • 6.2.2. Procurement Policy and Process 72
  • 6.2.3. Foreign OEMs use proxy representatives to enter the market 72
  • 6.2.4. Defense exhibitions hosted by the UAE serve as an entry route for foreign OEMs 73
  • 6.2.5. Joint ventures and collaborations offer alternative means of entering the market 73
• 6.3. Key Challenges 74
  • 6.3.1. Complying with the UAE’s stringent offset requirements a concern for OEMs 74
  • 6.3.2. The UAE demands technology transfers in its defense deals 74

7. Competitive Landscape and Strategic Insights 75

• 7.1. Competitive Landscape Overview 75
• 7.2. Key Domestic Public Sector Companies 78
  • 7.2.1. Abu Dhabi Ship Building: Overview 78
  • 7.2.2. Abu Dhabi Ship Building: Products and Services 78
  • 7.2.3. Abu Dhabi Ship Building (ADSB): Recent Announcements and Strategic Initiatives 78
  • 7.2.4. Abu Dhabi Ship Building: Alliances 79
  • 7.2.5. Abu Dhabi Ship Building: Recent Contract Wins 80
  • 7.2.6. Abu Dhabi Ship Building: Financial Analysis 81
  • 7.2.7. Gulf Logistics and Naval Support: Overview 83
  • 7.2.8. Gulf Logistics and Naval Support: Services 83
  • 7.2.9. Abu Dhabi Systems Integration: Overview 85
  • 7.2.10. Abu Dhabi Systems Integration: Products and Services 85
  • 7.2.11. Abu Dhabi Systems Integration: Recent Announcements and Strategic Initiatives 85
  • 7.2.12. Abu Dhabi Systems Integration: Alliances 85
• 7.3. Key Foreign Companies 87
  • 7.3.1. Lockheed Martin: Overview 87
  • 7.3.2. Lockheed Martin: Products 87
  • 7.3.3. Lockheed Martin: Recent Announcements and Strategic Initiatives 87
  • 7.3.4. Lockheed Martin: Alliances 89
  • 7.3.5. Lockheed Martin: Recent Contract Wins 90
  • 7.3.6. Lockheed Martin: Financial Analysis 92
  • 7.3.7. BAE Systems Plc.: Overview 94
  • 7.3.8. BAE Systems Plc.: Products 94
  • 7.3.9. BAE Systems Plc.: Recent Announcements and Strategic Initiatives 95
  • 7.3.10. BAE Systems Plc.: Alliances 96
  • 7.3.11. BAE Systems Plc. - recent contract wins 97
  • 7.3.12. BAE Systems: Financial Analysis 99
  • 7.3.13. Raytheon: Overview 101
  • 7.3.14. Raytheon: Products 101
  • 7.3.15. Raytheon: Recent Announcements and Strategic Initiatives 101
  • 7.3.16. Raytheon: Alliances 105
  • 7.3.17. Raytheon: Recent Contract Wins 106
  • 7.3.18. Raytheon: Financial Analysis 108
  • 7.3.19. Rolls-Royce Plc.: Overview 110
  • 7.3.20. Rolls-Royce Plc.: Products 110
  • 7.3.21. Rolls-Royce Plc.: Recent Announcements and Strategic Initiatives 110
  • 7.3.22. Rolls-Royce Plc.: Alliances 111
  • 7.3.23. Rolls-Royce Plc.: Recent Contract Wins 112
  • 7.3.24. Rolls-Royce Plc.: Financial Analysis 113
  • 7.3.25. Northrop Grumman Corporation: Overview 115
  • 7.3.26. Northrop Grumman Corporation: Products 115
  • 7.3.27. Northrop Grumman Corporation: Recent Announcements and Strategic initiatives 115
  • 7.3.28. Northrop Grumman Corporation: Alliances 117
  • 7.3.29. Northrop Grumman Corp.: Recent Contract Wins 119
  • 7.3.30. Northrop Grumman: Financial Analysis 121
  • 7.3.31. Thales: Overview 123
  • 7.3.32. Thales: Products 123
  • 7.3.33. Thales: Recent Announcements and Strategic Initiatives 123
  • 7.3.34. Thales: Alliances 124
  • 7.3.35. Thales: Recent Contract Wins 125
  • 7.3.36. Thales: Financial Analysis 126
  • 7.3.37. The Boeing Company: Overview 128
  • 7.3.38. The Boeing Company: Products 128
  • 7.3.39. The Boeing Company: Recent Announcements and Strategic Initiatives 128
  • 7.3.40. The Boeing Company: Alliances 130
  • 7.3.41. The Boeing Company: Recent Contract Wins 130
  • 7.3.42. The Boeing Company: Financial Analysis 132

8. Business Environment and Country Risk 134

• 8.1. Economic Performance 134
  • 8.1.1. GDP per Capita 134
  • 8.1.2. Gross Domestic Product 135
  • 8.1.3. Exports of Goods and Services (LCU Billion) 136
  • 8.1.4. Imports of Goods and Services (LCU Billion) 137
  • 8.1.5. LCU per US$ (Period Average) 138
  • 8.1.6. Market Capitalization of Listed Companies 139
  • 8.1.7. Market Capitalization of Listed Companies as a Percentage GDP 140
  • 8.1.8. Foreign Direct Investment, net (BoP, Current US$ Billion) 141
  • 8.1.9. Net Foreign Direct Investment as a Percentage of GDP 142
  • 8.1.10. Mining, Manufacturing, Utilities Output (LCU Billion) 143

9. Appendix 144

• 9.1. About GlobalData 144