On the parameters of volume of heavy weapons available and defense expenditure as a percentage of GDP, Jordan is arguably one of the most militarized nations in the Middle East. Since 1948, the country has been inundated by an influx of refugees from neighboring war-effected Syria, Iraq, and Israel - a situation that has put certain strain on the economy. Jordan was part of the Arab Spring, a movement of political unrest and internal conflict in Middle Eastern nations, whereby a lack of substantive political reforms and economic restructuring by King Abdullah II caused young people to demonstrate.
Jordan’s defense expenditure rose from US$1.6 billion in 2014 to US$2 billion in 2018, at a CAGR of 6.66% due to the country’s precarious security environment, aggravated by the responsibility of hosting a large refugee population. Attempts to modernize its military equipment will therefore drive its defense expenditure over the forecast period, which is projected to rise from US$2.1 billion in 2019 to US$2.6 billion by 2023, at a CAGR of 5.60%. Jordan will maintain its budget allocation for capital expenditure at an average of 3.3% over the forecast period, with the US providing military aid.
Due to a lack of domestic production capabilities, Jordan relies heavily on military imports. During the historic period, defense imports comprised aircraft, missiles, and armored vehicles from the Netherlands, Russia, Belgium, the US, the UAE, South Korea, and the UK - all of which were partly financed by the US. However, with the Trump administration is seeking to curtail US military and economic aid to Jordan from US$453.7 million in 2016 to US$353.8 million in 2019, imports could stabilize somewhat over the next five years.
During 2014-2018, defense expenditure averaged US$1.9 billion, and included an average of US$404.8 million in foreign military aid. Jordan’s homeland security expenditure declined from US$1.4 billion in 2014 to US$1.0 billion in 2018, as funds were diverted to curb internal conflicts and control the overspill of refugees. During the historic period, Jordan focused on importing armored vehicles, aircraft, missiles, and artillery, all of which will continue to be primary weapon categories over the forecast period. Efforts to develop its domestic defense industry will present firms with growth opportunities and enhance the country’s market attractiveness.
The report "Future of the Jordanian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023" offers detailed analysis of the Jordanian defense industry with market size forecasts covering the next five years.
In particular, it provides an in-depth analysis of the following -
- The Jordanian defense industry market size and drivers: detailed analysis of the Jordanian defense industry during 2019-2023, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns
- Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country
- Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
- Market opportunities: list of the top ten defense investment opportunities over the next 5 years
- Competitive landscape and strategic insights: analysis of the competitive landscape of the Jordanian defense industry.
Companies mentioned in this report - KADDB
- Jordan’s defense expenditure rose from US$1.6 billion in 2014 to US$2 billion in 2018, at a CAGR of 6.66% due to the country’s precarious security environment, aggravated by the responsibility of hosting a large refugee population.
- Attempts to modernize its military equipment will therefore drive its defense expenditure over the forecast period, which is projected to rise from US$2.1 billion in 2019 to US$2.6 billion by 2023, at a CAGR of 5.60%.
- Jordan will maintain its budget allocation for capital expenditure at an average of 3.3% over the forecast period, with the US providing military aid.
Reasons To Buy
- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Jordanian defense industry market trends for the coming five years
- The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
- Profiles of the top domestic and foreign defense manufacturers . This will provide the user with a total competitive landscape of the sector
- A deep qualitative analysis of the Jordanian defense industry covering sections including demand drivers, Key Trends , and latest industry contracts