Summary
Kuwait remains wary of the resurgence of Islamic State (IS) in neighboring Iraq with which shares a long border and continues to face the threat of IS infiltration. Although the influence of IS reduced significantly by 2017, IS extremists, which in the past orchestrated an attack on Imam Sadiq mosque in the Al Sawabir area of Kuwait City, can regroup and launch strikes on other targets within Kuwait. Thus Kuwait is expected to invest heavily in securing is frontiers to prevent illegal infiltration.

With a military expenditure of US$7.6 billion in 2018, Kuwait is expected to cumulatively spend US$48.3 billion on its military over the forecast period. Kuwaiti military and security expenditure, registered a CAGR of 6.87% during the historic period.

Between 2014 and 2018, the country allocated an average of 19.3% of the total defense budget to capital expenditure, and the remaining 80.7% to revenue expenditure. The country’s revenue expenditure is characterized by high levels of investment in operating its military, such as salaries and the pensions of retired personnel. Over the forecast period, the Kuwaiti Ministry of National Defense (MND) is expected to increase its current level of allocation for capital expenditure, averaging 21.3% of the total defense budget.

The MoD is expected to invest in multirole aircraft, corvettes, and airborne C4ISR among others. As it is poised to procure Eurofighter Typhoon combat jets, along with 24 fixed wing Caracas helicopters and light armored vehicles, in a deal worth US$2.8 billion. Due to the lack of domestic manufacturing forces, Kuwait relies on imports, which are expected to increase over the forecast period.

Future of the Kuwaiti Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023, provides readers with detailed analysis of both historic and forecast defense industry values (market size), factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.

In particular, it provides an in-depth analysis of the following -

  • The Kuwaiti defense industry market size and drivers: detailed analysis of the Kuwaiti 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
  • Porter’s Five Force analysis of the Kuwaiti defense industry: analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry
  • Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
  • Market opportunities: details of the top five defense investment opportunities over the next 10 years
  • Competitive landscape and strategic insights: analysis of the competitive landscape of the Kuwaiti defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis



Companies Mentioned - Lockheed Martin, Raytheon, Abu Dhabi Ship Building (ADSB), Boeing, Eurofighter Jagdflugzeug, Airbus Helicopters and General Dynamics


Scope

  • With a military expenditure of US$7.6 billion in 2018, Kuwait is expected to cumulatively spend US$48.3 billion on its military over the forecast period. Kuwaiti military and security expenditure, which stood at US$7.6 billion in 2018, registered a CAGR of 6.87% during the historic period.
  • Between 2014 and 2018, the country allocated an average of 19.3% of the total defense budget to capital expenditure, and the remaining 80.7% to revenue expenditure
  • The country’s revenue expenditure is characterized by high levels of investment in operating its military, such as salaries and the pensions of retired personnel.
  • Over the forecast period, the Kuwaiti Ministry of National Defense (MND) is expected to increase its current level of allocation for capital expenditure, averaging 21.3% of the total defense budget.
  • The MoD is expected to invest in multirole aircraft, corvettes, and airborne C4ISR among others




Reasons To Buy

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Kuwaiti 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
  • Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector
  • A deep qualitative analysis of the Kuwaiti defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts