Summary

Omani military expenditure is US$9 billion in 2019, and registered a CAGR of -2.39% during 2015-2019. The defense spending in the Middle East has declined over the past year, despite a string of ongoing conflicts across the region, including in Syria, Iraq, Yemen and Libya. The decline in the defense budget during the historical period is primarily due to the country’s heavy reliance on oil and gas revenues to fund its expensive defense modernization programs.

However, with Brent crude supplies expected to come under strain, owing to sanctions on Iran and disruption in the production of Venezuelan and Libyan oil, oil prices are likely to touch US$90 per barrel. As a consequence, an increase in the oil prices is projected to enable Oman to earmark greater resources to its defense sector. Oman’s defense expenditure is expected to grow at a CAGR of 0.56% during the forecast period to reach US$9.3 billion by 2024. As a percentage of GDP, the country’s defense budget is expected to decrease from an average of 12.3% during 2015-2019 to an average of 9.9% during the forecast period.

Oman is anticipated to focus on modernizing the capability of its armed forces to keep pace with its neighbors such as the UAE, Saudi Arabia, and Bahrain. Also, an arms race in the region, which has now intensified owing to the growing turbulence in countries such as Syria and Yemen, is expected to drive the country’s defense expenditure during the forecast period. The country’s capital expenditure allocation, which stood at an average of 40.1% during the historical period, is projected to increase at an average of 41.3% during 2020-2024, primarily due to the country’s procurement of advanced defense equipment.

Among the major procurements are multirole aircraft, missile defense systems, armored vehicles, and military rotorcraft. Oman is expected to remain as one of the biggest buyers of defense equipment globally over the coming decade. Investment into strengthening naval and air defense capabilities is expected to drive defense imports. Oman’s defense imports continued to increase during 2013 and 2014, but declined drastically in 2015 owing to the paucity of new procurement deals signed during that year. However, defense imports managed to recover in 2016 and continued to increase in 2017.

During 2013-2017, aircraft accounted for the largest defense expenditure, with the UK being the largest supplier. Other significant import partners include the US, Norway, Spain, France, Singapore, the Netherlands, Australia, Turkey, Germany, Italy, Canada and Denmark. Naval vessels, missiles, air defense systems, sensors, engines, armored vehicles, and naval weapons were the other key imports during 2013-2017.

The report "Future of the Omani Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024", provides readers with detailed analysis of both historic and forecast defense industry values, 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 Omani defense industry market size and drivers: detailed analysis of the Omani defense industry during 2020-2024, 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 Omani 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 Omani 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: BAE Systems, Lockheed Martin, NH Industries (NHI), Raytheon, FNSS Defense Systems and Bell


Scope

  • Omani military expenditure is US$9 billion in 2019, and registered a CAGR of -2.39% during 2015-2019. The defense spending in the Middle East has declined over the past year, despite a string of ongoing conflicts across the region, including in Syria, Iraq, Yemen and Libya. The decline in the defense budget during the historical period is primarily due to the country’s heavy reliance on oil and gas revenues to fund its expensive defense modernization programs.
  • During 2015-2019, an average of 40.1% of the country’s total defense budget was allocated to capital expenditure, while an average of 59.9% was reserved for revenue expenditure. An increase in capital expenditure during the forecast period is primarily due to the country’s procurement plans for multirole aircraft, missile defense systems, armored vehicles, and military rotorcraft.
  • The MoD is expected to invest in Land-based physical security of critical infrastructure, land based C4ISR and infrastructure construction.




Reasons To Buy

  • This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Omani 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 Omani defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts.