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The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic


Summary

Kuwait maintains one of the highest military spending ratios per capita in the world driven by the country’s desire to have an important role to play in international affairs and bilateral relations. Kuwait consistently increased its military and security expenditure over 2015-2019 - following a dip in the year 2014 - aided by revenue generated from oil exports. The Gulf Cooperation Council (GCC) member states together are forecast to spend over US$100 billion on their defense capabilities for the first time during 2019.

Kuwaiti military and security expenditure, which stood at US$6.6 billion in 2019, registered a CAGR of 9.88% during the historical period. However, it is anticipated to grow at a CAGR of 3.69% over the forecast period to reach US$7.7 billion by 2024. The capital expenditure allocation, which stood at an average of 19.2% during the historical period, is projected to increase at an average of 20.7% during 2020-2024, primarily due to the procurement of missile defense systems, military aircraft, and naval ships. Moreover, the protection of vital infrastructure, territorial disputes with Iraq, and ongoing domestic defense industry building initiatives are expected to drive the country’s future defense expenditure.

The combination of post-war economic growth and a strong demand for US products yields many business opportunities for foreign firms in both commercial and defense sectors. Kuwait has no domestic defense production firms and the MoD relies on many foreign firms to meet its defense needs. Air defense systems accounted for the largest share of imports during 2014-2018, for which the US was the biggest supplier. The country also acquired F-18 Hornet fighters, M1A2 main battle tank (MBT), ADVS Desert Chameleon armored personnel carriers (APC), PAC-3 Patriot anti-missiles, and 10 Mark V patrol boats.

Other significant partners include Russia, France, the UAE, and the UK. The country is poised to procure Eurofighter Typhoon combat jets, along with 24 fixed-wing H225m Caracal helicopters and light armored vehicles, in a deal worth US$2.8 billion. Due to these factors, Kuwait’s defense imports are expected to increase over the forecast period.

The report "Kuwaiti Defense Market - Attractiveness, Competitive Landscape and Forecasts to 2024", offers detailed analysis of the Kuwaiti defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

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 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
  • 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 Kuwaiti defense industry



Companies mentioned: Lockheed Martin, Raytheon, Abu Dhabi Ship Building PJSC, Boeing, Eurofighter Jagdflugzeug, Airbus Helicopters, Leonardo, General Dynamics


Scope

  • Kuwait consistently increased its military and security expenditure over 2015-2019 - following a dip in the year 2014 - aided by revenue generated from oil exports. The Gulf Cooperation Council (GCC) member states together are forecast to spend over US$100 billion on their defense capabilities for the first time during 2019.
  • The country’s defense budget is expected to expand with increases in spending primarily focused on modernizing military force structure and improving readiness in response to continuing regional instability in the Gulf Area. Kuwaiti military and security expenditure, which stood at US$6.6 billion in 2019, registered a CAGR of 9.88% during the historical period.




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, key trends and latest industry contracts.