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Kuwait Defence and Security Report Q1 2008

Published by: Business Monitor International

Published: Feb. 4, 2008 - 39 Pages


Table of Contents


Executive Summary
SWOT Analysis
Kuwait Political SWOT
Kuwait Security SWOT
Kuwait Defence Industry SWOT
Kuwait Business Environment SWOT
Kuwait Economic SWOT
Political Overview
Domestic Political Outlook
Risks To Outlook
External Political Outlook
Security Risk Analysis
BMI’s Security Ratings
Table: Middle East & North Africa Defence & Security Ratings
Table: Middle East & North Africa: State Terrorism Vulnerability Index
Regional Security: The Middle East and North Africa
Inter-State Conflicts
Internal Conflicts
Kuwait Security Risk Ratings
Kuwait Conflict Risk
Kuwait Terrorism Risk
Kuwait Physical Safety Risk
Security Overview
Internal Security
External Security Situation
Background Issues
Internal Security Situation
Iraq
Islamic Militancy
Military Structure & Defence Industry
Armed Forces
Table: Regional Armed Forces (including conscripted) 2007
International Deployments
Weapons of Mass Destruction
Market Structure
Arms Trade Overview
Industry Trends & Developments
Procurement Trends & Developments
Other Q407 Procurement
Procurement Background
Industry Forecast Scenario
Table: Kuwait Defence Sector - Historical Data & Forecasts
Key Risks to BMI’s Forecast Scenario
Macroeconomic Forecast
Table: Kuwait - Economic Activity
BMI Forecast Modelling
How we generate our industry forecasts
Defence Industry
Sources


Abstract

Although Kuwait enjoys a generally high inter-state security rating, with the US and Iran continuing to
square off in a confrontation over the latter’s nuclear programme, these are nervous times in the region.
Iran has implied that any attack on its territory will be met with a missile-led counter-attack on US forces
in the Gulf, including those stationed in Kuwait. This worry lies behind Kuwait’s current focus on a
US$9bn upgrade and extension of its Patriot missile defence system. Some analysts have gone as far as
suggesting that the installation of the Patriot system is a major factor in US planning around any
‘window’ for some kind of military action against Tehran during the course of 2008.


Setting the Iran wild card on one side, an ongoing issue for Kuwait is how it responds to both domestic
and international pressures to undertake political reforms with the aim of increasing democracy in the
state. The deadlock between the government and parliament, while reflecting the country’s relative
political openness, is also getting in the way of economic reforms and development - the danger is that it
may end up being a real source of domestic instability and therefore generate insecurity.
Kuwait has a small number of indirect security threats, but benefits from the external security endowed
upon it by the US. In the past, its geo-strategic location made it precarious to threats, from an Iraqi
invasion in 1991 and the possibility of an Iraqi missile strike on Kuwait prior to the US-led coalition
invasion of Iraq in 2003. Kuwait faces a limited internal threat from al-Qaeda-linked militants operating
on Kuwaiti soil. As with many of the region’s ruling regimes, there is a degree of protest from within
disaffected sections of the population. The emirate will remain concerned with the ongoing instabilities in
post-war Iraq and the possibility of Kuwaiti jihadis returning from Iraq.


Kuwait lacks an established indigenous defence industry of significance, and its armed forces are almost
entirely reliant upon procurements from foreign sources for equipment and training. The Kuwaiti
economy is currently able to support a high level of military expenditure as high oil prices raised the oil
revenue in recent years, leading to record excess budget surpluses. The continuation of the upgrading of
Kuwaiti military hardware and equipment is unlikely to decrease in the near future given the ongoing US
involvement in the region and the current strength of the Kuwaiti economy. On this basis, high military
expenditure is therefore likely to continue into the foreseeable future. US foreign military assistance will
continue to dominate Kuwait’s imports trade with the vast majority of its arms procurements being
supplied by US-based companies. Kuwait does, however, increasingly obtain arms from a wider source of
suppliers, including European and Asian states. The emirate does not have an extensive arms export
industry.



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