Jordan Defence and Security Report 2016
BMI View: We expect Jordan's defence budget to continue increasing both in absolute terms and as a share of GDP over the next five years.
This will be driven primarily by the country's need to increase its armed forces' capabilities, in order to be able to efficiently contribute to the US-led international coalition's efforts against IS.
Thus, whilst little investment will be focused on the development of the domestic defence manufacturing sector, much of the spending will open up opportunities for countries and new defence trade partners to contribute to Jordan's efforts to increase its capabilities.
Jordan's defence manufacturing sector remains characterized by a lack of opportunities and development.
Although the country presents a significant number of positive characteristics that create the potential for a good business environment, such as economic and investment openness, a skilled labour force and low corruption levels, this sector has benefitted from very little investment.
This is the result, primarily, of a defence strategy that has so far been essentially focused on the development of a small but very well trained and equipped army.
Whilst some of the equipment has been provided through the domestic defence sector, most have been imported from the country's main defence trade partner - the US.
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