Future of the Jordan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022
Jordan is arguably one of the most militarized nations in the Middle East in terms of number of heavy weapons available and defense expenditure as a percentage of GDP. The country has been inundated by an influx of refugees from war-effected neighbors such as Syria, Iraq, and Israel since 1948, a situation that has put a strain on the economy. Jordan was part of the Arab Spring, a movement of political unrest and internal conflict in the Middle Eastern nations, whereby a lack of substantive political reforms and economic restructuring by King Abdullah II caused young people to demonstrate.
Jordan’s defense expenditure rose from US$1.5 Billion in 2013 to US$2.1 Billion in 2017, at a CAGR of 8.28%, primarily due to the country’s precarious security environment aggravated by the responsibility of hosting a large refugee population. Attempts to modernize its military equipment will therefore drive its defense expenditure over the forecast period, which is projected to grow at a CAGR of 5.30% through to 2022. Jordan will maintain its budget allocation for capital expenditure at an average of 4% over the forecast period, with the US providing military aid.
Jordan has a fairly limited capital expenditure on defense with its capital budget outlay for 2017 standing at US$62.2 million. However, the country is a recipient of US military aid, which augments the country’s defense capital spending to US$534.3 million for 2017. Despite receiving US military aid, its limited defense capital expenditure does not equip the government with the bargaining power to impose offsets on procurement deals and acts as a barrier to the entry for foreign multinationals.
During 2013–2017, the country’s defense expenditure averaged US$1.8 Billion and included US$418.6 million in foreign military aid annually. Jordan’s homeland security expenditure declined from US$1.3 Billion in 2013 to US$957.3 million in 2017, as these funds were diverted to curb internal conflicts and control the overspill of refugees. During the historic period, Jordan focused on importing armored vehicles, aircraft, missiles, and artillery, which will continue to be primary weapon categories over the forecast period.
The report “Future of the Jordan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022” offers detailed analysis of the Jordan 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, this report provides the following -
- The Jordan defense industry market size and drivers: Detailed analysis of the Jordan defense industry during 2018–2022, 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 Jordan 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 Jordan 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 in this report: The King Abdullah II Design and Development Bureau (KADDB)
- Jordan’s defense expenditure rose from US$1.5 billion in 2013 to US$2.1 billion in 2017, at a CAGR of 8.28% due to the country’s precarious security environment aggravated by the responsibility of hosting a large refugee population. Attempts to modernize its military equipment will therefore drive its defense expenditure over the forecast period.
- In Jordan, the military is one of the largest employment generators in the public service sector. Salaries account for a higher percentage of the country’s total expenditure on defense and security. During the historic period, 96.6% of the defense budget was allocated to revenue expenditure including salaries, logistics, operational costs, training, and maintenance. The remaining 3.4% was allocated to capital expenditure. Over the forecast period, the government will maintain its current allocation to capital expenditure, averaging 3.3% of the total defense budget.
- The MoD is expected to invest in border security systems & equipment, armored vehicles, and patrol boats 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 Jordan 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 Jordan defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts
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