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Future of the Qatari Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

Future of the Qatari Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

Summary

Qatar is a small peninsular country with a geographical area of under 12,000sq.km and a native population of under a quarter of a million. However, it is the third largest country in the world in terms of natural gas reserves and has the highest GDP per capita. Wealthy countries such as Qatar need a strong military to reinforce their economic influence and protect their interests. The country is currently in a phase of military modernization, with the aim of keeping pace with its neighbors such as the UAE, Bahrain, and Oman.

The country’s capital expenditure is expected to increase from about US$1.4 Billion in 2017 to around US$2.7 Billion in 2022, growing at a strong CAGR of over 14.5% during the forecast period. The Qatari Defense Ministry is expected to procure attack and multi-utility helicopters, missile defense systems, fighter aircraft, main battle tanks, and early warning radar systems.

Qatari defense industry is one of the fastest-growing defense markets in the Middle East, and, due to the underdeveloped domestic defense sector, relies on foreign OEMs (original equipment manufacturers) to strengthen its defense capabilities. During 2012–2016, Qatar sourced the majority of its defense imports from companies based in the US, which dominated by fulfilling around 68% of the country’s arms imports. Aircrafts accounted for over 51% of Qatar’s arms imports, followed by missile systems and armored vehicles.

The report ""Future of the Qatari Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022"" offers detailed analysis of the Qatari 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 Qatari defense industry market size and drivers: detailed analysis of the Qatari 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 Qatari 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 Qatari 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: Lockheed Martin, Sikorsky Aircraft, Raytheon, Pilatus Aircraft Ltd.

Scope

Qatar is a small peninsular country with a geographical area of under 12,000sq.km and a native population of under a quarter of a million. However, it is the third largest country in the world in terms of natural gas reserves and has the highest GDP per capita. Wealthy countries such as Qatar need a strong military to reinforce their economic influence and protect their interests. The country is currently in a phase of military modernization, with the aim of keeping pace with its neighbors such as the UAE, Bahrain, and Oman. The main factors driving procurement in the region are the arms race in the Middle East region, modernization initiatives, and a perceived security threat from Iran. With a lack of indigenous defense capabilities and trained manpower, the country is seeking advanced defense equipment from foreign OEMs in order to provide effective protection to its strategic assets and critical infrastructure. With natural gas prices increasing, the cash rich government is focused on increasing its military expenditure, which stands at US$5.1 billion in 2017.

Reasons to buy

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


1. Introduction
1.1 What is this Report About?
1.2 Definitions
1.3 Summary Methodology
1.4 About Strategic Defence Intelligence
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Primary Threat Perception
3.1.2. Military Doctrine & Strategy
3.1.3. Military Fleet Size
3.1.4. Procurement Programs
3.1.5. Social, Political and Economic Environment & Support for Defense Projects
3.1.6. Political & Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Qatari defense budget to grow at a CAGR of 10.34% during 2018-2022
3.2.2. The arms race in the Middle East and strong cash reserves are the main factors driving Qatari defense expenditure
3.2.3. Defense expenditure as a percentage of GDP to increase over the forecast period
3.3. Analysis of Defense Budget Allocation
3.3.1. Procurement of advanced equipment to drive capital expenditure allocation over the forecast period
3.3.2. Capital expenditure is expected to grow at a CAGR of 14.53% over the forecast Period
3.3.3. Qatar’s per capita defense expenditure is expected to increase over the forecast period
3.4. Homeland Security Market Size and Forecast
3.4.1. Homeland security (HLS) expenditure in Qatar is mainly driven by Maritime security, the FIFA World Cup 2022, and Cyber-Security
3.4.2. Qatar falls under ‘some risk category’ by terrorist attack
3.4.3. Qatar faces “Some Risk” of terrorism
3.4.4. Qatar has a terrorism index score of 0.2
3.5. Benchmarking with Key Global Markets
3.5.1. Qatari defense budget expected to register rapid growth over 2017-2022
3.5.2. Qatari defense expenditure is small compared to the leading spenders
3.5.3. Qatar spent over 2.9% of its GDP on defense in 2017
3.6. Market Opportunities: Key Trends and Drivers
3.6.1. Demand for missile defense systems is expected to increase
3.6.2. Fighters & Multi-Role Aircraft
3.6.3. Naval Vessels -Corvettes
4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Qatari defense industry is import driven
4.1.2. US to continue to be major arms suppliers to Qatar
4.1.3. Aircraft and Missiles to dominate Qatari defense imports
4.2. Export Market Dynamics
4.2.1. Qatar’s defense export market is negligible
5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: high
5.1.2. Bargaining power of buyer: medium to high
5.1.3. Barrier to entry: medium
5.1.4. Intensity of rivalry: low to medium
5.1.5. Threat of substitution: medium-high
6. Market Entry Strategy
6.1. Market Regulation
6.1.1. The Qatari Government does not disclose FDI in the defense industry
6.1.2. Qatar has an undisclosed offset policy
6.2. Market Entry Route
6.2.1. Budgeting Process
6.2.2. Procurement Policy and Process
6.2.3. Historical evidence points to government-government deals being the preferred entry route
6.2.4. Gulf Co-operation Council (GCC) to form joint Military Command, which could be an alternative entry route for foreign OEM’s
6.2.5. Cooperative agreement and military collaborations an easier way to access the Qatari defense market
6.3. Key Challenges
6.3.1. US domination of the Qatari defense market reduces opportunities for other foreign manufacturers
6.3.2. Scarcity of skilled labor
6.3.3. Drastic decline in global energy prices forces the country to re-evaluate requirements and prioritize defense spending in key sectors
7. Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Foreign Companies
7.2.1. Lockheed Martin: overview
7.2.2. Lockheed Martin: products
7.2.3. Lockheed Martin: recent announcements and strategic initiatives
7.2.4. Lockheed Martin: alliances
7.2.5. Lockheed Martin: recent contract wins
7.2.6. Lockheed Martin: Financial Analysis
7.2.7. Sikorsky: overview
7.2.8. Sikorsky: products and services
7.2.9. Sikorsky: recent announcements and strategic initiatives
7.2.10. Sikorsky: alliances
7.2.11. Sikorsky: recent contract wins
7.2.12. Raytheon: overview
7.2.13. Raytheon: products
7.2.14. Raytheon: recent announcements and strategic initiatives
7.2.15. Raytheon: alliances
7.2.16. Raytheon: recent contract wins
7.2.17. Raytheon: Financial Analysis
7.2.18. Pilatus Aircraft Limited: Overview
7.2.19. Pilatus Aircraft Limited: Products and services
7.2.20. Pilatus Aircraft Limited: Recent announcements and strategic initiatives
7.2.21. Pilatus Aircraft Limited: Alliances
7.2.22. Pilatus Aircraft Limited: Recent contract wins
8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. GDP per Capita per Capita (US$)
8.1.2. Gross Domestic Product, current US$
8.1.3. Exports of Goods and Services
8.1.4. Imports of Goods and Services (Current LCU)
8.1.5. Gross national disposable income
8.1.6. Local Currency Unit per US$
8.1.7. Market Capitalization of Listed Companies
8.1.8. Market Capitalization of Listed Companies as a % GDP
8.1.9. Government Cash Surplus/Deficit
8.1.10. Goods Exports as a % of GDP
8.1.11. Goods Imports as a % of GDP
8.1.12. Services Imports as a % of GDP
8.1.13. Services Exports as a % of GDP
8.1.14. Net Foreign Direct Investment
8.1.15. Net foreign direct investment as % of GDP
8.1.16. Mining, Manufacturing, Utilities Output
9. Appendix
9.1. About SDI
9.2. Disclaimer
List of Tables
Table 1: The Qatari Land Forces Strength
Table 2: Qatar Navy Strength
Table 3: Qatar Air Force Strength
Table 4: Qatari - Ongoing Development and Procurement Programs
Table 5: Qatari - Future Procurement Programs
Table 6: Qatari Defense Expenditure (QAR Billion & US$ Billion), 2013-2022
Table 7: Qatari GDP Growth and Defense Expenditure as Percentage of GDP Growth, 2013-2022
Table 8: Qatari Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2022
Table 9: Qatari Defense Capital Expenditure (QAR Billion & US$ Billion), 2013-2022
Table 10: Qatari Per Capita Defense Expenditure (US$), 2013-2022
Table 11: Terrorism Index, 2017
Table 12: Benchmarking with Key Markets - 2013-2017 vs. 2018-2022
Table 13: Competitive Landscape of the Qatar Defense Industry
Table 14: Lockheed Martin - Product Focus
Table 15: Lockheed Martin - Alliances
Table 16: Lockheed Martin- Recent Contract Wins
Table 17: Silkorsky Products and Services
Table 18: Sikorsky: Alliances
Table 19: Sikorsky: Recent Contract Wins
Table 20: Raytheon - Product Focus
Table 21: Raytheon - Alliances
Table 22: Raytheon - Recent Contract Wins
Table 23: Pilatus Aircraft Limited - Product Focus
Table 24: Pilatus Aircraft Limited - Alliances
Table 25: Pilatus Aircraft Limited - Recent Contract Wins
List of Figures
Figure 1: Qatari Defense Expenditure (QAR Billion), 2013-2022
Figure 2: Qatari Defense Expenditure (US$ Billion), 2013-2022
Figure 3: Qatar GDP Growth and Defense Expenditure as Percentage of GDP Growth, 2013-2022
Figure 4: Qatari Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2022
Figure 5: Qatari Defense Capital Expenditure (QAR billion), 2013-2022
Figure 6: Qatari Defense Capital Expenditure (US$ billion), 2013-2022
Figure 7: Qatari Per-Capita Defense Expenditure (US$ ), 2013-2022
Figure 8: Terrorism Heat Map, 2017
Figure 9: Terrorism Index, 2017
Figure 10: Benchmarking with World’s Largest and Top Regional Defense Spenders (US$ Billion), 2013-2017 vs. 2018-2022
Figure 11: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2017 and 2022
Figure 12: : Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2017
Figure 13: Missile Systems Market Size (US$ Million), 2017-2027
Figure 14: Fighters and Multi-role Aircraft (US$ Million), 2017-2027
Figure 15: Corvettes Market Size (US$ Million), 2017-2027
Figure 16: Qatari Defense Imports (US$ million), 2012-2016
Figure 17: Qatari Defense Imports by Country (%), 2012-2016
Figure 18: Qatari Defense Imports by Category, 2012-2016
Figure 19: Industry Dynamics - Porter’s Five Forces Analysis
Figure 20: Lockheed Martin - Revenue Trend Analysis (US$ Billion), 2012-2016
Figure 21: Lockheed Martin - Operating Profit Trend Analysis (US$ billion), 2012-2016
Figure 22: Lockheed Martin - Net Profit Trend Analysis (US$ billion), 2012-2016
Figure 23: Raytheon - Revenue Trend Analysis (US$ Billion), 2012-2016
Figure 24: Raytheon - Operating Profit Trend Analysis (US$ billion), 2012-2016
Figure 25: Raytheon - Net Profit Trend Analysis (US$ billion), 2012-2016
Figure 26: Qatari GDP per capita (US$), 2015-2025
Figure 27: Qatari Gross Domestic Product (current US$ Billion), 2015-2025
Figure 28: Qatari Exports of goods and services (LCU Billion), 2005-2014
Figure 29: Qatari Imports of goods and services (LCU), 2005-2014
Figure 30: Qatari Gross national disposable income (US$ billion), 2005-2014
Figure 31: Qatari LCU per US$, 2015-2024
Figure 32: Qatari market capitalization of listed companies (US$ Billion), 2005-2012
Figure 33: Qatari Market Capitalization of listed companies as a % of GDP, 2005-2012
Figure 34: Qatari Government Cash Surplus/deficit as % of GDP , 2005-2010
Figure 35: Qatari Goods Exports as a % of GDP 2011-2014
Figure 36: Qatari Goods Imports as a % of GDP 2011-2014
Figure 37: Qatari Services Imports as a % of GDP 2011-2014
Figure 38: Qatari Services Exports as a % of GDP, 2011-2014
Figure 39: Qatari Net Foreign Direct Investment (current US$ Billion) 2011-2014
Figure 40: Qatari Net Foreign Direct Investment as a % of GDP 2011-2014
Figure 41: Qatari Mining, Manufacturing, Utilities Output (LCU Billion) 2005-2014

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