Synopsis
Summary
This report offers insights into market opportunities and entry strategies adopted by foreign OEMs to gain a market share in the UAE defense industry. In particular, it offers in-depth analysis of the following:
Scope
Reasons To Buy
Key Highlights
The United Arab Emirates is located on the south side of the Strait of Hormuz, a waterway through which XX% of the world’s oil is exported and which also shares a border with Iran. Territorial disputes with Iran, combined with its recent advances in ballistic missile technology, have driven the UAE to focus on the development of its own aircraft and missile systems, which accounted for XX.XX% of the country’s total defense procurements during 2004–2009. Indeed, the country’s lack of indigenous defense capabilities and trained manpower has led the UAE to seek technologically advanced, high quality defense systems from foreign OEMs, in order to provide effective protection to its strategic assets and critical infrastructure.
Currently the UAE accounts for XX.XX% of global arms imports, making it the world’s fourth-largest defense importer. Furthermore, its annual defense expenditure is expected to record a CAGR of XX.XX% during the forecast period, of which US$XX.XX billion will be spent on arms procurements. An equivalent amount will be spent on the training of its armed forces and on the maintenance, repair and overhaul (MRO) of existing defense systems. The country is also projected to spend an average of XX.XX% of its GDP on defense during the forecast period, with an average per-capita defense expenditure of US$XX.XX over this period, in accordance with its commitment to the protection of its civilians and critical infrastructure
- Top level overview of the UAE defense industry
- A breakdown of the UAE defense industry by spend pattern valued from 2005 through 2010 and forecasted from 2011 through 2016
- A breakdown of the markets by segments valued from 2005 through 2010 and forecasted from 2011 through 2016
- Details of top companies active across the UAE defense industry
- Emerging trends and opportunities in the UAE defense industry in the last 12 months
Summary
This report offers insights into market opportunities and entry strategies adopted by foreign OEMs to gain a market share in the UAE defense industry. In particular, it offers in-depth analysis of the following:
- Market opportunity and attractiveness: Detailed analysis of the current market size and growth expectations during 2011–2016, including highlights of the key drivers, to aid understanding of the growth dynamics. It also benchmarks the sector against key global markets and provides detailed understanding of emerging opportunities in specific areas.
- Procurement dynamics: Trend analysis of imports and exports, along with their implications and impact on the UAE defense industry.
- Industry structure: Five forces analysis to identify various power centers in the UAE defense industry and how these are likely to develop in the future.
- Market entry strategy: Analysis of possible ways to enter the market, along with knowledge of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
- Competitive landscape and strategic insights: Analysis of the competitive landscape of defense manufacturers in UAE. It provides an overview of the key defense companies (both domestic and foreign) along with insights such as key alliances, strategic initiatives and a brief financial analysis.
- Business environment and country risk: A range of drivers at country level, assessing business environment and country risk. It covers historical and forecast values for a range of indicators evaluating business confidence, economic performance, infrastructure quality and availability, labor force, demographics, and political and social risk.
Scope
- Analysis of defense industry market size from 2005 through 2010 and forecasts till 2016
- Analysis of defense budget allocation
- Benchmarking with key global markets
- Market opportunities
- Defense procurement dynamics
- Industry dynamics
- Market entry strategy
- Competitive landscape and strategic insights
- Business environment and country risk
Reasons To Buy
- Gain insight into the UAE defense industry with current, historic and forecast market values
- Gain insight into market opportunity and attractiveness
- Gain insight into industry procurement dynamics
- Gain insight into industry structure
- Gain insight into regulations governing the UAE defense industry and the potential market entry strategies with an expert analysis of the competitive structure
- Identify top companies of the UAE defense industry along with profiles of all those companies
Key Highlights
The United Arab Emirates is located on the south side of the Strait of Hormuz, a waterway through which XX% of the world’s oil is exported and which also shares a border with Iran. Territorial disputes with Iran, combined with its recent advances in ballistic missile technology, have driven the UAE to focus on the development of its own aircraft and missile systems, which accounted for XX.XX% of the country’s total defense procurements during 2004–2009. Indeed, the country’s lack of indigenous defense capabilities and trained manpower has led the UAE to seek technologically advanced, high quality defense systems from foreign OEMs, in order to provide effective protection to its strategic assets and critical infrastructure.
Currently the UAE accounts for XX.XX% of global arms imports, making it the world’s fourth-largest defense importer. Furthermore, its annual defense expenditure is expected to record a CAGR of XX.XX% during the forecast period, of which US$XX.XX billion will be spent on arms procurements. An equivalent amount will be spent on the training of its armed forces and on the maintenance, repair and overhaul (MRO) of existing defense systems. The country is also projected to spend an average of XX.XX% of its GDP on defense during the forecast period, with an average per-capita defense expenditure of US$XX.XX over this period, in accordance with its commitment to the protection of its civilians and critical infrastructure
1 INTRODUCTION
1.1 What is this Report About?
1.2 Definitions
1.3 Summary Methodology
1.4 ICD Research Terrorism Index
1.5 About ICD Research
1.6 About Strategic Defence Intelligence
2 EXECUTIVE SUMMARY
3 MARKET ATTRACTIVENESS AND EMERGING OPPORTUNITIES
3.1 Defense Market Size Historical and Forecast
3.1.1 The defense budget of the UAE recorded a CAGR of XX.XX% over the review period
3.1.2 Protection of critical infrastructure and territorial dispute with Iran to drive defense expenditure
3.1.3 Defense expenditure as a percentage of GDP expected to rise to XX.XX% by 2016
3.2 Analysis of Defense Budget Allocation
3.2.1 Majority of defense budget allocated for revenue expenditure
3.2.2 Expenditure on weapons acquisition to reach US$XX.XX billion by 2016
3.2.3 Revenue expenditure expected to record a CAGR of XX.XX% over the forecast period
3.3 Homeland Security Market Size and Forecast
3.3.1 UAE homeland security spending to double from 2009 to 2019
3.3.2 Investment in protection of infrastructure and expatriates is expected to drive the UAE homeland security market
3.3.3 Critical National Infrastructure Authority to drive homeland security procurement in the UAE
3.3.4 ICD Research Intelligence Terrorism Index considers the UAE a “some risk” region
3.3.5 UAE faces minimal threat from terrorists
3.4 Benchmarking with Key Global Markets
3.4.1 UAE defense budget expected to have the highest growth rate among the leading defense spenders globally
3.4.2 UAE set to continue its high defense expenditure
3.4.3 UAE spent over XX.XX% of its GDP on defense in 2010
3.4.4 UAE faces “some risk” from acts of terrorism
3.5 Market Opportunities: Key Trends and Drivers
3.5.1 UAE to invest heavily in missile defense systems
3.5.2 UAE seeks long-term solution to Airborne Early Warning and Control capability
3.5.3 Drive to enhance UAE’s air capability to result in upgrade of helicopter fleet
3.5.4 UAE domestically developing unmanned aerial vehicles technology
3.5.5 Demand for satellite communication and homeland security to drive command, control and communication market
3.5.6 Demand for surface combatants expected to increase over the forecast period
4 DEFENSE PROCUREMENT MARKET DYNAMICS
4.1 Import Market Dynamics
4.1.1 Limitations of the domestic defense industry to encourage arms imports
4.1.2 Over the review period, the UAE was the world’s fourth-largest arms importer
4.1.3 Aircraft account for the majority of the UAE’s defense imports
4.1.4 US to continue to be major arms suppliers to the UAE
4.2 Export Market Dynamics
4.2.1 The UAE has minimal defense exports
5 INDUSTRY DYNAMICS
5.1 Five Forces Analysis
5.1.1 Bargaining power of supplier: low to medium
5.1.2 Bargaining power of buyer: high
5.1.3 Barrier to entry: medium to high
5.1.4 Intensity of rivalry: high
5.1.5 Threat of Substitution: low to medium
6 MARKET ENTRY STRATEGY
6.1 Market Regulation
6.1.1 Defense deals are settled through direct negotiation or competitive bidding
6.1.2 Foreign OEMs prefer indirect offsets to meet the obligations associated with defense deals
6.2 Market Entry Route
6.2.1 Foreign OEMs use proxy representatives to enter the market
6.2.2 Defense expositions hosted by the UAE serve as an entry route for foreign OEMs
6.3 Key Challenges
6.3.1 Complying with the UAE’s stringent offset requirements a concern for OEMs
6.3.2 UAE demands technology transfer in defense deals
7 COMPETITIVE LANDSCAPE AND STRATEGIC INSIGHTS
7.1 Competitive landscape Overview
7.1.1 A diverse range of foreign OEMs dominate the UAE defense sector
7.1.2 Indigenous ship building drives domestic market growth
7.2 Key Foreign Companies
7.2.1 Lockheed Martin – overview
7.2.2 Lockheed Martin – Major Products and Services
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 BAE Systems Plc – overview
7.2.8 BAE Systems Plc – Major Products and Services
7.2.9 BAE Systems Plc – recent announcements and strategic initiatives
7.2.10 BAE Systems Plc – alliances
7.2.11 BAE Systems Plc – recent contract wins
7.2.12 BAE Systems Plc – financial analysis
7.2.13 Raytheon Company – overview
7.2.14 Raytheon Company – Major Products and Services
7.2.15 Raytheon Company – recent announcements and strategic initiatives
7.2.16 Raytheon Company – alliances
7.2.17 Raytheon Company – recent contract wins
7.2.18 Raytheon Company – financial analysis
7.2.19 Rolls-Royce Plc – overview
7.2.20 Rolls-Royce Plc – Major Products and Services
7.2.21 Rolls-Royce Plc – recent announcements and strategic initiatives
7.2.22 Rolls-Royce Plc – alliances
7.2.23 Rolls-Royce Plc – recent contract wins
7.2.24 Rolls-Royce Plc – financial analysis
7.2.25 Northrop Grumman Corporation – overview
7.2.26 Northrop Grumman Corporation – Major Products and Services
7.2.27 Northrop Grumman Corporation – recent announcements and strategic initiatives
7.2.28 Northrop Grumman Corporation – alliances
7.2.29 Northrop Grumman Corporation – recent contract wins
7.2.30 Northrop Grumman Corporation – financial analysis
7.2.31 Thales – overview
7.2.32 Thales – Major Products and Services
7.2.33 Thales – recent announcements and strategic initiatives
7.2.34 Thales – alliances
7.2.35 Thales – recent contract wins
7.2.36 Thales – financial analysis
7.2.37 The Boeing Company – overview
7.2.38 The Boeing Company – Major Products and Services
7.2.39 The Boeing Company – recent announcements and strategic initiatives
7.2.40 The Boeing Company – alliances
7.2.41 The Boeing Company – recent contract wins
7.2.42 The Boeing Company – financial analysis
7.3 Key Public Sector Companies
7.3.1 Abu Dhabi Ship Building – overview
7.3.2 Abu Dhabi Ship Building – Major Products and Services
7.3.3 Abu Dhabi Ship Building – recent announcements and strategic initiatives
7.3.4 Abu Dhabi Ship Building – alliances
7.3.5 Abu Dhabi Ship Building – recent contract wins
7.3.6 Abu Dhabi Ship Building – financial analysis
7.3.7 Gulf Logistics and Naval Support – overview
7.3.8 Gulf Logistics and Naval Support – Major Products and Services
7.3.9 Gulf Logistics and Naval Support – recent announcements and strategic initiatives
7.3.10 Gulf Logistics and Naval Support – alliances
7.3.11 Gulf Logistics and Naval Support – recent contract wins
7.3.12 Gulf Logistics and Naval Support – financial analysis
7.3.13 Abu Dhabi Systems Integration – overview
7.3.14 Abu Dhabi Systems Integration – Major Products and Services
7.3.15 Abu Dhabi Systems Integration – recent announcements and strategic initiatives
7.3.16 Abu Dhabi Systems Integration – alliances
7.3.17 Abu Dhabi Systems Integration – recent contract wins
7.3.18 Abu Dhabi Systems Integration – financial analysis
8 BUSINESS ENVIRONMENT AND COUNTRY RISK
8.1 Business Confidence
8.1.1 Business confidence index
8.1.2 Market capitalization trend – Abu Dhabi Stock Exchange, UAE
8.1.3 Market capitalization trend – Dubai Financial Market, UAE
8.1.4 Deployment of credit by sector
8.2 Economic Performance
8.2.1 GDP at constant prices
8.2.2 GDP per capita at constant prices
8.2.3 GDP at current prices
8.2.4 GDP per capita at current prices
8.2.5 GDP split by key segments
8.2.6 Agriculture – agriculture output value at current prices (local currency)
8.2.7 Agriculture – agriculture output value at current prices (US$)
8.2.8 Agriculture – agriculture output at current prices as percentage of GDP
8.2.9 Manufacturing – manufacturing output at current prices (local currency)
8.2.10 Manufacturing – manufacturing output at current prices (US$)
8.2.11 Manufacturing – manufacturing output at current prices as percentage of GDP
8.2.12 Manufacturing – mining, manufacturing and utilities at current prices (local currency)
8.2.13 Manufacturing – mining, manufacturing and utilities at current prices (US$)
8.2.14 Manufacturing – mining, manufacturing and utilities at current prices as percentage of GDP
8.2.15 Construction – construction output at current prices (local currency)
8.2.16 Construction – construction output at current prices (US$)
8.2.17 Construction – construction output at current prices as a percentage of GDP
8.2.18 Industry – crude steel production
8.2.19 Industry - crude oil consumption
8.2.20 Inflation rate
8.2.21 Fiscal deficit as a percentage of GDP
8.2.22 Exports as a percentage of GDP
8.2.23 Imports as a percentage of GDP
8.2.24 Exports growth
8.2.25 Imports growth
8.2.26 External debt as percentage of GDP
8.2.27 Exchange rate US$-AED (annual average)
8.2.28 Exchange rate US$-AED (end of fiscal)
8.2.29 Debt service ratio
8.3 Infrastructure Quality and Availability
8.3.1 Transport – automotive component exports trend
8.3.2 Transport – automotive product imports trend
8.3.3 Transport – passenger car penetration
8.3.4 Utilities – total installed capacity for electricity generation
8.3.5 Utilities – installed capacity for conventional thermal electricity generation
8.3.6 Utilities – electricity production
8.3.7 Utilities – electric power consumption
8.3.8 Healthcare – healthcare expenditure
8.3.9 Healthcare – healthcare expenditure as percentage of GDP
8.3.10 Healthcare – healthcare expenditure per capita
8.3.11 Communication – total internet subscribers
8.3.12 Communication – broadband internet subscribers
8.3.13 Communication – personal computer penetration
8.3.14 Communication – mobile phone penetration rate
8.4 Labor Force
8.4.1 Labor force count
8.4.2 Unemployment rate
8.5 Demographics
8.5.1 Annual disposable income
8.5.2 Annual per-capita disposable income
8.5.3 Annual consumer expenditure on food
8.5.4 Annual per-capita consumer expenditure on food
8.5.5 Urban and rural population
8.5.6 Females as percentage of population
8.5.7 Males as percentage of population
8.5.8 Mean age of population
8.5.9 Median age of population
8.5.10 Population density
8.5.11 Age distribution – total population
8.5.12 Age distribution – male population
8.5.13 Age distribution – female population
8.5.14 Number of households
8.6 Political and Social Risk
8.6.1 Political stability
8.6.2 Terrorism index
8.6.3 Transparency index
9 APPENDIX
9.1 Methodology
9.2 Contact us
9.3 About ICD Research
9.4 Disclaimer
LIST OF TABLES
Table 1: UAE Defense Expenditure (2005–2010)
Table 2: UAE Defense Expenditure (2011–2016)
Table 3: UAE Defense Expenditure as % of GDP (2005–2010)
Table 4: UAE Defense Expenditure as % of GDP (2011–2016)
Table 5: UAE Defense budget Split between Capital and Revenue Expenditure (2005–2010)
Table 6: UAE Defense budget Split between Capital and Revenue Expenditure (2011–2016)
Table 7: UAE Capital Expenditure (2005–2010)
Table 8: UAE Capital Expenditure (2011–2016)
Table 9: UAE Revenue Expenditure (2005–2010)
Table 10: UAE Revenue Expenditure (2011–2016)
Table 11: Benchmarking with Key Markets – 2005–2010 vs 2011–2016
Table 12: Benchmarking with World’s Largest Defense Spenders – 2010 and 2016
Table 13: ICD Research Terrorism Index
Table 14: UAE – Offset Guidelines and Agreements
Table 15: Key Foreign Players and Operations in the UAE Defense Sector
Table 16: Lockheed Martin – Major Products & Services
Table 17: Lockheed Martin – Alliances
Table 18: Lockheed Martin – recent contract wins
Table 19: BAE Systems Plc – Major Products & Services
Table 20: BAE Systems Plc – Alliances
Table 21: BAE Systems Plc – recent contract wins
Table 22: Raytheon Company – Major Products & Services
Table 23: Raytheon Company – Alliances
Table 24: Raytheon Company – recent contract wins
Table 25: Rolls-Royce Plc – Major Products & Services
Table 26: Rolls-Royce Plc – Alliances
Table 27: Rolls-Royce Plc – recent contract wins
Table 28: Northrop Grumman Corporation – Major Products & Services
Table 29: Northrop Grumman Corporation – Alliances
Table 30: Thales – Major Products & Services
Table 31: Thales – Alliances
Table 32: Thales – recent contract wins
Table 33: The Boeing Company – Major Products & Services
Table 34: The Boeing Company – recent contract wins
Table 35: Abu Dhabi Ship Building – Major Products & Services
Table 36: Abu Dhabi Ship Building – Alliances
Table 37: Abu Dhabi Ship Building – recent contract wins
Table 38: Gulf Logistics and Naval Support – Major Products & Services
Table 39: Abu Dhabi Systems Integration – Major Products & Services
LIST OF FIGURES
Figure 1: UAE Defense Expenditure (2005–2010)
Figure 2: UAE Defense Expenditure (2011–2016)
Figure 3: UAE Defense Expenditure as % of GDP (2011–2016)
Figure 4: UAE Defense budget Split between Capital and Revenue Expenditure (2005–2010)
Figure 5: UAE Defense budget Split between Capital and Revenue Expenditure (2011–2016)
Figure 6: UAE Capital Expenditure (2005–2010)
Figure 7: UAE Capital Expenditure (2011–2016)
Figure 8: UAE Revenue Expenditure (2005–2010)
Figure 9: UAE Revenue Expenditure (2011–2016)
Figure 10: ICD Research Terrorism Heat Map
Figure 11: Benchmarking with Key Markets – (2005–2010) vs (2011–2016)
Figure 12: Benchmarking with World’s Largest Defense Spenders – 2010 and 2016
Figure 13: Benchmarking with Large Defense Spenders as % of GDP – 2010
Figure 14: UAE Defense imports TIV value (US$ Million), (2005–2010)
Figure 15: UAE Defense Imports by Category (%), (2005–2010) and 2010 (TIV values)
Figure 16: UAE Defense Imports by Region (%), (2005–2010) and 2010
Figure 17: Industry Dynamics – Porter’s Five Forces Analysis
Figure 18: Abu Dhabi Ship Building – Revenue Trend Analysis (AED Million), 2007–2010
Figure 19: Abu Dhabi Ship Building – Operating Profit (AED Million), 2007–2010
Figure 20: Abu Dhabi Ship Building – Net Profit Trend Analysis (AED Million), 2007–2010
Figure 21: UAE Business Confidence Index, Q3 2009—Q1 2010
Figure 22: Abu Dhabi Stock Exchange Market Capitalization (US$ Billion), 2005–2010
Figure 23: Dubai Financial Market, Market Capitalization (US$ Billion), 2005–2010
Figure 24: UAE Deployment of Credit by Sector (US$ billion), 2005–2010
Figure 25: UAE GDP Value at Constant Prices (US$ Billion), 2005–2016
Figure 26: UAE GDP per Capita at Constant Prices (US$), 2005–2016
Figure 27: UAE GDP at Current Prices (US$ Billion), 2005–2016
Figure 28: UAE GDP per Capita at Current Prices (US$), 2005–2016
Figure 29: UAE GDP Split by Key Segments (%), 2005 vs. 2010
Figure 30: UAE Agriculture Output Value at Current Prices (AED Billion), 2005–2016
Figure 31: UAE Agriculture Output Value at Current Prices (US$ Billion), 2005–2016
Figure 32: UAE Agriculture Output at Current Prices (% of GDP), 2005–2016
Figure 33: UAE Manufacturing Output at Current Prices (AED Billion), 2005–2016
Figure 34: UAE Manufacturing Output at Current Prices (US$ Billion), 2005–2016
Figure 35: UAE Manufacturing Output at Current Prices (% of GDP), 2005–2016
Figure 36: UAE Mining, Manufacturing and Utilities Output at Current Prices (AED Billion) 2005–2016
Figure 37: UAE Mining, Manufacturing and Utilities Output at Current Prices (US$ Billion), 2005–2016
Figure 38: UAE Mining, Manufacturing and Utilities Output at Current Prices (% of GDP), 2005–2016
Figure 39: UAE Construction Output at Current Prices (AED Billion), 2005–2016
Figure 40: UAE Construction Output at Current Prices (US$ Billion), 2005–2016
Figure 41: UAE Construction Output at Current Prices (% of GDP), 2005–2016
Figure 42: UAE Crude Steel Production (thousand metric Tons), 2005–2016
Figure 43: UAE Crude Oil Consumption (Million Tons), 2005–2016
Figure 44: UAE Inflation Rate (%), 2005–2016
Figure 45: UAE Fiscal Deficit (% of GDP), 2005–2016
Figure 46: UAE Exports (% of GDP), 2005–2016
Figure 47: UAE Imports (% of GDP), 2005–2016
Figure 48: UAE Exports Growth (%), 2005–2016
Figure 49: UAE Imports Growth (%), 2005–2016
Figure 50: UAE External Debt (% of GDP) 2005–2010
Figure 51: UAE Exchange Rate US$-AED (Annual Average), 2005–2010
Figure 52: UAE Exchange Rate (End of Fiscal), 2005–2010
Figure 53: UAE Debt Service Ratio, 2005–2010
Figure 54: UAE Automotive Component Exports (US$ Billion), 2005–2016
Figure 55: UAE Automotive Component Imports (US$ Billion), 2005–2016
Figure 56: UAE Passenger Car Penetration (per 1000 people), 2005–2016
Figure 57: UAE Total Installed Capacity for Electricity Generation (Million Kilowatts), 2005–2016
Figure 58: UAE Installed Capacity for Conventional Thermal Electricity Generation (Million Kilowatts), 2005–2016
Figure 59: UAE Electricity Production (Billion Kilowatt Hours), 2005–2016
Figure 60: UAE Electric Power Consumption (Billion Kilowatt Hours), 2005–2016
Figure 61: UAE Healthcare Expenditure (US$ Billion), 2005–2016
Figure 62: UAE Healthcare Expenditure (% of GDP), 2005–2016
Figure 63: UAE per Capita Healthcare Expenditure (US$), 2005–2016
Figure 64: UAE Internet Subscribers (Million), 2005–2016
Figure 65: UAE Broadband Internet Subscribers (Million), 2005–2016
Figure 66: UAE Personal Computer Usage (per 100 people), 2005–2016
Figure 67: UAE Mobile Phone Penetration (%) 2005–2016
Figure 68: UAE Size of Labor Force in 15–59 Age Group (million), 2005–2016
Figure 69: UAE Unemployment Rate (%), 2005–2016
Figure 70: UAE Annual Disposable Income (US$ Billion), 2005–2016
Figure 71: UAE Annual per-Capita Disposable Income (US$), 2005–2016
Figure 72: UAE Consumer Expenditure on Food (US$ Billion), 2005–2016
Figure 73: UAE Annual per-Capita Consumer Expenditure on Food (US$), 2005–2016
Figure 74: UAE Urban and Rural Population (% of Total Population), 2005–2016
Figure 75: UAE Females (% of Population), 2005–2016
Figure 76: UAE Males (% of Population), 2005–2016
Figure 77: UAE Mean Age of Population, 2005–2016
Figure 78: UAE Median Age of Population, 2005–2016
Figure 79: UAE Population Density (People per Square Kilometer), 2005–2016
Figure 80: UAE Age Distribution (% of Population), 2005–2016
Figure 81: UAE Age Distribution (% of Male Population), 2005–2016
Figure 82: UAE Age Distribution (% of Female Population), 2005–2016
Figure 83: UAE Number of Households (Million), 2005–2016
Figure 84: Global Terrorism Heat Map, 2010
Figure 85: UAE Transparency Index, the review period
COMPANIES MENTIONED
Lockheed Martin, BAE Systems, Raytheon Company, Rolls-Royce, Northrop Grumman Corporation, Thales, The Boeing Company, Abu Dhabi Ship Building, Gulf Logistics and Naval Support, Abu Dhabi Systems Integration
1.1 What is this Report About?
1.2 Definitions
1.3 Summary Methodology
1.4 ICD Research Terrorism Index
1.5 About ICD Research
1.6 About Strategic Defence Intelligence
2 EXECUTIVE SUMMARY
3 MARKET ATTRACTIVENESS AND EMERGING OPPORTUNITIES
3.1 Defense Market Size Historical and Forecast
3.1.1 The defense budget of the UAE recorded a CAGR of XX.XX% over the review period
3.1.2 Protection of critical infrastructure and territorial dispute with Iran to drive defense expenditure
3.1.3 Defense expenditure as a percentage of GDP expected to rise to XX.XX% by 2016
3.2 Analysis of Defense Budget Allocation
3.2.1 Majority of defense budget allocated for revenue expenditure
3.2.2 Expenditure on weapons acquisition to reach US$XX.XX billion by 2016
3.2.3 Revenue expenditure expected to record a CAGR of XX.XX% over the forecast period
3.3 Homeland Security Market Size and Forecast
3.3.1 UAE homeland security spending to double from 2009 to 2019
3.3.2 Investment in protection of infrastructure and expatriates is expected to drive the UAE homeland security market
3.3.3 Critical National Infrastructure Authority to drive homeland security procurement in the UAE
3.3.4 ICD Research Intelligence Terrorism Index considers the UAE a “some risk” region
3.3.5 UAE faces minimal threat from terrorists
3.4 Benchmarking with Key Global Markets
3.4.1 UAE defense budget expected to have the highest growth rate among the leading defense spenders globally
3.4.2 UAE set to continue its high defense expenditure
3.4.3 UAE spent over XX.XX% of its GDP on defense in 2010
3.4.4 UAE faces “some risk” from acts of terrorism
3.5 Market Opportunities: Key Trends and Drivers
3.5.1 UAE to invest heavily in missile defense systems
3.5.2 UAE seeks long-term solution to Airborne Early Warning and Control capability
3.5.3 Drive to enhance UAE’s air capability to result in upgrade of helicopter fleet
3.5.4 UAE domestically developing unmanned aerial vehicles technology
3.5.5 Demand for satellite communication and homeland security to drive command, control and communication market
3.5.6 Demand for surface combatants expected to increase over the forecast period
4 DEFENSE PROCUREMENT MARKET DYNAMICS
4.1 Import Market Dynamics
4.1.1 Limitations of the domestic defense industry to encourage arms imports
4.1.2 Over the review period, the UAE was the world’s fourth-largest arms importer
4.1.3 Aircraft account for the majority of the UAE’s defense imports
4.1.4 US to continue to be major arms suppliers to the UAE
4.2 Export Market Dynamics
4.2.1 The UAE has minimal defense exports
5 INDUSTRY DYNAMICS
5.1 Five Forces Analysis
5.1.1 Bargaining power of supplier: low to medium
5.1.2 Bargaining power of buyer: high
5.1.3 Barrier to entry: medium to high
5.1.4 Intensity of rivalry: high
5.1.5 Threat of Substitution: low to medium
6 MARKET ENTRY STRATEGY
6.1 Market Regulation
6.1.1 Defense deals are settled through direct negotiation or competitive bidding
6.1.2 Foreign OEMs prefer indirect offsets to meet the obligations associated with defense deals
6.2 Market Entry Route
6.2.1 Foreign OEMs use proxy representatives to enter the market
6.2.2 Defense expositions hosted by the UAE serve as an entry route for foreign OEMs
6.3 Key Challenges
6.3.1 Complying with the UAE’s stringent offset requirements a concern for OEMs
6.3.2 UAE demands technology transfer in defense deals
7 COMPETITIVE LANDSCAPE AND STRATEGIC INSIGHTS
7.1 Competitive landscape Overview
7.1.1 A diverse range of foreign OEMs dominate the UAE defense sector
7.1.2 Indigenous ship building drives domestic market growth
7.2 Key Foreign Companies
7.2.1 Lockheed Martin – overview
7.2.2 Lockheed Martin – Major Products and Services
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 BAE Systems Plc – overview
7.2.8 BAE Systems Plc – Major Products and Services
7.2.9 BAE Systems Plc – recent announcements and strategic initiatives
7.2.10 BAE Systems Plc – alliances
7.2.11 BAE Systems Plc – recent contract wins
7.2.12 BAE Systems Plc – financial analysis
7.2.13 Raytheon Company – overview
7.2.14 Raytheon Company – Major Products and Services
7.2.15 Raytheon Company – recent announcements and strategic initiatives
7.2.16 Raytheon Company – alliances
7.2.17 Raytheon Company – recent contract wins
7.2.18 Raytheon Company – financial analysis
7.2.19 Rolls-Royce Plc – overview
7.2.20 Rolls-Royce Plc – Major Products and Services
7.2.21 Rolls-Royce Plc – recent announcements and strategic initiatives
7.2.22 Rolls-Royce Plc – alliances
7.2.23 Rolls-Royce Plc – recent contract wins
7.2.24 Rolls-Royce Plc – financial analysis
7.2.25 Northrop Grumman Corporation – overview
7.2.26 Northrop Grumman Corporation – Major Products and Services
7.2.27 Northrop Grumman Corporation – recent announcements and strategic initiatives
7.2.28 Northrop Grumman Corporation – alliances
7.2.29 Northrop Grumman Corporation – recent contract wins
7.2.30 Northrop Grumman Corporation – financial analysis
7.2.31 Thales – overview
7.2.32 Thales – Major Products and Services
7.2.33 Thales – recent announcements and strategic initiatives
7.2.34 Thales – alliances
7.2.35 Thales – recent contract wins
7.2.36 Thales – financial analysis
7.2.37 The Boeing Company – overview
7.2.38 The Boeing Company – Major Products and Services
7.2.39 The Boeing Company – recent announcements and strategic initiatives
7.2.40 The Boeing Company – alliances
7.2.41 The Boeing Company – recent contract wins
7.2.42 The Boeing Company – financial analysis
7.3 Key Public Sector Companies
7.3.1 Abu Dhabi Ship Building – overview
7.3.2 Abu Dhabi Ship Building – Major Products and Services
7.3.3 Abu Dhabi Ship Building – recent announcements and strategic initiatives
7.3.4 Abu Dhabi Ship Building – alliances
7.3.5 Abu Dhabi Ship Building – recent contract wins
7.3.6 Abu Dhabi Ship Building – financial analysis
7.3.7 Gulf Logistics and Naval Support – overview
7.3.8 Gulf Logistics and Naval Support – Major Products and Services
7.3.9 Gulf Logistics and Naval Support – recent announcements and strategic initiatives
7.3.10 Gulf Logistics and Naval Support – alliances
7.3.11 Gulf Logistics and Naval Support – recent contract wins
7.3.12 Gulf Logistics and Naval Support – financial analysis
7.3.13 Abu Dhabi Systems Integration – overview
7.3.14 Abu Dhabi Systems Integration – Major Products and Services
7.3.15 Abu Dhabi Systems Integration – recent announcements and strategic initiatives
7.3.16 Abu Dhabi Systems Integration – alliances
7.3.17 Abu Dhabi Systems Integration – recent contract wins
7.3.18 Abu Dhabi Systems Integration – financial analysis
8 BUSINESS ENVIRONMENT AND COUNTRY RISK
8.1 Business Confidence
8.1.1 Business confidence index
8.1.2 Market capitalization trend – Abu Dhabi Stock Exchange, UAE
8.1.3 Market capitalization trend – Dubai Financial Market, UAE
8.1.4 Deployment of credit by sector
8.2 Economic Performance
8.2.1 GDP at constant prices
8.2.2 GDP per capita at constant prices
8.2.3 GDP at current prices
8.2.4 GDP per capita at current prices
8.2.5 GDP split by key segments
8.2.6 Agriculture – agriculture output value at current prices (local currency)
8.2.7 Agriculture – agriculture output value at current prices (US$)
8.2.8 Agriculture – agriculture output at current prices as percentage of GDP
8.2.9 Manufacturing – manufacturing output at current prices (local currency)
8.2.10 Manufacturing – manufacturing output at current prices (US$)
8.2.11 Manufacturing – manufacturing output at current prices as percentage of GDP
8.2.12 Manufacturing – mining, manufacturing and utilities at current prices (local currency)
8.2.13 Manufacturing – mining, manufacturing and utilities at current prices (US$)
8.2.14 Manufacturing – mining, manufacturing and utilities at current prices as percentage of GDP
8.2.15 Construction – construction output at current prices (local currency)
8.2.16 Construction – construction output at current prices (US$)
8.2.17 Construction – construction output at current prices as a percentage of GDP
8.2.18 Industry – crude steel production
8.2.19 Industry - crude oil consumption
8.2.20 Inflation rate
8.2.21 Fiscal deficit as a percentage of GDP
8.2.22 Exports as a percentage of GDP
8.2.23 Imports as a percentage of GDP
8.2.24 Exports growth
8.2.25 Imports growth
8.2.26 External debt as percentage of GDP
8.2.27 Exchange rate US$-AED (annual average)
8.2.28 Exchange rate US$-AED (end of fiscal)
8.2.29 Debt service ratio
8.3 Infrastructure Quality and Availability
8.3.1 Transport – automotive component exports trend
8.3.2 Transport – automotive product imports trend
8.3.3 Transport – passenger car penetration
8.3.4 Utilities – total installed capacity for electricity generation
8.3.5 Utilities – installed capacity for conventional thermal electricity generation
8.3.6 Utilities – electricity production
8.3.7 Utilities – electric power consumption
8.3.8 Healthcare – healthcare expenditure
8.3.9 Healthcare – healthcare expenditure as percentage of GDP
8.3.10 Healthcare – healthcare expenditure per capita
8.3.11 Communication – total internet subscribers
8.3.12 Communication – broadband internet subscribers
8.3.13 Communication – personal computer penetration
8.3.14 Communication – mobile phone penetration rate
8.4 Labor Force
8.4.1 Labor force count
8.4.2 Unemployment rate
8.5 Demographics
8.5.1 Annual disposable income
8.5.2 Annual per-capita disposable income
8.5.3 Annual consumer expenditure on food
8.5.4 Annual per-capita consumer expenditure on food
8.5.5 Urban and rural population
8.5.6 Females as percentage of population
8.5.7 Males as percentage of population
8.5.8 Mean age of population
8.5.9 Median age of population
8.5.10 Population density
8.5.11 Age distribution – total population
8.5.12 Age distribution – male population
8.5.13 Age distribution – female population
8.5.14 Number of households
8.6 Political and Social Risk
8.6.1 Political stability
8.6.2 Terrorism index
8.6.3 Transparency index
9 APPENDIX
9.1 Methodology
9.2 Contact us
9.3 About ICD Research
9.4 Disclaimer
LIST OF TABLES
Table 1: UAE Defense Expenditure (2005–2010)
Table 2: UAE Defense Expenditure (2011–2016)
Table 3: UAE Defense Expenditure as % of GDP (2005–2010)
Table 4: UAE Defense Expenditure as % of GDP (2011–2016)
Table 5: UAE Defense budget Split between Capital and Revenue Expenditure (2005–2010)
Table 6: UAE Defense budget Split between Capital and Revenue Expenditure (2011–2016)
Table 7: UAE Capital Expenditure (2005–2010)
Table 8: UAE Capital Expenditure (2011–2016)
Table 9: UAE Revenue Expenditure (2005–2010)
Table 10: UAE Revenue Expenditure (2011–2016)
Table 11: Benchmarking with Key Markets – 2005–2010 vs 2011–2016
Table 12: Benchmarking with World’s Largest Defense Spenders – 2010 and 2016
Table 13: ICD Research Terrorism Index
Table 14: UAE – Offset Guidelines and Agreements
Table 15: Key Foreign Players and Operations in the UAE Defense Sector
Table 16: Lockheed Martin – Major Products & Services
Table 17: Lockheed Martin – Alliances
Table 18: Lockheed Martin – recent contract wins
Table 19: BAE Systems Plc – Major Products & Services
Table 20: BAE Systems Plc – Alliances
Table 21: BAE Systems Plc – recent contract wins
Table 22: Raytheon Company – Major Products & Services
Table 23: Raytheon Company – Alliances
Table 24: Raytheon Company – recent contract wins
Table 25: Rolls-Royce Plc – Major Products & Services
Table 26: Rolls-Royce Plc – Alliances
Table 27: Rolls-Royce Plc – recent contract wins
Table 28: Northrop Grumman Corporation – Major Products & Services
Table 29: Northrop Grumman Corporation – Alliances
Table 30: Thales – Major Products & Services
Table 31: Thales – Alliances
Table 32: Thales – recent contract wins
Table 33: The Boeing Company – Major Products & Services
Table 34: The Boeing Company – recent contract wins
Table 35: Abu Dhabi Ship Building – Major Products & Services
Table 36: Abu Dhabi Ship Building – Alliances
Table 37: Abu Dhabi Ship Building – recent contract wins
Table 38: Gulf Logistics and Naval Support – Major Products & Services
Table 39: Abu Dhabi Systems Integration – Major Products & Services
LIST OF FIGURES
Figure 1: UAE Defense Expenditure (2005–2010)
Figure 2: UAE Defense Expenditure (2011–2016)
Figure 3: UAE Defense Expenditure as % of GDP (2011–2016)
Figure 4: UAE Defense budget Split between Capital and Revenue Expenditure (2005–2010)
Figure 5: UAE Defense budget Split between Capital and Revenue Expenditure (2011–2016)
Figure 6: UAE Capital Expenditure (2005–2010)
Figure 7: UAE Capital Expenditure (2011–2016)
Figure 8: UAE Revenue Expenditure (2005–2010)
Figure 9: UAE Revenue Expenditure (2011–2016)
Figure 10: ICD Research Terrorism Heat Map
Figure 11: Benchmarking with Key Markets – (2005–2010) vs (2011–2016)
Figure 12: Benchmarking with World’s Largest Defense Spenders – 2010 and 2016
Figure 13: Benchmarking with Large Defense Spenders as % of GDP – 2010
Figure 14: UAE Defense imports TIV value (US$ Million), (2005–2010)
Figure 15: UAE Defense Imports by Category (%), (2005–2010) and 2010 (TIV values)
Figure 16: UAE Defense Imports by Region (%), (2005–2010) and 2010
Figure 17: Industry Dynamics – Porter’s Five Forces Analysis
Figure 18: Abu Dhabi Ship Building – Revenue Trend Analysis (AED Million), 2007–2010
Figure 19: Abu Dhabi Ship Building – Operating Profit (AED Million), 2007–2010
Figure 20: Abu Dhabi Ship Building – Net Profit Trend Analysis (AED Million), 2007–2010
Figure 21: UAE Business Confidence Index, Q3 2009—Q1 2010
Figure 22: Abu Dhabi Stock Exchange Market Capitalization (US$ Billion), 2005–2010
Figure 23: Dubai Financial Market, Market Capitalization (US$ Billion), 2005–2010
Figure 24: UAE Deployment of Credit by Sector (US$ billion), 2005–2010
Figure 25: UAE GDP Value at Constant Prices (US$ Billion), 2005–2016
Figure 26: UAE GDP per Capita at Constant Prices (US$), 2005–2016
Figure 27: UAE GDP at Current Prices (US$ Billion), 2005–2016
Figure 28: UAE GDP per Capita at Current Prices (US$), 2005–2016
Figure 29: UAE GDP Split by Key Segments (%), 2005 vs. 2010
Figure 30: UAE Agriculture Output Value at Current Prices (AED Billion), 2005–2016
Figure 31: UAE Agriculture Output Value at Current Prices (US$ Billion), 2005–2016
Figure 32: UAE Agriculture Output at Current Prices (% of GDP), 2005–2016
Figure 33: UAE Manufacturing Output at Current Prices (AED Billion), 2005–2016
Figure 34: UAE Manufacturing Output at Current Prices (US$ Billion), 2005–2016
Figure 35: UAE Manufacturing Output at Current Prices (% of GDP), 2005–2016
Figure 36: UAE Mining, Manufacturing and Utilities Output at Current Prices (AED Billion) 2005–2016
Figure 37: UAE Mining, Manufacturing and Utilities Output at Current Prices (US$ Billion), 2005–2016
Figure 38: UAE Mining, Manufacturing and Utilities Output at Current Prices (% of GDP), 2005–2016
Figure 39: UAE Construction Output at Current Prices (AED Billion), 2005–2016
Figure 40: UAE Construction Output at Current Prices (US$ Billion), 2005–2016
Figure 41: UAE Construction Output at Current Prices (% of GDP), 2005–2016
Figure 42: UAE Crude Steel Production (thousand metric Tons), 2005–2016
Figure 43: UAE Crude Oil Consumption (Million Tons), 2005–2016
Figure 44: UAE Inflation Rate (%), 2005–2016
Figure 45: UAE Fiscal Deficit (% of GDP), 2005–2016
Figure 46: UAE Exports (% of GDP), 2005–2016
Figure 47: UAE Imports (% of GDP), 2005–2016
Figure 48: UAE Exports Growth (%), 2005–2016
Figure 49: UAE Imports Growth (%), 2005–2016
Figure 50: UAE External Debt (% of GDP) 2005–2010
Figure 51: UAE Exchange Rate US$-AED (Annual Average), 2005–2010
Figure 52: UAE Exchange Rate (End of Fiscal), 2005–2010
Figure 53: UAE Debt Service Ratio, 2005–2010
Figure 54: UAE Automotive Component Exports (US$ Billion), 2005–2016
Figure 55: UAE Automotive Component Imports (US$ Billion), 2005–2016
Figure 56: UAE Passenger Car Penetration (per 1000 people), 2005–2016
Figure 57: UAE Total Installed Capacity for Electricity Generation (Million Kilowatts), 2005–2016
Figure 58: UAE Installed Capacity for Conventional Thermal Electricity Generation (Million Kilowatts), 2005–2016
Figure 59: UAE Electricity Production (Billion Kilowatt Hours), 2005–2016
Figure 60: UAE Electric Power Consumption (Billion Kilowatt Hours), 2005–2016
Figure 61: UAE Healthcare Expenditure (US$ Billion), 2005–2016
Figure 62: UAE Healthcare Expenditure (% of GDP), 2005–2016
Figure 63: UAE per Capita Healthcare Expenditure (US$), 2005–2016
Figure 64: UAE Internet Subscribers (Million), 2005–2016
Figure 65: UAE Broadband Internet Subscribers (Million), 2005–2016
Figure 66: UAE Personal Computer Usage (per 100 people), 2005–2016
Figure 67: UAE Mobile Phone Penetration (%) 2005–2016
Figure 68: UAE Size of Labor Force in 15–59 Age Group (million), 2005–2016
Figure 69: UAE Unemployment Rate (%), 2005–2016
Figure 70: UAE Annual Disposable Income (US$ Billion), 2005–2016
Figure 71: UAE Annual per-Capita Disposable Income (US$), 2005–2016
Figure 72: UAE Consumer Expenditure on Food (US$ Billion), 2005–2016
Figure 73: UAE Annual per-Capita Consumer Expenditure on Food (US$), 2005–2016
Figure 74: UAE Urban and Rural Population (% of Total Population), 2005–2016
Figure 75: UAE Females (% of Population), 2005–2016
Figure 76: UAE Males (% of Population), 2005–2016
Figure 77: UAE Mean Age of Population, 2005–2016
Figure 78: UAE Median Age of Population, 2005–2016
Figure 79: UAE Population Density (People per Square Kilometer), 2005–2016
Figure 80: UAE Age Distribution (% of Population), 2005–2016
Figure 81: UAE Age Distribution (% of Male Population), 2005–2016
Figure 82: UAE Age Distribution (% of Female Population), 2005–2016
Figure 83: UAE Number of Households (Million), 2005–2016
Figure 84: Global Terrorism Heat Map, 2010
Figure 85: UAE Transparency Index, the review period
COMPANIES MENTIONED
Lockheed Martin, BAE Systems, Raytheon Company, Rolls-Royce, Northrop Grumman Corporation, Thales, The Boeing Company, Abu Dhabi Ship Building, Gulf Logistics and Naval Support, Abu Dhabi Systems Integration
