This Frost & Sullivan research service titled The Middle East Military Air Market – Revenue Opportunities and Stakeholder Mapping provides qualitative as well as quantitative overview of new procurements, upgrades and support spending across the Middle East air markets. The research also identifies the key market drivers and restraints, industry challenges and opportunities, and analyses their impact. It provides major findings, strategic insights and a set of actionable recommendations for companies that wish to enter the regional military air market. In this research, Frost & Sullivan's expert analysts thoroughly examine the following: through-life support, upgrade and new purchase of military air platforms, and C4ISR, training and simulation and unmanned aerial vehicles (UAV) market analysis in the Middle East. The following countries are covered in the research: Saudi Arabia, UAE, Oman, Qatar, Kuwait and Bahrain.

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Market Overview

Growing Recognition of Air Assets as a Force Multiplier Boosts Market Prospects

Due to the increased recognition of advanced air platforms as a force multiplier, Middle Eastern Ministries of Defence (MODs) are acquiring defensive air capability in earnest. The regional military air market is accordingly set to generate revenues of $62.90 billion between 2010 and 2020. The solid rise could be attributed to the growing recognition air superiority as enabler to national security across major regional defence communities.

“The Gulf Cooperation Council (GCC) countries are moving towards an integrated air defence network to include air platforms, air defence batteries and air surveillance systems under the ‘Peninsular Shield’ initiative; but the progress has been slow,” notes the analyst of this research. “The use of networked force by the US and European forces in the Gulf War and the latest Iraq and Afghanistan wars have been a startling revelation for Middle Eastern MODs who are now keen on acquiring these capabilities.”

Companies to Identify and Fill Gaps in Current Air Defence Inventories

The new procurement surge over 2011-2015 highlights on going big-ticket purchases, particularly in Saudi Arabia and the United Arab Emirates. Political influence weighs heavily in defence acquisition decisions. As a result, most new procurements are being sourced from the United States under Foreign Military Sales (FMS). There have been efforts to balance this relationship through procurements from elsewhere, including from Europe and Russia. “The US and European arms regulations (such as ITAR and End User Monitoring) often restrain the export of sensitive defence technology and capability such as UAVs to the Middle East market,” states the analyst. This has been a particular dampener for the Western defence companies who want to be part of the development success story in the region.

Tier-1 suppliers need to focus on identifying new procurement opportunities and position their equipment accordingly. They should examine and identify lacunae in the current inventory of a particular country in terms of mission/role specific platform and strive to fill the gaps. “System integrators should consider the intangible value that the project brings to the company, provided a good-quality project and associated services are delivered,” concludes the analyst. “This has the cascading effect of winning further bids elsewhere in the region; reference to past project has a distinctive advantage in the Middle East market.”

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following countries in this research:

• Saudi Arabia
• UAE
• Oman
• Qatar
• Kuwait
• Bahrain

By Product:

• New procurement
• Upgrades
• In-service support

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