New Market Study Published: Saudi Arabia Defence & Security Report Q4 2010

New Defense market report from Business Monitor International: "Saudi Arabia Defence & Security Report Q4 2010"
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Sept. 9, 2010 - PRLog -- Saudi Arabia is expected to increase its defence spending over the coming years, driven by both internal and external security threats, and aided by the huge continuing global demand for Saudi oil, as well as record high oil prices. (Source: Defense Industry Daily, August 28 2008) Internal threats include terrorism and social tensions brought on by high unemployment, the lack of democratic freedoms, entrenched inequalities and human rights abuses. Externally, apart from Iran, the largest threat is the border clashes with northern Yemen's Houthi rebels as they battle with Yemeni government forces.

Saudi Arabia is the largest importer of defence equipment in the Middle East, and one of the largest worldwide, yet it is not a large exporter of arms. The government is addressing its deficits in the domestic defence industry in part by including technology transfers and offsets in its weapons contracts with international firms. It is developing a manufacturing base for weapons spare parts.

There is also a 'Saudisation' process, where Saudi workers with appropriate skills and experience are increasingly filling defence technology positions. However, progress is slow and the workforce is still predominately composed of foreign workers. (Source: Defense Industry Daily, August 28 2008) Saudi Arabia will be one of the strongest economies in the Middle East and North Africa region over the long term, due to the bright outlook for domestic demand and a strong oil and gas output growth potential. The economy's pace of growth will accelerate steadily over the coming five years, barring an oil price fall or production cut. Yet even if there were a downturn in oil revenues, domestic demand should still continue to grow.

The government continues to champion infrastructure spending and growth as it seeks to develop and diversify the Saudi economy, and tries to satisfy the demands placed on it by a growing population. The Infrastructure investment includes the substantial expansion of passenger and freight rail networks, as well as the multi-billion dollar upgrade of airport infrastructure. Saudi infrastructure plans are a key plank of our positive view of the Kingdom's growth prospects.

The Obama presidency has not taken a materially different stance to his predecessors on relations with Saudi Arabia, with pragmatic concerns continuing to dictate policy. Saudi Arabia and the US remain on good terms in both economic and regional political matters.

Indeed, the US is working closely with Saudi Arabia on a possible arms sale worth close to US$30bn that includes 84 Boeing F-15 fighter jets. Israel is lobbying to prevent the US signing the contract, according to Haaretz on July 4 2010. Negotiations are continuing, but it is known that the US intends to equip Saudi Arabia in order to respond militarily, especially to any Iranian threat. (Source: Haaretz, July 4 2010) For now, Saudi Arabia will maintain its role as a counterweight to Iran. To tip the scales, it would require a downturn in the fortunes of its neighbour, whether through economic deterioration or via the loss of regional allies (primarily Hizbullah and Syria).

Under our optimistic core scenario for the political scene in Saudi Arabia, we see gradual reforms to civil society and improved women's rights. Over the coming years, we should also see a rapprochement with Syria, which could weaken Iran's influence on the Middle East and boost Saudi Arabia's standing in the region. In July, King Abdullah and Syrian President Bashar al-Assad made a historic visit to Lebanon in a bid to reduce political tensions there, involving Hizbullah and the Lebanese government. (Sources: AFP and the Sydney Morning Herald, July 30 2010)

For more information or to purchase this report, go to:

Partial Table of Contents:

Executive Summary
SWOT Analysis
- Saudi Arabia Security SWOT
- Saudi Arabia Defence Industry SWOT
- Saudi Arabia Political SWOT
- Saudi Arabia Economic SWOT
- Saudi Arabia Business Environment SWOT
Global Defence Overview
- Global Hotspots
- Table: Election Timetable, H210-2011
- United States: Obama To Be Tested By Mid-Term Elections
- Latin America: Beyond Lula
- Western Europe: All About Austerity
- Central Europe: New Governments To Be Tested
- South-East Europe: Turkey's Ongoing Evolution
- Russia And The Former Soviet Union: Focus On Security
- Middle East: Ongoing Challenges
- Sub-Saharan Africa: The Election Conundrum
- Asia: The Usual Risks Prevail
- Wild Cards To Watch
Middle East Security Overview
- The Middle East In A Global Context
- Challenges And Threats To Stability And Security
- Regional Power Dynamics
- Nuclear Proliferation
- External Powers
- The Outlook For The Middle East
Security Risk Analysis
- BMI's Security Ratings
- Table: Middle East And Africa Defence And Security Ratings
- Table: Middle East And North Africa State Vulnerability To Terrorism Index
- City Terrorism Rating
- Table: BMI's Middle East And North Africa City Terrorism Index
Political Overview
- Foreign Policy
- Long-Term Political Outlook
Domestic Security Overview
- Internal Security Situation
- Table: Insurgent Groups
- External Security Situation
- Latest Developments
Armed Forces And Government Spending
- Armed Forces
- Table: Regional Armed Forces, 2010 (including conscripted)
- International Deployments
- Weapons Of Mass Destruction
Market Structure
- Arms Trade Overview
- Industry Trends And Developments
- Procurement Trends And Developments
- Procurement Background
Forecast Scenario
- Defence Outlook
- Table: Saudi Arabia's Armed Forces, 2007-2014 ('000 personnel)
- Table: Saudi Arabia's Government Defence Expenditure, 2007-2014
- Macroeconomic Outlook
- Table: Saudi Arabia - Economic Activity, 2007-2014
Company Profiles
- BAE Systems
- Thales International
Country Snapshot: Saudi Arabia Demographic Data
- Section 1: Population

Full Table of Contents is available at:

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.View more research from Business Monitor International at

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
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Tags:Security, Defence, Terrorism, Oil, Armed, Infrastructure, North, Weapons, Arms, Continuing
Industry:Defense, Government, Research
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