Rockville, MD (PRWEB) October 15, 2013
The Future of the Egyptian Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018 offers the reader an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the Egyptian defense industry.
Egypt is a major non-NATO ally of the US and for the past three decades, has been receiving Foreign Military Financing (FMF) from the US, amounting to US$1.3 billion per year. This FMF is used to fund the majority of the country’s capital expenditure and comes with a clause that requires the country to spend the entire amount on purchasing military equipment from American contractors. Egypt has used this financing to replace the majority of its aging Soviet and Chinese equipment with American military hardware and, as a result, the vast majority of its arsenal is produced by US. The preponderance of American military hardware also means that Egypt is reliant on contracts with US companies for the maintenance of its armed forces equipment. However, following the ousting of Egypt’s elected President, Mohammed Morsi, through a military coup in 2013, the US is reviewing its FMF to Egypt. Nevertheless, the country’s own defense budget is expected to increase over the forecast period, growing at a CAGR of 7.47%.
Although Egypt is safe from any threat of aggression from its neighbors, the perceived threat from Israel, along with the ongoing volatile political scenario of the country and ammunition modernization, are areas of focus for the military, and these factors are expected to drive and determine the country’s defense expenditure during the forecast period.
The Future of the Egyptian Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018 provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
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Future of the Egyptian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 – Table of Contents:
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1. Defense Market Size Historical and Forecast
3.1.1. Egyptian annual defense expenditure to reach US$6.4 billion by 2018
3.1.2. Perceived Threats, military modernization, peacekeeping operations, and domestic turbulence expected to drive the country’s defense expenditure
3.1.3. Defense expenditure as a percentage of GDP is expected to decline during the forecast period
3.2. Analysis of Defense Budget Allocation
3.2.1. Share of capital expenditure to average 15% over the forecast period
3.2.2. Egypt to allocate US$4.2 billion towards defense capital expenditure over the forecast period
3.2.3. The country is expected to spend US$23.9 billion on revenue expenditure over the forecast period
3.2.4. Per capita defense expenditure to increase over the forecast period
3.3. Homeland Security Market Size and Forecast
3.3.1. Egypt faces considerable risk from external and internal threats
3.3.2. Egypt experienced considerable terror activity during the review period
3.4. Benchmarking with Key Global Markets
3.4.1. Egyptian defense expenditure expected to grow at a faster pace over the forecast period
3.4.2. Egypt has a relatively small defense budget
3.4.3. Egypt allocates 1.7% of its GDP for defense
3.4.4. Egypt faces a substantial threat from foreign terrorist organizations
3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. Fighters & Multi-role Aircraft
3.5.2. Diesel Electric Submarines
3.5.3. Transport & Utility Aircraft
4 Defense Procurement Market Dynamics
5 Industry Dynamics
6 Market Entry Strategy
7 Competitive Landscape and Strategic Insights
8 Business Environment and Country Risk