Synopsis

Top level overview of the Saudi Arabian defense industry
A breakdown of the Saudi Arabian defense industry by spend pattern valued from 2005 through 2010 and forecasted from 2011 through 2016
A breakdown of the markets by segment valued from 2005 through 2010 and forecasted from 2011 through 2016
Details of top companies active across the Saudi Arabian defense industry
Emerging trends and opportunities in the Saudi Arabian 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 Saudi Arabia. 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 Saudi Arabian defense industry.
Industry structure: Five forces analysis to identify various power centers in the Saudi Arabian 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 Saudi Arabia. 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 Saudi Arabian 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 the regulations governing the Saudi Arabian defense industry and the potential market entry strategies with an expert analysis of the competitive structure
Identify top companies of the Saudi Arabian defense industry along with profiles of all those companies

Key Highlights

The Saudi Arabian defense industry valued US$48 billion in 2011 and is one of the largest defense markets globally. During the review period, the country's defense expenditure grew at a CAGR of 7.83%, and is expected to record a CAGR of 5.44 % over the forecast period, to value US$62.4 billion by 2016. The key drivers of such expenditure growth include increases in cross-border insurgency, domestic unease with the ruling regime, the rising number of Al Qaeda training camps in the country, an increasing focus on infrastructure security regarding oil and a regional rivalry with Iran to emerge as the most influential nation in the Middle East. Saudi Arabia's substantial defense budget, coupled with the limited capabilities of domestic defense firms, is attracting foreign OEMs into the market.

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 Defense Intelligence
2 Executive Summary
3 Market Attractiveness and Emerging Opportunities
3.1 Defense Market Size Historical and Forecast
3.1.1 Defense expenditure to grow at a CAGR of XX% over the forecast period
3.1.2 Strained relationship with Iran, high spending power and a lack of skilled personnel set to be key drivers of defense expenditure
3.2 Analysis of Defense Budget Allocation
3.2.1 Large spend on training of personnel set to continue
3.2.2 Per capita defense expenditure expected to increase over the forecast period
3.3 Homeland Security Market Size and Forecast
3.3.1 Saudi Arabia emerges as the largest homeland security market in the Middle East
3.3.2 Security threats will be the key driver of homeland security
3.4 Benchmarking with Key Global Markets
3.4.1 Saudi Arabia to become seventh-largest defense spender in the world by 2016
3.4.2 Saudi Arabia allocated XX% of its GDP for defense procurement in 2011, the largest amongst the leading military spenders
3.4.3 Saudi Arabia faces moderate risk of terror attacks
3.5 Market Opportunities: Key Trends and Drivers
3.5.1 Demand for missile defense systems to increase
3.5.2 Demand for helicopters, infantry-fighting vehicles and tanks to increase
3.5.3 Naval infrastructure modernization to drive demand for maritime weaponry
3.5.4 Demand for UAVs for surveillance and monitoring activities will increase
3.5.5 Fighter aircraft are one of the key focus areas for the Saudi air force
3.5.6 Threats to border security and critical infrastructure to create demand for monitoring and communication systems
4 Defense Procurement Market Dynamics
4.1 Import Market Dynamics
4.1.1 Defense industry heavily relies on imports from foreign countries
4.1.2 The UK and the US are the key defense suppliers to Saudi Arabia
4.1.3 Aircraft and missiles constitute the majority of Saudi Arabia’s defense imports
4.2 Export Market Dynamics
4.2.1 Saudi Arabia’s defense export market is negligible
5 Industry Dynamics
5.1 Five Forces Analysis
5.1.1 Bargaining power of supplier: medium
5.1.2 Bargaining power of buyer: medium to high
5.1.3 Barrier to entry: low to medium
5.1.4 Intensity of rivalry: high
5.1.5 Threat of substitution: high
6 Market Entry Strategy
6.1 Market Regulation
6.1.1 Defense industry remains closed to FDI
6.1.2 Government encourages offsets to overcome its shortcomings in the defense industry
6.2 Market Entry Route
6.2.1 Foreign OEMs seek to gain due to underdeveloped indigenous defense capabilities
6.2.2 A large number of foreign corporations enter the defense market by winning contracts
6.3 Key Challenges
6.3.1 Lack of investment opportunities
6.3.2 Political underpinnings, bribery, corruption and political affiliations
7 Competitive Landscape and Strategic Insights
7.1 Competitive Landscape Overview
7.1.1 Saudi Arabian defense sector is dominated by foreign competitors
7.1.2 Domestic participation in the Saudi Arabian defense industry limited to only two companies
7.2 Key Foreign Companies
7.2.1 BAE Systems Plc: overview
7.2.2 BAE Systems Plc: products and services
7.2.3 BAE Systems Plc: recent announcements and strategic initiatives
7.2.4 BAE Systems Plc: alliances
7.2.5 BAE Systems Plc: recent contract wins
7.2.6 BAE Systems Plc: financial analysis
7.2.7 EADS N.V.: overview
7.2.8 EADS N.V.: products and services
7.2.9 EADS N.V.: recent announcements and strategic initiatives
7.2.10 EADS N.V.: alliances
7.2.11 EADS N.V.: recent contracts wins
7.2.12 EADS N.V.: financial analysis
7.2.13 General Dynamics Corporation: overview
7.2.14 General Dynamics Corporation: products and services
7.2.15 General Dynamics Corporation: recent announcements and strategic initiatives
7.2.16 General Dynamics Corporation: alliances
7.2.17 General Dynamics Corporation: recent contract wins
7.2.18 General Dynamics Corporation: financial analysis
7.2.19 Lockheed Martin: overview
7.2.20 Lockheed Martin: products and services
7.2.21 Lockheed Martin: recent announcements and strategic initiatives
7.2.22 Lockheed Martin: alliances
7.2.23 Lockheed Martin: recent contract wins
7.2.24 Lockheed Martin: financial analysis
7.2.25 Science Applications International Corporation: overview
7.2.26 Science Applications International Corporation: products and services
7.2.27 Science Applications International Corporation: recent announcements and strategic initiatives
7.2.28 Science Applications International Corporation: alliances
7.2.29 Science Applications International Corporation: recent contract wins
7.2.30 Science Applications International Corporation: financial analysis
7.2.31 Sikorsky Aircraft Corporation: overview
7.2.32 Sikorsky Aircraft Corporation: products and services
7.2.33 Sikorsky Aircraft Corporation: recent announcements and strategic initiatives
7.2.34 Sikorsky Aircraft Corporation: alliances
7.2.35 Sikorsky Aircraft Corporation: recent contract wins
7.2.36 Sikorsky Aircraft Corporation: financial analysis
7.2.37 Thales: overview
7.2.38 Thales: products and services
7.2.39 Thales: recent announcements and strategic initiatives
7.2.40 Thales: alliances
7.2.41 Thales: recent contract wins
7.2.42 Thales: financial analysis
7.2.43 Boeing: overview
7.2.44 Boeing: products and services
7.2.45 Boeing: recent announcements and strategic initiatives
7.2.46 Boeing: alliances
7.2.47 Boeing: recent contract wins
7.2.48 Boeing: financial analysis
7.2.49 Northrop Grumman Corporation: overview
7.2.50 Northrop Grumman Corporation: products and services
7.2.51 Northrop Grumman Corporation: recent announcements and strategic initiatives
7.2.52 Northrop Grumman Corporation: alliances
7.2.53 Northrop Grumman Corporation: recent contract wins
7.2.54 Northrop Grumman Corporation: financial analysis
7.2.55 Rolls Royce: overview
7.2.56 Rolls Royce: products and services
7.2.57 Rolls Royce: recent announcements and strategic initiatives
7.2.58 Rolls Royce: alliances
7.2.59 Rolls Royce: recent contract wins
7.2.60 Rolls Royce: financial analysis
7.3 Key Domestic Companies
7.3.1 Advanced Electronics Company: overview
7.3.2 Advanced Electronics Company: products and services
7.3.3 Advanced Electronics Company: recent announcements and strategic initiatives
7.3.4 Advanced Electronics Company: alliances
7.3.5 Advanced Electronics Company: recent contract wins
7.3.6 Advanced Electronics Company: financial analysis
7.3.7 Al Salam Aircraft Company: overview
7.3.8 Al Salam Aircraft Company: products and services
7.3.9 Al Salam Aircraft Company: recent announcements and strategic initiatives
7.3.10 Al Salam Aircraft Company: alliances
7.3.11 Al Salam Aircraft Company: recent contract wins
7.3.12 Al Salam Aircraft Company: financial analysis
8 Business Environment and Country Risk
8.1 Business Confidence
8.1.1 Business Confidence Index
8.1.2 Market Capitalization Trend - Saudi Stock Exchange, Saudi Arabia
8.1.3 FDI Inflows by Sector
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 dollar)
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 dollar)
8.2.11 Manufacturing - Manufacturing Output-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, Utilities at Current Prices (US dollars)
8.2.14 Manufacturing - Mining, Manufacturing, 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-Current Prices
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$-SAR (Annual Average)
8.2.28 Exchange Rate US$-SAR (End of fiscal year)
8.2.29 Debt Service Ratio
8.3 Infrastructure Quality and Availability
8.3.1 Transport - Highways and Railways
8.3.2 Transport - Automotive Components Export Trend
8.3.3 Transport - Automotive Product Imports Trend
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
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 Male 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 Contact Us
9.2 About ICD Research
9.3 Disclaimer

List of Tables

Table 1: Saudi Arabian Defense Expenditure, 2007-2011
Table 2: Saudi Arabian Defense Expenditure, 2012-2016
Table 3: Saudi Arabian Defense Budget Split Between Capital and Revenue Expenditure, 2007-2011
Table 4: Saudi Arabian Defense Budget Split Between Capital and Revenue Expenditure, 2012-2016
Table 5: Saudi Arabian Per Capita Defense Expenditure (US Dollars), 2007-2011
Table 6: Saudi Arabian Per Capita Defense Expenditure (US Dollars), 2012-2016
Table 7: Benchmarking with Key Markets - 2007-2011 vs 2012-2016
Table 8: Benchmarking with World’s Largest Defense Spenders - 2011 and 2016
Table 9: ICD Research Terrorism Index
Table 10: Saudi Arabia - Offset Guidelines and Agreements
Table 11: Market Entry and Strategic Objectives of Key Foreign Competitors
Table 12: Market Entry by Key Foreign Competitors
Table 13: Competitive Landscape of the Saudi Arabian Defense Industry
Table 14: BAE Systems Plc - product focus
Table 15: BAE Systems Plc - Alliances
Table 16: BAE Systems Plc - Recent Contract Wins
Table 17: EADS N.V.- product focus
Table 18: EADS N.V. - Alliances
Table 19: EADS N.V.- Recent Contract Wins
Table 20: General Dynamics Corporation - product focus
Table 21: General Dynamics Corporation - Alliances
Table 22: General Dynamics Corporation - Recent Contract Wins
Table 23: Lockheed Martin - product focus
Table 24: Lockheed Martin - Alliances
Table 25: Lockheed Martin - Recent Contract Wins
Table 26: Science Applications International Corporation - product focus
Table 27: Science Applications International Corporation - Alliances
Table 28: Science Applications International Corporation - Recent Contract Wins
Table 29: Sikorsky Aircraft Corporation - product focus
Table 30: Sikorsky Aircraft Corporation - Alliances
Table 31: Sikorsky Aircraft Corporation - Recent Contract Wins
Table 32: Thales - product focus
Table 33: Thales - Alliances
Table 34: Thales - Recent Contract Wins
Table 35: Boeing - product focus
Table 36: Boeing - Alliances
Table 37: Boeing - Recent Contract Wins
Table 38: Northrop Grumman Corporation - product focus
Table 39: Northrop Grumman Corporation - Alliances
Table 40: Northrop Grumman Corporation - Recent Contract Wins
Table 41: Rolls Royce - product focus
Table 42: Rolls Royce - Recent Contract Wins
Table 43: Advanced Electronics Company - product focus
Table 44: Advanced Electronics Company - Alliances
Table 45: Advanced Electronics Company - Recent Contract Wins
Table 46: Al Salam Aircraft Company - product focus
Table 47: Al Salam Aircraft Company - Alliances
Table 48: Al Salam Aircraft Company - Recent Contract Wins

List of Figures

Figure 1: Saudi Arabian Defense Expenditure, 2007-2011
Figure 2: Saudi Arabian Defense Expenditure, 2012-2016
Figure 3: Saudi Arabian Defense Budget Split Between Capital and Revenue expenditure, 2007-2011
Figure 4: Saudi Arabian Defense Budget Split Between Capital and Revenue Expenditure, 2012-2016
Figure 5: Saudi Arabian Per Capita Defense Expenditure (US Dollars), 2007-2011
Figure 6: Saudi Arabian Per Capita Defense Expenditure (US Dollars), 2012-2016
Figure 7: ICD Research Terrorism Heat Map
Figure 8: ICD Research Terrorism Heat Index, 2011
Figure 9: Benchmarking with Key Markets - 2007-2011 vs 2012-2016
Figure 10: Benchmarking with World’s Largest Defense Spenders - 2011 and 2016
Figure 11: Benchmarking with Large Defense Spenders as % of GDP - 2011
Figure 12: Saudi Arabian Defense Imports (US$ Million), 2005-2010
Figure 13: Saudi Arabian Defense Imports by Country (%), 2005-2010
Figure 14: Saudi Arabian Defense Imports by Weapon Category (%), 2005-2010
Figure 15: Industry Dynamics - Porter’s Five Forces Analysis
Figure 16: BAE Systems Plc - Revenue Trend Analysis (GBP Billion), 2006-2010
Figure 17: BAE Systems Plc - Operating Profit Trend Analysis (GBP Million), 2006-2010
Figure 18: BAE Systems Plc - Net Profit Trend Analysis (SGD Million), 2006-2010
Figure 19: Saudi Arabia Business Confidence Index, 2003-2010
Figure 20: Saudi Stock Exchange Market Capitalization, 2003-2009
Figure 21: Saudi Arabia FDI Inflows by Sector (US$ million), 2003-2009
Figure 22: Saudi Arabia Deployment of Credit by Sector (US$ billion), 2003-2009
Figure 23: Saudi Arabia GDP Value at Constant Prices, 2003-2015
Figure 24: Saudi Arabia GDP Per Capita at Constant Prices, 2003-2015
Figure 25: Saudi Arabia GDP at Current Prices, 2003-2015
Figure 26: Saudi Arabia GDP Per Capita at Current Prices, 2003-2015
Figure 27: Saudi Arabia GDP Split by Key Segments 2003 Vs 2009
Figure 28: Saudi Arabia Agriculture Output Value at Current Prices (Local Currency), 2003-2015
Figure 29: Saudi Arabia Agriculture Output Value at Current Prices (US Dollar), 2003-2015
Figure 30: Saudi Arabia Agriculture Output at Current Prices as a percentage of GDP, 2003-2015
Figure 31: Saudi Arabia Manufacturing Output at Current Prices (Local Currency), 2003-2015
Figure 32: Saudi Arabia Manufacturing Output at Current Prices (US Dollar), 2003-2015
Figure 33: Saudi Arabia Manufacturing Output at Current Prices as a percentage of GDP, 2003-2015
Figure 34: Saudi Arabia Mining, Manufacturing, Utilities Output, at Current Prices (Local Currency), 2003-2015
Figure 35: Saudi Arabia Mining, Manufacturing, Utilities Output, at Current Prices (US Dollar), 2003-2015
Figure 36: Saudi Arabia Mining, Manufacturing, Utilities Output, at Current Prices as a percentage of GDP, 2003-2015
Figure 37: Saudi Arabia Construction Output, at Current Prices (Local Currency), 2003-2015
Figure 38: Saudi Arabia Construction Output, at Current Prices, 2003-2015
Figure 39: Saudi Arabia Construction Output, at Current Prices as a percentage of GDP, 2003-2015
Figure 40: Saudi Arabia Crude Steel Production, 2003-2015
Figure 41: Saudi Arabia Crude Oil Consumption, 2003-2015
Figure 42: Saudi Arabia Inflation Rate, 2003-2015
Figure 43: Saudi Arabia Fiscal Deficit as a percentage of GDP, 2003-2015
Figure 44: Saudi Arabia Exports as a Percentage of GDP, 2003-2015
Figure 45: Saudi Arabia Imports as a Percentage of GDP, 2003-2015
Figure 46: Saudi Arabia Exports Growth, 2003-2015
Figure 47: Saudi Arabia Imports Growth, 2003-2015
Figure 48: Saudi Arabia External Debt as % GDP 2003-2009
Figure 49: Saudi Arabia Exchange Rate US$-SAR (Annual Average), 2003-2009
Figure 50: Saudi Arabia Exchange Rate (End of Fiscal Year), 2003-2009
Figure 51: Saudi Arabia Debt Service Ratio, 2003-2009
Figure 52: Saudi Arabia Total Land Transportation System, 2009
Figure 53: Saudi Arabia Automotive Components Exports, 2003-2015
Figure 54: Saudi Arabia Automotive Components Imports, 2003-2015
Figure 55: Saudi Arabia Total Installed Capacity for Electricity Generation, 2003-2015
Figure 56: Saudi Arabia Installed Capacity for Conventional Thermal Electricity Generation, 2003-2015
Figure 57: Saudi Arabia Electricity Production, 2003-2015
Figure 58: Saudi Arabia Electric Power Consumption, 2003-2015
Figure 59: Saudi Arabia Healthcare Expenditure, 2003-2015
Figure 60: Saudi Arabia Healthcare Expenditure as percentage of GDP, 2003-2015
Figure 61: Saudi Arabia Per Capita Healthcare Expenditure, 2003-2015
Figure 62: Saudi Arabia Internet Subscribers, 2003-2015
Figure 63: Saudi Arabia Broadband Internet Subscribers, 2003-2015
Figure 64: Saudi Arabia Personal Computer Usage (per 100 people), 2003-2015
Figure 65: Saudi Arabia Mobile Phone Penetration (per 100 people), 2003-2015
Figure 66: Saudi Arabia Size of Labor Force (in 15-59 age group), 2003-2015
Figure 67: Saudi Arabia Unemployment Rate, 2003-2015
Figure 68: Saudi Arabia Annual Disposable Income, 2003-2015
Figure 69: Saudi Arabia Annual Per Capita Disposable Income, 2003-2015
Figure 70: Saudi Arabia Consumer Expenditure on Food, 2003-2015
Figure 71: Saudi Arabia Annual Per Capita Consumer Expenditure on Food, 2003-2015
Figure 72: Saudi Arabia Urban and Rural Population, 2003-2009
Figure 73: Saudi Arabia Female as Percentage of Population, 2003-2015
Figure 74: Saudi Arabia Males as a percentage of Population, 2003-2015
Figure 75: Saudi Arabia Mean Age of Population, 2003-2015
Figure 76: Saudi Arabia Median Age of Population, 2003-2015
Figure 77: Saudi Arabia Population Density, 2003-2015
Figure 78: Saudi Arabia Age-wise Population Distribution, 2003-2015
Figure 79: Saudi Arabia Age-wise Male Population Distribution, 2003-2015
Figure 80: Saudi Arabia Age-wise Female Population Distribution, 2003-2015
Figure 81: Saudi Arabia Number of Households, 2003-2015
Figure 82: Global Terrorism Heat Map
Figure 83: Saudi Arabia Transparency Index, 2003-2009