Future of the Jordan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

Future of the Jordan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022

Summary

The Future of the Jordan Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2022, published by Strategic Defence Intelligence, provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.

Synopsis

This report offers detailed analysis of the Jordan defense industry with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants.

In particular, it provides an in-depth analysis of the following -
- The Jordan defense industry market size and drivers: detailed analysis of the Jordan defense industry during 2018-2022, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns
- Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country
- Porter’s Five Force analysis of the Jordan defense industry: analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry
- Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years
- Market opportunities: details of the top five defense investment opportunities over the next 10 years
- Competitive landscape and strategic insights: analysis of the competitive landscape of the Jordan defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis

Scope

- Jordan’s defense expenditure rose from US$1.5 billion in 2013 to US$2.1 billion in 2017, at a CAGR of 8.28% due to the country’s precarious security environment aggravated by the responsibility of hosting a large refugee population. Attempts to modernize its military equipment will therefore drive its defense expenditure over the forecast period.
- In Jordan, the military is one of the largest employment generators in the public service sector. Salaries account for a higher percentage of the country’s total expenditure on defense and security. During the historic period, 96.6% of the defense budget was allocated to revenue expenditure including salaries, logistics, operational costs, training, and maintenance. The remaining 3.4% was allocated to capital expenditure. Over the forecast period, the government will maintain its current allocation to capital expenditure, averaging 3.3% of the total defense budget.
- The MoD is expected to invest in border security systems & equipment, armored vehicles, and patrol boats among others.

Reasons to buy

- This report will give the user confidence to make the correct business decisions based on a detailed analysis of the Jordan defense industry market trends for the coming five years
- The market opportunity section will inform the user about the various military requirements that are expected to generate revenues during the forecast period. The description includes technical specifications, recent orders, and the expected investment pattern by the country during the forecast period
- Detailed profiles of the top domestic and foreign defense manufacturers with information about their products, alliances, recent contract wins, and financial analysis wherever available. This will provide the user with a total competitive landscape of the sector
- A deep qualitative analysis of the Jordan defense industry covering sections including demand drivers, Porter’s Five Forces Analysis, Key Trends and Growth Stimulators, and latest industry contracts

1. Introduction 7
1.1. What is this Report About? 7
1.2. Definitions 7
1.3. Summary Methodology 10
1.4. About Strategic Defence Intelligence 12
2. Executive Summary 13
3. Market Attractiveness and Emerging Opportunities 15
3.1. Current Market Scenario 16
3.1.1. Primary threat perception 16
3.1.2. Military doctrine and strategy 17
3.1.3. Military Fleet Size 19
3.1.4. Procurement Programs 23
3.1.5. Social, political, and economic environment and support for defense projects 24
3.1.6. Political and strategic alliances 24
3.2. Defense Market Size - Historical and Forecast 26
3.2.1. Jordanian defense budget to post a CAGR of 6.31% over the forecast period 26
3.2.2. Jordanian aggregate defense expenditure - inclusive of US military aid - will post a forecast-period CAGR of 5.30% 28
3.2.3. Hostility among neighboring countries and foreign military aid to drive defense expenditure 31
3.2.4. Jordanian defense expenditure as a percentage of GDP to average 4.2% over the forecast period 32
3.3. Analysis of Defense Budget Allocation 34
3.3.1. Revenue expenditure to continue to take precedence over capital expenditure 34
3.3.2. Financial Aid from the US contributes a major share of the country’s capital expenditure 36
3.3.3. The country’s capital budget allocations else remain low 37
3.3.4. Per capita defense expenditure to grow steadily over the forecast period 39
3.4. Homeland Security Market Size and Forecast 40
3.4.1. Homeland security expenditure to post a forecast-period CAGR of 2.87% 40
3.4.2. Internal conflicts and unauthorized activities in refugee camps will be the key factors driving HLS expenditure 42
3.4.3. Jordan considered at ‘moderate risk’ of terrorism 43
3.4.4. Jordan faces a moderate level of threat from terrorist organizations 44
3.4.5. Jordan has a terrorism index score of 2.9 46
3.5. Benchmarking with Key Global Markets 47
3.5.1. Jordan ranks among the lowest defense spending countries in the world 47
3.5.2. Jordan defense spending will remain minimal when compared to top regional spenders Saudi Arabia, UAE, Qatar and Kuwait 49
3.5.3. Jordan ranks low in terms of defense expenditure as a percentage of GDP 50
3.6. Market Opportunities: Key Trends and Drivers 51
3.6.1. Demand for border security systems expected to rise 51
3.6.2. Demand for armored vehicles likely to surge over the forecast period 52
3.6.3. Procurement of patrol boats expected to increase 52
4. Defense Procurement Market Dynamics 53
4.1. Import Market Dynamics 53
4.1.1. The majority of Jordan’s military equipment is generated through foreign imports 53
4.1.2. The Netherlands, the US, and Belgium were the dominant suppliers of defense equipment to Jordan 54
4.1.3. Aircraft and missiles dominated Jordanian defense imports 55
4.2. Export Market Dynamics 56
4.2.1. Defense exports expected to grow during the forecast period 56
4.2.2. Pakistan and Kenya accounted for the largest shares of Jordan’s total defense exports 57
4.2.3. Defense exports mainly include aircraft and armored vehicles 58
5. Industry Dynamics 59
5.1. Five Forces Analysis 59
5.1.1. Bargaining power of suppliers: high 60
5.1.2. Bargaining power of buyers: low 60
5.1.3. Barrier to entry: medium 60
5.1.4. Intensity of rivalry: low to medium 60
5.1.5. Threat of substitution: low to medium 60
6. Market Entry Strategy 61
6.1. Market Regulation 61
6.1.1. The government allows FDI in the defense industry with stipulations 61
6.1.2. Jordan does not impose any offset obligations 61
6.2. Market Entry Route 62
6.2.1. Budgeting Process 62
6.2.2. Procurement Policy and Process 62
6.2.3. Government-to-government deals are the preferred market entry route for foreign OEMs 62
6.2.4. Joint ventures and technology transfer form attractive entry routes for foreign manufacturers 63
6.3. Key Challenges 64
6.3.1. Small defense budget hinders the entry of foreign companies in Jordan 64
6.3.2. Corruption acts as an obstacle for market entry 64
7. Competitive Landscape and Strategic Insights 65
7.1. Competitive Landscape Overview 65
7.1.1. Jordanian defense industry is dominated by foreign competitors 65
7.2. Key Domestic Companies 66
7.2.1. KADDB: Overview 66
7.2.2. KADDB: Major products and services 66
7.2.3. KADDB: Recent announcements and strategic initiatives 66
7.2.4. KADDB: Alliances 67
8. Business Environment and Country Risk 68
8.1. Economic Performance 68
8.1.1. GDP per capita 68
8.1.2. Gross domestic product 69
8.1.3. Export of goods and services (LCU billion) 70
8.1.4. Import of goods and services 71
8.1.5. Gross national disposable income 72
8.1.6. LCU per US$ (period average) 73
8.1.7. Market capitalization of listed companies 74
8.1.8. Market capitalization of listed companies as a percentage of GDP 75
8.1.9. Total government cash surplus/deficit as a percentage of GDP 76
8.1.10. Goods exports as a percentage of GDP 77
8.1.11. Goods Imports as a percentage of GDP 78
8.1.12. Services Imports as a percentage of GDP 79
8.1.13. Services exports as a percentage of GDP 80
8.1.14. Mining, manufacturing, and utilities output 81
9. Appendix 82
9.1. About SDI 82
9.2. Disclaimer 82

List Of Tables

Table 1: Jordanian Army Strength, 2017 19
Table 2: Jordan Air Force Strength, 2017 21
Table 3: Jordan Navy Strength 22
Table 4: Jordanian - Ongoing Development and Procurement Programs, 2017 23
Table 5: Jordanian - Future Procurement Programs, 2017 23
Table 6: Jordan Defense Expenditure (JOD Billion & US$ Billion), 2013-2022 26
Table 7: Total Jordanian Defense Expenditure Including US Aid, 2013-2022 28
Table 8: Jordanian GDP Growth vs. Defense Expenditure as Percentage of GDP Growth, 2013-2022 32
Table 9: Jordanian Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2022 34
Table 10: Jordanian Capital Expenditure Split by Allocated Capital Expenditure and US Military Aid (US$ Million),2013-2022 36
Table 11: Jordanian Defense Capital Budget Excluding US Aid (JOD Million & US$ Million), 2013-2022 37
Table 12: Jordanian Per Capita Defense Expenditure (US$), 2013-2022 39
Table 13: Jordan Homeland Security Expenditure (JOD Billion & US$ Billion), 2013-2022 40
Table 14: Terrorism Index, 2017 44
Table 15: Benchmarking with Key Markets - 2013-2017 vs. 2018-2022 47
Table 16: Jordanian Budget Formation Timetable 62
Table 17: Competitive Landscape of the Jordanian Defense Industry 65
Table 18: KADDB- Major Products & Services 66
Table 19: KADDB- Alliances 67

List Of Figures

Figure 1: Jordanian Defense Expenditure (JOD Billion), 2013-2022 27
Figure 2: Jordanian Defense Expenditure (US$ Billion), 2013-2022 27
Figure 3: Defense Expenditure, Excluding US Aid (US$ Billion), 2013-2022 29
Figure 4: US Military Aid to Jordan (US$ Million), 2013-2022 29
Figure 5: Jordanian Defense Budget Excluding US Aid (US$ Billion) Vs Jordanian Defense Expenditure Including US Aid (US$ Billion), 2013-2022 30
Figure 6: Jordanian GDP Growth vs. Defense Expenditures Percentage of GDP Growth, 2013-2022 33
Figure 7: Jordanian Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2022 35
Figure 8: Jordanian Capital Expenditure - Allocated Capital Expenditure Vs Total Capital Expenditure (Including US Military Aid) (US$ Million),2013-2022 36
Figure 9: Jordanian Allocated Defense Capital Budget (Excluding US Aid) (JOD Million), 2013-2022 38
Figure 10:Jordanian Allocated Defense Capital Budget (Excluding US Aid) (US$ Million), 2013-2022 38
Figure 11: Jordanian Per Capita Defense Expenditure (US$), 2013-2022 39
Figure 12: Jordanian Homeland Security Expenditure (JOD Billion), 2013-2022 41
Figure 13: Jordanian Homeland Security Budget (US$ Billion), 2013-2022 41
Figure 14: Terrorism Heat Map, 2017 43
Figure 15: Terrorism Index, 2017 46
Figure 16: Benchmarking with Key Markets - 2013-2017 vs. 2018-2022 48
Figure 17: Benchmarking with World’s Largest Defense Spenders (US$ Billion), 2017 and 2022 49
Figure 18: Benchmarking with Large Defense Spenders as a Percentage of GDP, 2017 50
Figure 19: Jordanian Defense Import Trend, 2012-2016 (TIV values) 53
Figure 20: Jordanian Defense Imports by Country (%), 2012-2016 54
Figure 21: Jordanian Defense Imports by Weapon Category (%), 2012-2016 55
Figure 22: Jordanian Defense Export Trend, 2012-2016 (TIV values) 56
Figure 23: Jordanian Defense Exports by Country (%), 2012-2016 57
Figure 24: Jordanian Defense Exports by Weapon Category (%), 2012-2016 58
Figure 25: Industry Dynamics - Porter’s Five Forces Analysis 59
Figure 26: Jordanian GDP per Capita (US$), 2015-2025 68
Figure 27: Jordanian GDP (Current US$ Billion), 2015-2025 69
Figure 28: Jordanian Exports of Goods and Services (LCU Billion), 2005-2014 70
Figure 29: Jordanian Imports of Goods and Services (LCU Billion), 2005-2014 71
Figure 30: Jordanian Gross National Disposable Income (US$ Billion), 2005-2012 72
Figure 31: Jordanian LCU per US$, 2015-2024 73
Figure 32: Jordanian Market Capitalization of Listed Companies (US$ Billion), 2005-2012 74
Figure 33: Jordanian Market Capitalization of Listed Companies (as a percentage of GDP), 2005-2012 75
Figure 34: Jordanian Total Government Cash Surplus/Deficit as a Percenrge of GDP, 2005-2012 76
Figure 35: Jordanian Goods Exports as a Percentage of GDP, 2005-2013 77
Figure 36: Jordanian Goods Imports as a Percentage of GDP, 2005-2013 78
Figure 37: Jordanian Services Imports as a Percenatge of GDP, 2005-2013 79
Figure 38: Jordanian Services Exports as a Percentage of GDP, 2005-2013 80
Figure 39: Mining, Manufacturing, Utilities Output (in LCU Billion), 2005-2014 81

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