Defence spending by governments in the Middle East and North Africa is forecast to moderately rise to US$124.9 billion this year.
Spending on defence across the Mena region grew by 12.1 per cent to $120.6bn in 2013, making it the fastest growing region in percentage terms in the world, according to IHS Jane’s Annual Defence Budgets Review, released yesterday.
The report found that Saudi Arabia, Oman, Iraq and Bahrain all featured in the top five growth markets in percentage terms for 2013, with Middle Eastern governments accounting for six of the top 10 fastest growing markets.
Defence spending in the Mena region accounts for 7.8 per cent of worldwide expenditure, up from 5.2 per cent in 2008, according to IHS.
Growth in the defence budgets of Gulf cooperation countries has been particularly high over recent years, and now accounts for about 83 per cent of all spending in the Middle East.
“Since 2011, Oman’s defence budget has now increased by 115 per cent, from $4.7bn to $9.2bn in nominal terms,” said Fenella McGerty, a senior analyst with IHS Jane’s Aerospace, Defence & Security.
“[Saudi Arabia] increased its defence and security budget by about 19 per cent in 2013, the largest rise in spending since 2007. Total expenditure on the sector has now reached $67bn and has more than tripled in nominal terms over the past decade,” she said.
IHS figures indicate that Middle East governments will spend almost $600bn on defence in the next five years, of which $120bn will be allocated to the procurement and modernisation of defence equipment.
The growth in Middle East defence spending will contribute to 2014 being the first year since 2009 that global defence spending will post an annual increase.
“With military budgets among many of the major Nato nations due to continue to contract over the next 12 months, the centre of gravity of defence expenditure is expected to continue to shift south and east in 2014,” said Paul Burton, the director at IHS Jane’s.
“Russia, Asia and the Middle East will provide the impetus behind the growth in global military spending expected this year and will drive the recovery projected from 2016 onwards,” he said.
The UAE Government is currently in negotiations with Lockheed Martin over a multibillion-dollar purchase of weapons, incuding 30 F-16 Block 61 aircraft, US authorities confirmed last month.
jeverington@thenational.ae
