The Saudi Arabian defence market was valued at $48 billion in 2011 and is set to hit a total spending value of $50.83 billion in 2012. The market is expected to record a compound annual growth rate (CAGR) of 5.44% over the period to 2016, to reach a market value of $62.4 billion.
In 2010 $11.1 billion was spent on purchasing new or upgraded military equipment, with it being expected that Saudi Arabia will continue its robust demand for defence acquisitions over the next decade.
Saudi Arabian defence market growth is set to be driven by a number of factors such as its regional rivalry with Iran, the threats posed by various terrorist and insurgent groups, the kingdom's desire to play a leading role in Middle East security, and piracy off the waters of Somalia.
Saudi Arabia faces a diverse range of domestic and regional security threats, and coupled with the country's position as a leading energy supplier worldwide, the Kingdom's defence capabilities carry added importance.
Whilst defence and security markets in Europe and the US contract due to pressure to reduce public spending, and cancellations and delays to defence programmes continue to curtail opportunities; Saudi Arabia's position at the heart of the Middle East has meant that defence spending continues to be a top government priority.
For more information on the Saudi Arabian defence market, see the latest research: Saudi Arabian Defence Market Report
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