Record-breaking $65 Billion Global Defense Trade in 2015 Fueled by Middle East, Asia

Arab countries lead Israel in defense imports, but Israel tops in exports.

By
June 13, 2016 19:04
2 minute read.
Hermes 900 drone

Hermes 900 drone. (photo credit: IDF)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

The Middle East and Southeast Asia had a record-breaking $65 billion in defense trade in 2015, which is expected to rise to $69b. in 2016, according to IHS Jane’s the Annual Global Defense Trade Report, released on Sunday.

France is on target to take second place among world defense exporters, in front of the current No. 2 Russia, but behind the leading US, which had trade worth $23b. (35 percent of the world total). Germany moved up to the third spot from fifth.

Be the first to know - Join our Facebook page.


The Middle East was the largest importing region, with $21.6b. in defense equipment. Saudi Arabia and the UAE imported $11.4b. worth of defense systems in 2015 (17.5% of the global total), up from $8.6 b. in 2014.

According to the data, Arab countries led Israel in defense imports, but Israel was tops in regional exports with around $2b., landing it in eighth place.

The report found that US trade to the region has been driven by sales of military aircraft and related systems.

“The global defense trade market has never seen an increase as large as the one we saw between 2014 and 2015,” said Ben Moores, a senior IHS analyst.

“The combined value of Saudi Arabia and the UAE’s defense imports is more than all of Western Europe’s defense imports combined,” Moores said. Saudi Arabia’s imports grew from $6 billion to $9.3 billion.

JPOST VIDEOS THAT MIGHT INTEREST YOU:


“The US, Canada, France and the UK are the main exporters of defense equipment to the Middle East and beneficiaries of this spending boom,” Moores said.

The report examined trends in the global defense market across 65 countries using data from the IHS Aerospace, Defense & Security Markets Forecast database, a publicly sourced global forecasting tool that tracks current and future programs.

The study includes production, R&D, logistics, and service revenues related to export.

Munitions and small arms were not included in the study and neither were homeland security or intelligence programs.

Canada is the second-largest exporter to the region, with $2.7b. in sales. Germany and Russia each had 25% growth in exports to the region with $1.4 and $1.3 billion respectively.

Russia is likely to increase its trade in the region as post-sanctions Iran starts to replace its old defense equipment, said the report.

Most of France’s sales went to India, Saudi Arabia, Australia, Qatar, Egypt and the UAE.

Another finding is that imports increased by 71% to Southeast Asia from 2009 to 2016.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

Mahmoud Ahmadinejad
October 16, 2018
The curious case of ‘woke’ Ahmadinejad

By LAHAV HARKOV