Future of the Qatari Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2023

Table of Contents

1. Introduction 8

• 1.1 What is this Report About? 8
• 1.2 Definitions 8
• 1.3 Summary Methodology 10
• 1.4 About Strategic Defence Intelligence 11

2. Executive Summary 12

3. Market Attractiveness and Emerging Opportunities 14

• 3.1. Current Market Scenario 15
  • 3.1.1. Primary Threat Perception 15
  • 3.1.2. Military Doctrine & Strategy 16
  • 3.1.3. Military Fleet Size 17
  • 3.1.4. Procurement Programs 21
  • 3.1.5. Social, Political and Economic Environment & Support for Defense Projects 24
  • 3.1.6. Political & Strategic Alliances 25
• 3.2. Defense Market Size Historical and Forecast 26
  • 3.2.1. Qatari defense budget to grow at a CAGR of 8.47% during 2019-2023 26
  • 3.2.2. The arms race in the Middle East and strong cash reserves are the main factors driving Qatari defense expenditure 28
  • 3.2.3. Defense expenditure as a percentage of GDP to increase over the forecast period 29
• 3.3. Analysis of Defense Budget Allocation 31
  • 3.3.1. Procurement of advanced equipment to drive capital expenditure allocation over the forecast period 31
  • 3.3.2. Capital expenditure is expected to grow at a CAGR of 10.83% over the forecast Period 33
  • 3.3.3. Qatar’s per capita defense expenditure is expected to increase over the forecast period 35
• 3.4. Homeland Security Market Size and Forecast 36
  • 3.4.1. Homeland security (HLS) expenditure in Qatar is mainly driven by Maritime security, the FIFA World Cup 2022, and Cyber-Security 36
  • 3.4.2. Qatar falls under ‘some risk category’ by terrorist attack 37
  • 3.4.3. Qatar faces “Some Risk” of terrorism 38
  • 3.4.4. Qatar has a terrorism index score of 0.1 40
• 3.5. Benchmarking with Key Global Markets 41
  • 3.5.1. Qatari defense budget expected to register rapid growth over 2019-2023 41
  • 3.5.2. Qatari defense expenditure is small compared to the leading spenders 43
  • 3.5.3. Qatar spent over 3.2% of its GDP on defense in 2018 44
• 3.6. Market Opportunities: Key Trends and Drivers 45
  • 3.6.1. Top 10 Defense Sectors by Value (US$ Million) - Projections over 2018-2023 45
  • 3.6.2. Fighters & Multi-Role Aircraft 46
  • 3.6.3. Airborne C4ISR 47
  • 3.6.4. Land-Based C4ISR 48

4. Defense Procurement Market Dynamics 49

• 4.1. Import Market Dynamics 51
  • 4.1.1. Qatari defense industry is import driven 51
  • 4.1.2. US to continue to be major arms suppliers to Qatar 52
  • 4.1.3. Aircraft and Missiles to dominate Qatari defense imports 53
• 4.2. Export Market Dynamics 54
  • 4.2.1. Qatar’s defense export market is negligible 54

5. Industry Dynamics 55

• 5.1. Five Forces Analysis 55
  • 5.1.1. Bargaining power of supplier: high 56
  • 5.1.2. Bargaining power of buyer: medium to high 56
  • 5.1.3. Barrier to entry: medium 56
  • 5.1.4. Intensity of rivalry: low to medium 56
  • 5.1.5. Threat of substitution: medium-high 56

6. Market Entry Strategy 57

• 6.1. Market Regulation 57
  • 6.1.1. The Qatari Government does not disclose FDI in the defense industry 57
  • 6.1.2. Qatar has an undisclosed offset policy 57
• 6.2. Market Entry Route 58
  • 6.2.1. Budgeting Process 58
  • 6.2.2. Procurement Policy and Process 58
  • 6.2.3. Historical evidence points to government-government deals being the preferred entry route 58
  • 6.2.4. Gulf Co-operation Council (GCC) to form joint Military Command, which could be an alternative entry route for foreign OEM’s 58
  • 6.2.5. Cooperative agreement and military collaborations an easier way to access the Qatari defense market 59
• 6.3. Key Challenges 60
  • 6.3.1. US domination of the Qatari defense market reduces opportunities for other foreign manufacturers 60
  • 6.3.2. Scarcity of skilled labor 60
  • 6.3.3. Drastic decline in global energy prices forced the country to re-evaluate requirements and prioritize defense spending in key sectors 60

7. Competitive Landscape and Strategic Insights 61

• 7.1. Competitive Landscape Overview 61
• 7.2. Key Foreign Companies 63
  • 7.2.1. Lockheed Martin: overview 63
  • 7.2.2. Lockheed Martin: products 63
  • 7.2.3. Lockheed Martin: recent announcements and strategic initiatives 63
  • 7.2.4. Lockheed Martin: alliances 65
  • 7.2.5. Lockheed Martin: recent contract wins 66
  • 7.2.6. Lockheed Martin: Financial Analysis 67
  • 7.2.7. Sikorsky: overview 69
  • 7.2.8. Sikorsky: products and services 69
  • 7.2.9. Sikorsky: recent announcements and strategic initiatives 69
  • 7.2.10. Sikorsky: alliances 71
  • 7.2.11. Sikorsky: recent contract wins 72
  • 7.2.12. Raytheon: overview 73
  • 7.2.13. Raytheon: products 73
  • 7.2.14. Raytheon: recent announcements and strategic initiatives 73
  • 7.2.15. Raytheon: alliances 76
  • 7.2.16. Raytheon: recent contract wins 77
  • 7.2.17. Raytheon: Financial Analysis 78
  • 7.2.18. Boeing: Overview 80
  • 7.2.19. Boeing: Products 80
  • 7.2.20. Boeing: Recent announcements and strategic initiatives 81
  • 7.2.21. Boeing: Alliances 82
  • 7.2.22. Boeing: Contracts 83
  • 7.2.23. BAE Systems Plc.: Overview 84
  • 7.2.24. BAE Systems Plc.: Products and Services 84
  • 7.2.25. BAE Systems Plc.: Alliances 85
  • 7.2.26. Dassault Aviation: Overview 86
  • 7.2.27. Dassault Aviation: Product Focus 86
  • 7.2.28. Dassault Aviation: Recent Announcements and Strategic Initiatives 86
  • 7.2.29. Dassault Aviation: Alliances 88
  • 7.2.30. Dassault Aviation: Recent Contract Wins 89
  • 7.2.31. Dassault Aviation: Financial Analysis 89
  • 7.2.32. Pilatus Aircraft Limited: Overview 92
  • 7.2.33. Pilatus Aircraft Limited: Products and services 92
  • 7.2.34. Pilatus Aircraft Limited: Recent announcements and strategic initiatives 92
  • 7.2.35. Pilatus Aircraft Limited: Alliances 93
  • 7.2.36. Pilatus Aircraft Limited: Recent contract wins 94

8. Business Environment and Country Risk 95

• 8.1. Economic Performance 95
  • 8.1.1. GDP per Capita per Capita (US$) 95
  • 8.1.2. Gross Domestic Product, current US$ 96
  • 8.1.3. Exports of Goods and Services 97
  • 8.1.4. Imports of Goods and Services (Current LCU) 98
  • 8.1.5. Gross national disposable income 99
  • 8.1.6. Local Currency Unit per US$ 100
  • 8.1.7. Market Capitalization of Listed Companies 101
  • 8.1.8. Market Capitalization of Listed Companies as a % GDP 102
  • 8.1.9. Government Cash Surplus/Deficit 103
  • 8.1.10. Goods Exports as a % of GDP 104
  • 8.1.11. Goods Imports as a % of GDP 105
  • 8.1.12. Services Imports as a % of GDP 106
  • 8.1.13. Services Exports as a % of GDP 107
  • 8.1.14. Net Foreign Direct Investment 108
  • 8.1.15. Net foreign direct investment as % of GDP 109
  • 8.1.16. Mining, Manufacturing, Utilities Output 110

9. Appendix 111

• 9.1. About GlobalData 111