Business Monitor International


Kuwait Defence & Security Report

Published 04 September 2014

  • 78 pages
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  • Includes 3 free updated quarterly reports
 
$1,295.00
Kuwait Defence & Security Report

BMI View: Kuwait continues to have a close defence relationship with the US and has reportedly increased the number of service personnel receiving training in foreign academies. June 2013 witnessed Kuwait conduct parliamentary by-elections to replace five members of parliament who recently resigned over corruption allegations surrounding the country's prime minister. In BMI's view the resignations are likely to give the government an opportunity to bolster its position in the already pro-government parliament. As such, and despite ongoing sectarian tensions linked to the conflicts in Syria and Iraq, we expect that overall stability in the country is such that continued defence links with the US and Westerns arms contractors will be maintained.

The most serious threat is posed by the instability in Iraq and Syria, in particular the potential for a fallout from any further widening or intensification of Syria's civil war. In the domestic sphere, internal pressures connected to the government's resignation in July 2013 - leading to Kuwait's 13th new cabinet in seven years - could pose a challenge to the ruling monarchy. Despite an anticipated escalation of regional violence, we expect that overall stability in the country is such that continued defence links with the US and Westerns arms contractors will be maintained. Moreover, BMI expects Kuwait to increase its military spending and defence priorities to reflect its drive towards a more prominent role in regional and international affairs. As such, BMI's nominal defence expenditure growth forecast is 2.0% in 2014 in KWD terms, and 2.5% in 2015.

Kuwait still has a very weak domestic defence industry, although August 2013 reports that Kuwait Aerospace Technologies was working to test UAV technology with a Swedish firm seem to have bucked this trend. Nevertheless, the country is attempting to increase its military profile. In late September 2013, Kuwait hosted the first Annual Military Logistics conference, with a...

Table of Contents

BMI Industry View
7
SWOT Analysis
9
Kuwait Security SWOT
9
Kuwait Defence & Security SWOT
12
Political
14
Economic
15
Business Environment SWOT
16
Industry Forecast
18
Defence Expenditure
18
Table: Defence Expenditure (Kuwait 2011-2018)
19
Armed Forces
20
Table: Armed Forces Personnel (Kuwait 2004-2011)
21
Defence Trade
22
Table: Defence Trade Balance (Kuwait 2011-2018)
23
Exports
23
Table: Defence Exports (USDmn) (Kuwait 2011-2018)
24
Imports
25
Macroeconomic Forecasts
27
Economic Analysis
27
Government Consumption Outlook: Pickup In Growth
29
Fixed Investment: Finally Looking More Positive
30
Net Exports Outlook: Limited Growth Opportunities Ahead
32
Table: Kuwait - Economic Activity
34
Industry Risk Reward Ratings
35
Middle East And Africa - Security Risk Ratings
35
Table: Middle East And Africa Regional Security Ratings
35
Table: Middle East And Africa State Vulnerability To Terrorism Index
36
Kuwait Security Risk Ratings
37
Market Overview
38
Kuwait Defence Market Overview
38
Armed Forces And Government Spending
38
Government Spending
43
Industry Trends And Developments
43
Weapons Of Mass Destruction
44
Arms Trade Overview
44
Kuwait Security Overview
45
Domestic Threats
45
Regional Threats
45
International Threats
47
Regional Overview
50
Middle East And North Africa Security Overview
50
Global Industry Overview
66
Global Political Outlook
66
Methodology
72
Industry Forecast Methodology
72
Sector-Specific Methodology
73
Sources
74
Security Risk Ratings Methodology
74
Table: Indicators And Weighting
75

The Kuwait Defence & Security Report features Business Monitor International (BMI)'s independent forecasts for national and international security, the defence industry, military expenditure, employment in arms production, and arms imports and exports, as well as examining industry trends and prospects, national and multinational arms producers and the regulatory environment.

BMI's Kuwait Defence & Security Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Kuwaiti defence and security industry.

Key Benefits

  • Benchmark BMI's independent defence and security industry forecasts on Kuwait to test other views - a key input for successful budgetary and strategic business planning in the Kuwaiti defence and security market.
  • Target business opportunities and risks in the Asia defence and security sector through reviews of latest industry trends, regulatory changes and major deals, projects and investments in Asia.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).

Coverage

Global and Regional Political Outlooks

A strategic overview of the world's major political risks, identifying countries facing leadership successions and nations at risk of upheaval, inter-state conflict or separatism and insurgencies, plus a summary of the world's 'wild card' low-probability high-impact risks.

SWOT Analysis

Snapshot evaluation of the major issues affecting the defence and security sectors, economy and politics, with issues subdivided into 'Strengths', 'Weaknesses', 'Opportunities' and 'Threats'.

Political Risk Assessment

Drawing on BMI's heritage of more than 25 years of Country Risk analysis, this comprehensively evaluates the key risks to domestic politics and foreign relations, focusing on issues most likely to affect either domestic security or the defence sector.

Security Risk Analysis

BMI's proprietary Security Risk Rankings provide a reliable - and country comparable - guide to conflict, terrorism and criminal risk, backed up by our analyst's latest assessment of each component. Furthermore, drawing on our country risk expertise, we assess the state's vulnerability to a serious - or prolonged - terrorist campaign.

Armed Forces Spending/Expenditure

The reports contain a detailed breakdown of areas of expenditure by the armed forces, these include spending on international deployments, WMDs and missile defence systems as well as individual breakdowns of the cost-per-soldier.

Domestic Security Overview

The domestic security overview lists the various potential internal security threats facing a country, ranging from internal security issues such as terrorism, cyber terrorism, crime and drugs, to external security issues including general defence procedures and potential threats from specific countries.

BMI Industry Forecast Scenario

Historic data series and forecasts to end-2018 for key industry indicators supported by explicit assumptions, plus analysis of key downside risks to the main forecast.

Budgets & Expenditure: Defence expenditure (local currency and US$bn); defence expenditure (% of total budget); defence expenditure (% of GDP); defence expenditure per capita, US$; defence budget (local currency and US$bn).

Employment: Employment in arms production (`000s); employment in arms production (% of labour force).

Macroeconomic: BMI's forecasts and analysis of all headline macroeconomic indicators, including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Domestic Security Overview

The reports also provide a regional overview which details specific issues and flashpoints affecting , along with potential risks in the coming year.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc