ABU DHABI — This year’s International Defense and Exhibition Conference, or IDEX 2015, showcased a robust defense market, especially for land forces equipment, fighter aircraft, and unmanned systems, as covered by National Defense Magazine, this past February.
“Jovovic…estimates that countries in the Middle East could award up to $100 billion in contracts over the next five years.”According to Alek Jovovic, principal at Avascent, MENA countries will focus on larger acquisitions such as aircraft, ships, vehicles, and weapons systems. After those needs are met, there may be demand for upgrades to sensors communications, and intelligence surveillance and reconnaissance systems. With ISIS threatening security across the region, countries can’t afford to skimp on defense, regardless of falling oil prices.
“We are forecasting continued growth in this sector, about 5 to 6 percent per year…In the near term, the amount of un-awarded money is fairly small, but it really does grow over time,” Jovoic commented. “The countries that really rely on oil are well padded. They have been making a considerable amount of money and investing and diversifying their holdings.”
Click here to read “IDEX Kicks Off as Middle East Turmoil Fuels Military Sales.”