2013-10-12 11:22:47 - New Defense research report from Strategic Defence Intelligence is now available from Fast Market Research
This report is the result of SDI's extensive market and company research covering the Egyptian defense industry, and provides detailed analysis of both historic and forecast defense industry values including key growth stimulators, analysis of the leading companies in the industry, and key news.
Introduction and Landscape
Why was the report written?
The Future of the Egyptian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 offers the reader an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the Egyptian defense industry.
What is the current market landscape and what is changing?
Egypt is a major non-NATO ally of the US and for the past three decades, has been receiving
Foreign Military Financing (FMF) from the US, amounting to US$1.3 billion per year. This FMF is used to fund the majority of the country's capital expenditure and comes with a clause that requires the country to spend the entire amount on purchasing military equipment from American contractors. Egypt has used this financing to replace the majority of its aging Soviet and Chinese equipment with American military hardware and, as a result, the vast majority of its arsenal is produced by US. The preponderance of American military hardware also means that Egypt is reliant on contracts with US companies for the maintenance of its armed forces equipment. However, following the ousting of Egypt's elected President, Mohammed Morsi, through a military coup in 2013, the US is reviewing its FMF to Egypt. Nevertheless, the country's own defense budget is expected to increase over the forecast period, growing at a CAGR of 7.47%.
Full Report Details at
- www.fastmr.com/prod/695632_future_of_the_egyptian_defense_indust ..
What are the key drivers behind recent market changes?
Although Egypt is safe from any threat of aggression from its neighbors, the perceived threat from Israel, along with the ongoing volatile political scenario of the country and ammunition modernization, are areas of focus for the military, and these factors are expected to drive and determine the country's defense expenditure during the forecast period.
What makes this report unique and essential to read?
The Future of the Egyptian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, including highlights of key growth stimulators. It also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
Key Features and Benefits
The report provides detailed analysis of the current industry size and growth expectations from 2014 to 2018, including highlights of key growth stimulators, and also benchmarks the industry against key global markets and provides a detailed understanding of emerging opportunities in specific areas.
The report includes trend analysis of imports and exports, together with their implications and impact on the Egyptian defense industry.
The report covers five forces analysis to identify various power centers in the industry and how these are expected to develop in the future.
The report allows readers to identify possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
The report helps the reader to understand the competitive landscape of the defense industry in Egypt. It provides an overview of key defense companies, both domestic and foreign, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Key Market Issues
From 1956 to 1970, Egypt was under military rule under the presidency of Gamal Abdel Nasser, a situation that continued when Nasser was replaced with Anwar Sadat following Nasser's death in 1970. From 1956 until 1979, when Sadat was instrumental in the signing of an Arab-Israeli peace agreement, Egypt's military spending was solely dictated by its hostile relationship with Israel. Since Sadat, Egypt has been under an authoritarian regime, a situation that is still the case despite the popular uprising in the country. As a result, Egypt does not follow open market and fair competition principles regarding defense deals, instead preferring to conduct private government to government or military to military talks regarding defense procurements, and making it difficult for foreign firms to compete. Additionally, the country does not follow a structured defense budgeting mechanism, which often results in improper budget allocations and a high level of corruption in the armed forces. It also does not currently disclose its defense budget and does not account for a substantial amount of the US FMF it receives, although it is estimated that a third of this is spent on maintenance and upgrades. A number of foreign OEMs find the lack of transparency in Egypt's defense deals, and delays in finalization, key challenges to the successful execution of defense deals in the country.
About Strategic Defence Intelligence
Strategic Defence Intelligence provides a stream of continuously updated customer and competitor intelligence, as well as detailed research reports providing an unrivalled source of global information on the latest developments in the defence industry. View more research from Strategic Defence Intelligence at www.fastmr.com/catalog/publishers.aspx?pubid=1040
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