Today: November 26, 2015, 1:27 pm

Georgia defence market: Expenditure at around $7 billion in 2013
Future of the Georgian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018 - a new market research report on 2014-04-24 20:27:01
Georgian defense expenditure increased at a CAGR of 6.03% during the review period and valued US$7.19 billion in 2013. The focus of the Georgian government will be on counter terrorism activities, modernization programs and threats posed by Russia.

Russia, being the main trading partner of Georgia started imposing embargoes since 2005. It started with restricting entry of agricultural produce and then targeted the main industries like mineral water and wine. In August 2008 Georgia fought a war with its separatist regions, South Ossetia and Abkhazia, which gained complete de facto control of their territories with the help of Russian forces. When the war ended, Russia proposed an arms embargo against Georgia, which is currently under review by the UN. This has restricted the entry of other nations to cater to the requirement by the Georgian Defence industry in order to maintain cordial relationship with Russia It´s military power is also an important factor, as foreign countries want to maintain cordial relations with Russia. Israel, for example, which had been an exporter of arms to Georgia, stopped doing so when Russia began exporting advanced equipment to Iran and Syria, both of which have conflicting relations with Israel.]

Georgia´s defence budget is small and does not attract many companies. The country´s budget reached its peak in 2008, at US$945.95 million. During the review period, an average of 23% of the defence budget was allocated for capital expenditure on defence equipment. This small size of the budget does not attract many companies to supply arms to, or invest in, the country. The proposed arms embargo against Georgia further increases the challenges, as defence contractors might not find it feasible to violate the embargo to cater for a small market.

The domestic defence industry of Georgia is undeveloped and is mainly dependent on imports for its arms requirements. Foreign defence companies can directly sell defence equipment to the Georgian Defence Ministry, either through direct commercial sales (DCS) or foreign military sales (FMS). Georgia received arms from the US prior to the proposal of the arms embargo on the country. During 2002-2006 the country received arms worth US$77.5 million through DCS and US$82.2 million through FMS. Historically, FMS and DCS have been the most effective entry routes to cater to the Georgian markets.

Click for report details: ..

Browse all Defence Market Research Reports ..

Browse all Defence Company Profile Reports ..

Browse all Latest Market Research Reports ..

About Us is a leading online business information aggregator with over 300,000 market reports and company profiles available to our clients. Our extensive range of reports are sourced from the leading publishers of business information and provide clients with the widest range of information available. In terms of company profiles,’s online database allows clients access to market and corporate information to over 100,000 different companies. We provide clients with a fully indexed database of information where clients can find specific market reports on their niche industry sectors of interest.

Press Information

Published by
Mike King
London: +44 (0) 203 086 8600

# 588 Words
Related Articles
More From Finance
USGFX Anticipates A Rise In Forex Trading [..]
The Shanghai Composite Index has been volatile and at one stage dropped more than 30% from its June 12 peak, [..]
Credit-Yogi Recommends Reputable Debt Solution Companies To [..]
Many people who have poor credit don’t know what to do about it. They realize that their bad credit prevents [..]
Credit-Yogi Reveals Special Considerations for Military Members [..]
No one wants to have their vehicle taken back by their banks. It’s a source of stress for the individual [..]
Credit-Yogi Teaches Consumers How To Use HAMP [..]
Be Prepared to Utilize HAMP Lenders do not like to help borrowers prevent foreclosure by accessing the Obama loan modification [..]
Credit-Yogi Informs Military Members Facing Auto Repossession [..]
No one wants to have their vehicle taken back by their banks. It’s a source of stress for the individual [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.