Page 34 - ADT MARCH 2021 Online Magazine
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It is easy to see why the Middle East is such

                                                                       Currently, the region makes up 7.5 percent
                                                                       of the world’s total defense spending. With
                                                                       regional tensions high and the demand for
                                                                       advanced weapons systems and defense
                                                                       technologies on the rise in the Middle East, the
                                                                       an attractive market for defense contractors.  [ REPORT ]
                                                                       number is likely to increase and touch at least
                                                                       eight percent before the end of the decade,
                                                                       experts  say.  According  to  the  Stockholm
                                                                       International Peace Research Institute (SIPRI),
                                                                       Middle Eastern arms imports, which is the main
                                                                       driver of the global  arms market, grew by 25
                                                                       percent in 2016-2020, compared to 2011-2015.
                                                                       Arms imports by the UAE declined by 37 per-
                                                                       cent in the period, but that was partially offset
                                                                       by Qatar’s imports going up by a whopping 361
                                                                       percent. Saudi Arabia, the world’s largest arms
                                                                       importer, saw its weapons imports increase 61
                                                                       percent while Egypt, which is modernizing its
        Still in the                                                   naval forces, witnessed a 136 percent increase
                                                                       in imports. Turkey, which is building up domes-
                                                                       tic production of weapons, saw a fall of in 59
                                                                       percent in imports.

                                                                       Seizing Opportunities
                                                                       U.S. made arms remain the most desired in the
                                                                       Middle East, but countries in the region have
        Driver’s Seat   realized that they are significantly harder to buy
                                                                       than similar weapons from other countries such
                                                                       as China and Russia. While an arms sale involv-
         THE U.S. IS PULLING BACK FROM THE MIDDLE                      ing U.S. companies typically comes along with a
         EAST, BUT IT WILL STILL CONTINUE TO BE THE                    set of conditions regarding use that the buyer
                                                                       has to abide by, buying weapons from Russia
         PREDOMINANT ARMS SUPPLIER TO COUNTRIES                        and China is a relatively simpler process, with
         IN THE REGION                                                 the buyers free to use the weapon as they wish.
                                                                       This is one of the primary reasons why the two
                                                                       countries have managed to make significant
           Arun Sivasankaran                                           inroads into the region’s weapons market.

                                                                       A country that has shown an inclination toward
                                                                       Russian arms is Egypt. According to SIPRI, the
        Notwithstanding the fact that the United States is scaling back its  country’s arms imports rose by 136 percent
        military presence in the Middle East to focus on its power compe-  in 2016–2020 compared to the previous five-
        tition with near peer adversaries China and Russia, the country’s  year period and accounted for 5.8 percent of
        dominance of the arms market in the region is set to continue.  the global total. In the 2014-2017 period, the
                                                                       country spent around US$15 billion on arms
        Russian aggression against Ukraine, and the backlash that Moscow  imports, with Russia’s share of the imports
        is receiving for it, gives the U.S. a prime opportunity to further  constituting 60 percent. After the U.S. tem-
        consolidate its position as the preeminent arms supplier to the  porary withheld arms sales to Egypt following
        Middle East. Moscow has in recent years been open about its  the 2013 military coup, Russia stepped in and
        goal of increasing weapons sales to the region and has had con-  inked a comprehensive US$3.5 billion deal with
        siderable success as well; according to a Stockholm International  Cairo that included weapons, ammunition, and
        Peace Research Institute (SIPRI) report last year, about a third of  air defense systems. In March 2019, Moscow
        Russia’s recent arms exports were to Middle Eastern customers.  signed a US$2 billion contract with Egypt for
        With the U.S., EU, UK, Japan, Canada, Taiwan, and New Zealand  the supply of more than 20 SU-35 fighter jets.
        imposing sanctions on Moscow targeting banks, military exports,  China has been eager to latch on to oppor-
        and oil refineries, countries in the region are likely to stay away  tunities created by Washington’s reticence to
        from Russian arms, at least in the short term.                 sell armed drones to its partners in the region.

        34 | March 2022                                                            WWW .GBP .COM.SG/ ADT
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