Kuwait Defence & Security Report 2016 - New Market Report

From: Fast Market Research, Inc.
Published: Thu Apr 28 2016


Though Kuwait's state revenues are feeling the effects of low oil prices , we forecast defence expenditure in the country to return to growth in 2016 amid growing security threats from Islamist extremism and sectarian tensions, both internally and externally. In addition to the national defence budget, the Kuwaiti parliament has approved USD10bn in defence modernisation funding over the next decade, covering the procurement of products such as fighter jets, tanks and air defence systems. Due to the highly limited size and capability of Kuwait ' s defence manufacturing base, such equipment will need to be sourced from abroad. We expect this to remain the case throughout the next decade, as government investment and foreign involvement in the domestic sector remains low. For these same reasons, Kuwait ' s defence exports will be negligible.

Full Report Details at
- http://www.fastmr.com/prod/1152854_kuwait_defence_security.aspx?afid=301

Recent Developments:

The Kuwaiti parliament in January 2016 announced it had approved an additional USD10bn in funding for defence modernisation over the next 10 years. Drawn from state reserves, this will be and used for the procurement of equipment such as fighter jets, tanks and air defence systems.

Kuwait Times reported in April 2015 that in order to ensure sufficient levels of personnel for the military, the country's National Assembly had passed a law to reinstate compulsory military service for men from 2017 onwards.

In early March 2016, Kuwait's parliament approved the purchase of 22 single-seat and six twin-seat Eurofighter Typhoon combat aircraft.

Abu Dhabi Shipbuilding announced in January 2016 that the Kuwaiti defence ministry had placed a USD71mn order for eight landing craft and high-speed protection vessels.

In October 2015, France and Kuwait signed a letter of acceptance (LoA) covering the latter's USD1.1bn order of Airbus Caracal helicopters. In addition, Kuwait signed LoAs with France for mid-life upgrades of its eight P37 fast attack craft, and delivery of 120 Renault Trucks Defence Sherpa light armoured 4x4 vehicles - as well as another protected vehicle model from the same company. The country will be ordering various missiles to equip the abovementioned vessels and helicopters.

In September 2015, Saab delivered an integrated chemical, biological, radiological, nuclear detection system to Kuwait.

In June 2015, Kuwait placed an order for 12 nuclear, biological, and chemical reconnaissance vehicles from Germany-based Rheinmetall MAN Military Vehicles.

In its World Report 2016, Human Rights Watch stated that the Kuwaiti government had 'aggressively cracked down on free speech throughout 2015'.

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