Egypt Defense Market – Attractiveness, Competitive Landscape and Forecasts to 2025

The “Egypt Defense Market – Attractiveness, Competitive Landscape and Forecasts to 2025”, report provides the market size forecast and the projected Compound Annual Growth Rate (CAGR) for the next five years. The report covers the industry analysis including the key market drivers, emerging technology trends, and major challenges faced by market participants.

Scope

This report offers detailed analysis of the Egypt defense market with market size forecasts covering the next five years. This report will also analyze factors that influence demand for the industry, key market trends, and challenges faced by industry participants. In particular, it provides an in-depth analysis of the following:

The Egypt defense industry market size and drivers: detailed analysis of the Egypt’s defense industry during 2021–2025, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s expenditure and modernization patterns

Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country

Import and Export Dynamics: analysis of prevalent trends in the country’s imports and exports over the last five years

Market opportunities:list of the top ten defense investment opportunities over the next 5 years

Competitive landscape and strategic insights: analysis of the competitive landscape of the Egypt defense industry.

Key Highlights

Egypt’s total defense expenditure, including US military aid, valued US$5.7 billion in 2020 and is anticipated to post a forecast-period CAGR of 6.08% to reach US$6.9 billion in 2025. The country has undergone a period of political turmoil since January 2011 which began with the ousting of President Hosni Mubarak following 30 years of autocratic rule and ended in the nation’s first democratic elections which saw a new President being elected and deposed 13 months later.

Reasons to buy

Determine prospective investment areas based on a detailed trend analysis of the Egyptian defense market over the next five years

Gain in-depth understanding about the underlying factors driving demand for different defense and internal security segments in the Egypt market and identify the opportunities offered.

Strengthen your understanding of the market in terms of demand drivers, market trends, and the latest technological developments, among others

Identify the major threats that are driving the Indian defense market providing a clear picture about future opportunities that can be tapped, resulting in revenue expansion

Channelize resources by focusing on the ongoing programs that are being undertaken by the Egyptian government

Make correct business decisions based on in-depth analysis of the competitive landscape consisting of detailed profiles of the top defense equipment providers in the country. The company profiles also includes information about the key products, alliances, recent contract awarded, and financial analysis, wherever available.

Companies mentioned

Pilatus Group, Thales, RUAG, General Dynamics, Rheimtall, Meteolabor AG, Atos

Table of Contents

TABLE OF CONTENTS

1. Introduction 10

1.1. What is this report about? 10

1.2. Definitions 10

1.3. Summary Methodology 12

1.4. About GlobalData 13

2. Executive Summary 14

3. Market Attractiveness and Emerging Opportunities 18

3.1. Current Market Scenario 19

3.1.1. Primary Threat Perception 19

3.1.2. Military Doctrine and Strategy 22

3.1.3. Procurement Programs 25

3.1.4. Top Procurement Programs by Value (US$ Million), 2020–2025 27

3.1.5. Geopolitical, Social and Economic Scenario 28

3.1.6. Political and Strategic Alliances 29

3.2. Defense Market Size Historical and Forecast 33

3.2.1. Egyptian aggregate defense expenditure, inclusive of US military aid, is anticipated to post a CAGR of

7.43% over the forecast period 33

3.2.2. Egypt’s defense budget (excluding US military aid) is expected to increase at a CAGR of

7.67% over the forecast period 37

3.2.3. Perceived threats, military modernization, a strained relationship with Ethiopia, peacekeeping operations, Libyan intervention and domestic turbulence expected to drive the country’s defense expenditure 39

3.2.4. Defense expenditure as a percentage of GDP is anticipated to decline during 2021–2025 42

3.3. Analysis of Defense Budget Allocation 45

3.3.1. The country’s capital expenditure allocation is anticipated to increase over the forecast period 45

3.3.2. Egypt’s capital expenditure (excluding US Aid) is anticipated to record a CAGR of

7.72% over the forecast period 47

3.3.3. Key Trends of Egyptian Defense Market 51

3.3.4. Per capita defense expenditure to increase over the forecast period 54

3.4. Benchmarking with Key Global Markets 56

3.4.1. Egyptian defense expenditure expected to grow at a faster pace over 2021–2025 56

3.4.2. Egypt has a relatively small defense budget 58

3.4.3. Egypt allocates

1.3% of its GDP to defense 59

3.5. Market Opportunities: Key Trends and Growth Stimulators 60

3.5.1. Top Defense Market Sectors by Value (US$ Million) – Projections over 2020–2025 60

3.5.2. Multirole Aircraft 61

3.5.3. MBT (Main Battle Tank) 63

3.5.4. Airborne C4ISR 64

4. Defense Procurement Market Dynamics 65

4.1. Import Market Dynamics 67

4.1.1. Defense imports driven by regional security dynamics 67

4.1.2. France was the leading supplier of arms to Egypt during the historic period 68

4.1.3. Aircraft and naval vessels dominated defense imports 71

4.2. Export Market Dynamics 72

4.2.1. Defense exports from Egypt were negligible during the historic period 72

5. Industry Dynamics 73

5.1. Five Forces Analysis 73

5.1.1. Bargaining Power of Supplier: High 74

5.1.2. Bargaining Power of Buyer: Low 74

5.1.3. Barrier to Entry: Medium to High 74

5.1.4. Intensity of Rivalry: Low to Medium 74

5.1.5. Threat of Substitution: Medium 74

6. Market Entry Strategy 76

6.1. Market Regulation 76

6.1.1. Egypt has not disclosed any offset obligation 76

6.1.2. Defense procurements lack legitimate procurement laws 76

6.2. Market Entry Route 77

6.2.1. Budgeting Process 77

6.2.2. Procurement Policy and Process 78

6.2.3. Government-to-government agreements are the preferred market entry route for foreign OEMs 78

6.2.4. Technology transfer and license manufacturing agreements provide an attractive market entry route 79

6.3. Key Challenges 80

6.3.1. Corruption and lack of transparency 81

6.3.2. Political uncertainty and internal instability discourages foreign participation 82

6.3.3. Small defense budget and stalled EU military aid affect the defense industry 82

6.3.4. Tensions between US and Egypt due to the Russian deal 83

6.3.5. Impact of COVID-19 on the Egyptian Defense Industry 83

7. Competitive Landscape and Strategic Insights 84

7.1. Competitive Landscape Overview 84

7.1.1. Egyptian Market Share Analysis, 2020 87

7.1.2. Egyptian defense industry is predominantly state-run 89

7.2. Key Domestic Companies 91

7.2.1. Abu Zaabal Tank Repair Factory: Overview 91

7.2.2. Abu Zaabal Tank Repair Factory: Products and Services 91

7.2.3. Abu Zaabal Tank Repair Factory: Recent Announcements and Strategic Initiatives 91

7.2.4. Arab Organization for Industrialization – Engine Factory: Overview 92

7.2.5. Arab Organization for Industrialization – Engine Factory: Products and Services 92

7.2.6. Arab Organization for Industrialization – Aircraft Factory: Overview 93

7.2.7. Arab Organization for Industrialization – Aircraft Factory: Products and Services 93

7.2.8. Arab Organization for Industrialization – Sakr Factory: Overview 94

7.2.9. Arab Organization for Industrialization – Sakr Factory: Products 94

7.2.10. Arab Organization for Industrialization – Kader Factory: Overview 95

7.2.11. Arab Organization for Industrialization – Kader Factory: Products 95

7.2.12. Arab Organization for Industrialization – Electronics Factory: Overview 96

7.2.13. Arab Organization for Industrialization – Electronics Factory: Products 96

7.2.14. Arab British Dynamics Company: Overview 97

7.2.15. Arab British Dynamics Company: Products 97

7.2.16. Helwan Factory for Developed Industries: Overview 98

7.2.17. Helwan Factory for Developed Industries: Services 98

7.3. Key Foreign Companies 99

7.3.1. Lockheed Martin: Overview 99

7.3.2. Lockheed Martin: Products 99

7.3.3. Lockheed Martin: Recent Announcements and Strategic Initiatives 99

7.3.4. Lockheed Martin: Alliances 101

7.3.5. Lockheed Martin: Recent Contract Wins 102

7.3.6. Lockheed Martin: Financial Analysis 103

7.3.7. General Dynamics Corporation: Overview 105

7.3.8. General Dynamics Corporation: Products 105

7.3.9. General Dynamics Corporation: Alliances 107

7.3.10. General Dynamics Corporation: Recent Contract Wins 107

7.3.11. General Dynamic: Financial Analysis 108

7.3.12. Sikorsky Aircraft Corporation: Overview 110

7.3.13. Sikorsky Aircraft Corporation: Products 110

7.3.14. Sikorsky Aircraft Corporation: Recent Announcements and Strategic Initiatives 110

7.3.15. Sikorsky Aircraft Corporation: Alliances 111

7.3.16. Sikorsky Aircraft Corporation: Recent Contract Wins 112

7.3.17. Boeing: Overview 113

7.3.18. Boeing: Products 113

7.3.19. Boeing: Recent Announcements and Strategic Initiatives 113

7.3.20. Boeing: Alliances 114

7.3.21. Boeing: Recent Contract Wins 116

7.3.22. Boeing: Financial Analysis 117

7.3.23. Dassault Aviation: Overview 119

7.3.24. Dassault Aviation: Products 119

7.3.25. Dassault Aviation: Recent Announcements and Strategic Initiatives 119

7.3.26. Dassault Aviation: Alliances 121

7.3.27. Dassault Aviation: Recent Contract Wins 122

7.3.28. Dassault Aviation: Financial Analysis 123

7.3.29. Thales: Overview 125

7.3.30. Thales: Products and Services 125

7.3.31. Thales: Recent Announcements and Strategic Initiatives 127

7.3.32. Thales: Alliances 130

7.3.33. Thales: Recent Contract Wins 132

7.3.34. Thales: Financial Analysis 137

7.3.35. Naval Group: Overview 139

7.3.36. Naval Group: Products and Services 139

7.3.37. Naval Group: Recent Announcements and Strategic Initiatives 140

7.3.38. Naval Group: Alliances 141

7.3.39. Naval Group: Recent Contract Wins 142

7.3.40. United Aircraft Corporation: Overview 144

7.3.41. United Aircraft Corporation: Products 144

7.3.42. United Aircraft Corporation: Recent Announcements and Strategic Initiatives 144

7.3.43. United Aircraft Corporation: Alliances 147

7.3.44. United Aircraft Corporation (UAC): Recent Contract Wins 148

7.3.45. Sukhoi: Overview 150

7.3.46. Sukhoi: Products 150

7.3.47. Sukhoi: Alliances 151

7.3.48. Sukhoi: Recent Contract Wins 151

7.3.49. Uralvagonzavod: Overview 153

7.3.50. Uralvagonzavod: Products 153

7.3.51. Uralvagonzavod: Recent Announcements and Strategic Initiatives 153

7.3.52. Uralvagonzavod: Alliances 154

7.3.53. Uralvagonzavod: Recent Contract Wins 155

8. Business Environment 156

8.1. Economic Performance 156

8.1.1. Real GDP Growth 156

8.1.2. Nominal GDP Per Capita (US$) 157

8.1.3. Consumer Price Inflation (%) 158

8.1.4. Unemployment Rate (%) 159

8.1.5. Budget Surplus/Deficit (% of GDP) 160

9. Appendix 161

9.1. About GlobalData 161

9.2. Disclaimer 161

List of Tables

Table 1: Egypt – Ongoing Development and Procurement Programs 25

Table 2: Egypt – Future Procurement Programs 26

Table 3: Egypt – Top Defense Procurement Programs by Value (US$ Million), 2020–2025 27

Table 4: Egyptian Defense Cooperation 30

Table 5: Egyptian Military Training Exercises 32

Table 6: Egypt – Defense Expenditure Including US Aid, 2016–2025 33

Table 7: Egypt – Defense and Security Expenditure (EGP Billion and US$ Billion), 2016–2025 37

Table 8: Egypt’s GDP Growth vs Defense Expenditure as a Percentage of GDP, 2016–2025 42

Table 9: Egypt – Defense Budget Allocation for Capital and Revenue Expenditure (%), 2016–2025 45

Table 10: Egypt – Defense Capital Expenditure, Excluding US Aid (EGP Billion and US$ Million), 2016–2025 48

Table 11: Egypt – Defense Expenditure as Per Capita Defense Spend (US$), 2016–2025 54

Table 12: Benchmarking with Key Markets – 2016–2020 vs 2021–2025 56

Table 13: Top 10 Egyptian Defense Market Sectors by Value (US$ Million), 2020–2025 60

Table 14: Competitive Landscape of the Egyptian Defense Industry 84

Table 15: Top Defense Suppliers in the Egyptian Defense Industry – By Value (US$ Million) 2020-2025 88

Table 16: Abu Zaabal Tank Repair Factory – Products and Services 91

Table 17: Arab Organization for Industrialization – Engine Factory – Products and Services 92

Table 18: Arab Organization for Industrialization – Aircraft Factory – Products and Services 93

Table 19: Arab Organization for Industrialization – Sakr Factory – Products 94

Table 20: Arab Organization for Industrialization – Kader Factory – Products 95

Table 21: Arab Organization for Industrialization – Electronics Factory – Products 96

Table 22: Arab British Dynamics Company – Products 97

Table 23: Helwan Factory for Developed Industries – Services 98

Table 24: Lockheed Martin – Products 99

Table 25: Lockheed Martin – Alliances 101

Table 26: Lockheed Martin – Recent Contract Wins 102

Table 27: General Dynamics Corporation – Products 105

Table 28: General Dynamics Corporation – Alliances 107

Table 29: General Dynamics Corporation – Recent Contract Wins 107

Table 30: Sikorsky Aircraft Corporation – Products 110

Table 31: Sikorsky Aircraft Corporation – Alliances 111

Table 32: Sikorsky Aircraft Corporation – Recent Contract Wins 112

Table 33: Boeing – Products 113

Table 34: Boeing – Alliances 114

Table 35: Boeing – Recent Contract Wins 116

Table 36: Dassault Aviation – Products 119

Table 37: Dassault Aviation – Alliances 121

Table 38: Dassault Aviation – Recent Contract Wins 122

Table 39: Thales – Products and Services 125

Table 40: Thales – Alliances 130

Table 41: Thales – Recent Contract Wins 132

Table 42: Naval Group – Products and Services 139

Table 43: Naval Group – Alliances 141

Table 44: Naval Group – Recent Contract Wins 142

Table 45: United Aircraft Corporation – Products 144

Table 46: United Aircraft Corporation – Alliances 147

Table 47: United Aircraft Corporation (UAC) – Recent Contract Wins 148

Table 48: Sukhoi – Products 150

Table 49: Sukhoi – Alliances 151

Table 50: Sukhoi – Recent Contract Wins 152

Table 51: Uralvagonzavod – Products 153

Table 52: Uralvagonzavod – Alliances 154

Table 53: Uralvagonzavod – Recent Contract Wins 155

List of Figures

Figure 1: Egyptian Defense Budget: 2021 and 2025 14

Figure 2: Egyptian Defense Imports/Exports: 2015 and 2019 16

Figure 3: Egypt’s Top Prospective Procurements/Developments 18

Figure 4: Egyptian National Security Threats 21

Figure 5: Egypt’s Partner Countries for Defense Cooperation and Military Training 30

Figure 6: Egypt – US Military Aid (US$ Billion), 2016–2025 34

Figure 7: Egypt – Defense Expenditure Including US Aid (US$ Billion), 2016–2025 34

Figure 8: Egypt – Defense Budget Excluding US Aid (US$ Billion) vs Defense Budget Including US Aid (US$ Billion), 2016–2025 36

Figure 9: Egypt – Defense Budget (EGP Billion), 2016–2025 38

Figure 10: Egypt – Defense Budget (US$ Billion), 2016–2025 38

Figure 11: Egypt’s GDP Growth vs Defense Expenditure as a Percentage of GDP, 2016–2025 44

Figure 12: Egypt – Defense Budget Allocation for Capital and Revenue Expenditure (%), 2016–2025 46

Figure 13: Egypt – Defense Capital Expenditure, Excluding US Aid (EGP Billion), 2016–2025 48

Figure 14: Egypt – Defense Capital Expenditure, Excluding US Aid (US$ Million), 2016–2025 50

Figure 15: Egypt –Defense Expenditure as Per Capita Defense Spend (US$), 2016–2025 55

Figure 16: Benchmarking with Key Markets – 2016–2020 vs 2021–2025 57

Figure 17: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2020 and 2025 58

Figure 18: Countries with the Largest Defense Expenditure as a Percentage of GDP (%), 2020 59

Figure 19: Egyptian Multirole Aircraft Market Size (US$ Million), 2020–2025 62

Figure 21: Egyptian Main Battle Tank Market Size (US$ Million), 2020–2025 63

Figure 20: Egyptian Airborne C4ISR Market Size (US$ Million), 2020–2025 64

Figure 22: Top Egyptian Defense Procurements in Terms of Their Supplier Relationships 66

Figure 23: Egypt – Defense Imports Trend (US$ Million), 2015–2019 67

Figure 24: Egypt – Defense Imports by Country (%), 2015–2019 70

Figure 25: Egypt – Imports by Weapons Type (%), 2015–2019 71

Figure 26: Egypt – Defense Industry Dynamics 73

Figure 27: The Egyptian Budgeting Process 77

Figure 28: Key Challenges in the Egyptian Defense Market 80

Figure 29: Egyptian Market Share Analysis, 2020 87

Figure 30: Lockheed Martin – Revenue Trend Analysis (US$ Billion), 2015–2019 103

Figure 31: Lockheed Martin – Operating Profit Trend Analysis (US$ Billion), 2015–2019 104

Figure 32: Lockheed Martin – Net Profit Trend Analysis (US$ Billion), 2015–2019 104

Figure 33: General Dynamics – Revenue Trend Analysis (US$ Billion), 2014–2018 108

Figure 34: General Dynamics – Operating Profit Trend Analysis (US$ Billion), 2015–2019 109

Figure 35: General Dynamics – Net Profit Trend Analysis (US$ Billion), 2015–2019 109

Figure 36: Boeing – Revenue Trend Analysis (US$ Billion), 2015–2019 117

Figure 37: Boeing – Operating Profit Trend Analysis (US$ Billion), 2015–2019 118

Figure 38: Boeing – Net Profit Trend Analysis (US$ Billion), 2015–2019 118

Figure 39: Dassault Aviation – Revenue Trend Analysis (EUR Billion), 2015–2019 123

Figure 40: Dassault Aviation – Operating Profit Trend Analysis (EUR Million), 2015–2019 124

Figure 41: Dassault Aviation – Net income Trend Analysis (EUR Million), 2015–2019 124

Figure 42: Thales – Revenue Trend Analysis (EUR Billion), 2014–2018 137

Figure 43: Thales – Operating Profit Trend Analysis (EUR Billion), 2014–2018 138

Figure 44: Thales – Net Profit Trend Analysis (EUR Million), 2014–2018 138

Figure 48: Egyptian Real GDP Growth (%), 2016–2025 156

Figure 48: Egyptian Nominal GDP Per Capita (US$), 2015–2025 157

Figure 48: Egyptian Consumer Price Inflation (%), 2016–2025 158

Figure 48: Egyptian Unemployment Rate (%), 2016–2025 159

Figure 48: Egyptian Budget Surplus/Deficit (%), 2016–2025 160

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