Gulf Cooperation Council's Defense Industry Report 2024: Israel-Hamas Conflict and Iran's Retaliatory Missile and Drone Attacks Call for GCC Stronger Collaboration and Upgrading Military Capabilities - ResearchAndMarkets.com

The "Seizing Localization Opportunities in the Gulf Cooperation Council's Defense Industry" report has been added to ResearchAndMarkets.com's offering.

The aerospace and defense (A&D) industry in the Gulf Cooperation Council (GCC) countries is experiencing transformative changes due to regional security dynamics and strategic economic initiatives. Heightened tensions in the Middle East and the increased threat of a region-wide conflict-evinced by the 2023 Israel-Hamas conflict and Iran's retaliatory missile and drone attacks-call for GCC states' stronger defense collaboration and upgrading military capabilities. Additionally, the security threats in the Red Sea, with Houthi rebel attacks on commercial vessels, underscore the urgent need for enhanced maritime defense against Iran's proxy groups, emphasizing the pressing requirement for robust defense measures.

The region's A&D sector features notable trends that are reshaping its trajectory. The most important trend is the strategic emphasis on achieving self-reliance in defense due to geopolitical imperatives and a desire for increased autonomy in safeguarding national security interests. There is a concerted effort to leverage the A&D industry as a catalyst for wider economic diversification, recognizing its potential to stimulate growth, create employment opportunities, and foster technological innovation within the region. Furthermore, the favorable economic environment, with stable investment climates and growing global demand for defense products and services, presents compelling prospects for export-oriented growth strategies.

The business environment in the GCC is dominated by large, family-owned industrial conglomerates that have diversified industrial portfolios. These family groups present significant prospects for advancing the GCC's A&D sector. Analyzing their involvement in various industries, existing manufacturing capabilities, and any current defense-related activities reveals how their capabilities align with potential opportunities within the A&D supply chain. Strategic pathways for these family groups to enter the A&D sector include extending existing commercial maintenance, repair, and overhaul (MRO) services to the military, manufacturing Tier III and Tier II components using existing or upgraded facilities, expanding capabilities through new entities and acquisitions, and forming joint ventures with foreign OEMs to localize manufacturing via technology transfer.

Overall, the GCC's A&D industry holds substantial growth opportunities, aligning with the region's broader vision of economic diversification and strategic advancement. Recommendations for both OEMs and family groups highlight the potential for collaborative efforts to enhance the sector's development.

Growth Opportunity Universe

• Extending Existing Capabilities to Provide MRO, Components, and Base Materials for A&D OEMs
• Investing in New Capabilities to Diversify into the A&D Supply Chain
• Developing Turn-key Platforms and Solutions in A&D at the System and Subsystem Levels

Key Topics Covered:

Strategic Imperatives

• Why is it Increasingly Difficult to Grow?
• The Strategic Imperative
• The Impact of the Top 3 Strategic Imperatives on the Gulf Cooperation Council's Aerospace and Defense Industry
• Growth Opportunities Fuel the Growth Pipeline Engine

Growth Opportunity Analysis

• Introduction - Current Situation and Vision 2030
• Growth Drivers
• GCC Governments Drive Self-reliance in Defense and Grant It Strategic Importance
• Several A&D Opportunities Are a Logical Extension of the Industrial Capabilities of Many Family Groups
• The A&D Sector Is a Promising Vehicle for the GCC's Economic Diversification Agenda
• There Is a Favorable Economic Environment for Export-driven Growth Opportunities
• Growth Restraints
• The GCC Has a Relatively Underdeveloped Industrial Base, Especially in High-tech Manufacturing Sectors
• Skilled Technical Personnel and Experienced R&D Professionals are Scarce in the GCC

Capability Analysis of Family Groups

• Zamil Group - Timeline
• Zamil Group - Profile
• Zamil Group - Prospects for Diversification into A&D
• Suhail Bahwan Group - Timeline
• Suhail Bahwan Group - Profile
• Suhail Bahwan Group - Prospects for Diversification into A&D
• Juffali Group - Timeline
• Juffali Group - Profile
• Juffali Group - Prospects for Diversification into A&D
• Zahid Group - Timeline
• Zahid Group - Profile
• Zahid Group - Prospects for Diversification into A&D
• Al Ghurair Group - Timeline
• Al Ghurair Group - Profile
• Al Ghurair Group - Prospects for Diversification into A&D
• Al Khorayef Group - Timeline
• Al Khorayef Group Profile
• Al Khorayef Group - Prospects for Diversification into A&D

Diversification Strategy Analysis

• Key Opportunities for Family Groups - New Capability Development
• Key Opportunities for Family Groups - Existing Capability Extension
• Key Opportunities for Family Groups - New Product Development
• Key Opportunities for Family Groups - Services Development and Offset Partnerships
• Diversification Strategy 1 - Outsourced Manufacturing of Components Using Existing or Upgraded Facilities
• Diversification Strategy 2 - Expanding New Capabilities, Setting Up New Entities, and Acquiring Existing Firms
• Diversification Strategy 3 - Establishing JVs with Foreign OEMs is Ideal for Localizing Manufacturing through Technology Transfer
• Diversification Strategy 3 - Examples of JVs between Local Partners and OEMs

Appendix

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