Effects Of The Arab Spring On The Defense Sector.

The emotional and controversial adjustments to our national defense priorities along with budgetary pressures have been of concern to the Defense Industry, not just in the United States but across the globe; leaving the industry looking towards the Middle East for sustainment. However, what were once economies with double-digit compounded annual growth rates will most likely pass on significant defense spending until those economies have recovered. Single digit growth in defense spending in the region will, baring unforeseen circumstances, remain uncharacteristically low into the foreseeable future. With exception of the UAE, Saudi Arabia, Jordan and the more stable states, the rest of Northern Africa will not be available to save the day. If the industry is to remain viable COTS is the name of the game and you’ll have to drive demand by targeting specific requirements.

I’ll have much more to come on this topic as the year progresses.

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