The Middle East is a strategic region for the arms market, with massive investment and major geopolitical challenges. Detailed analysis.

In brief

The Middle East plays a crucial role in the global arms market, accounting for around 35% of global arms imports. Geopolitical tensions, a wealth of energy resources and strategic alliances all contribute to an increased demand for sophisticated weapons systems, from missiles to fighter jets. The region is seeing massive investment in the modernisation of its armed forces, often driven by security concerns and ambitions for regional power.

The strategic and economic importance of the Middle East for the arms market

The Middle East is a key player in the global arms market. In 2022, the region will account for around 35% of global arms imports, according to a report by the Stockholm International Peace Research Institute (SIPRI). This is a significant share, especially when we consider other regions such as Asia-Pacific and Europe, which together account for a smaller share of this global market.

The countries of the Middle East, with their wealth of oil and gas resources, often have substantial defence budgets. In 2022, for example, Saudi Arabia spent around €55 billion on defence, making it one of the world’s biggest arms consumers. This sum represents around 8% of its GDP, underlining the crucial importance of defence as a national priority.

The acquisition of sophisticated military equipment, ranging from F-35 fighter jets to missile defence systems such as THAAD and Patriot, is commonplace. The United Arab Emirates, for example, has invested more than €3 billion in air defence systems and combat aircraft. This constant demand stimulates not only the economies of arms-supplying countries such as the United States, France and Russia, but also local industries seeking to develop production and maintenance capabilities.

Geopolitical tensions as a driver of demand for armaments

Geopolitical tensions in the Middle East are playing a crucial role in the increased demand for arms. The civil war in Syria, the conflicts in Yemen and the rivalries between Iran and its neighbours, notably Saudi Arabia and Israel, have exacerbated the need for sophisticated weaponry. For example, the war in Syria saw a 70% increase in arms deliveries to the warring parties between 2011 and 2016, according to SIPRI.

Saudi Arabia, which shares a border with Yemen, has significantly boosted its military capabilities in response to perceived threats. In 2020, the country signed a €12 billion contract with the United States to purchase Patriot missiles and F-15 aircraft. This type of contract underlines not only the desire of these countries to strengthen their security, but also their commitment to an arms race.

The impact of these tensions on the global market is twofold: on the one hand, it stimulates the production and export of arms; on the other, it poses challenges to stability and international security. According to SIPRI, arms exports to these countries rose by 45% between 2015 and 2020, illustrating sustained and growing demand for advanced defence technologies.

The evolution of strategic alliances and partnerships

Strategic alliances and partnerships in the Middle East also influence the arms market. Defence agreements between the United States and the Gulf states, for example, have enabled the rapid modernisation of these nations’ armed forces. In 2019, the United States sold €23 billion worth of military equipment to Saudi Arabia, including air defence systems and Apache helicopters.

In addition, military cooperation between Gulf countries and other regional or global powers, such as France, Russia or China, is booming. For example, France signed a €10 billion contract in 2016 to supply Rafales to Egypt. This contract represents not only a breakthrough for the French defence industry, but also strategic support for Egypt in its military build-up.

Military cooperation agreements also include technology transfers, joint training and the creation of foreign military bases, such as the US bases at Al-Udeid in Qatar and in Saudi Arabia. These bases play a key role in regional stability and power projection, directly influencing market dynamics.

Economic challenges and international pressure

However, this arms race is not without its challenges. High defence budgets can lead to internal economic tensions, especially when national economies are heavily dependent on oil revenues. For example, falling oil prices in 2014 led several Gulf countries to reassess their defence budgets. Saudi Arabia, for example, saw its oil revenues plummet, leading to a 20% cut in defence spending in 2015.

In addition, international pressures and regulations, such as embargoes or export controls, can restrict the purchasing capacity of some countries. The embargo imposed by the European Union and the United States on certain arms sales to Iran and Syria, for example, has limited these countries’ access to advanced technologies.

The impact of the modernisation of armed forces on the global market

The modernisation of armed forces in the Middle East is also having a significant impact on the global arms market. Countries in the region are investing massively in cutting-edge technologies such as drones, electronic warfare systems and ballistic missiles. Saudi Arabia, for example, has acquired THAAD missile defence systems, worth €10 billion, to strengthen its defence against ballistic threats.

The aim of this modernisation is not only to strengthen national security, but also to improve the country’s power projection capability. The Gulf states are seeking to diversify their armed forces, integrating more sophisticated systems and developing local production capabilities. For example, the United Arab Emirates has invested in the development of combat drones, working with international companies to develop local technologies.

A dynamic and complex market

The Middle East remains a central player in the global arms market, influencing security and defence dynamics on a global scale. Massive investment in military modernisation, strategic alliances and regional tensions will continue to shape this market. Countries in the region must navigate between economic challenges, international pressures and the need to strengthen their defence capabilities, creating a complex and dynamic environment for players in the arms market.

Want to fly a fighter jet ? Get in touch.