Gulf military spending to hit $100bn by 2019

A leading defence analyst company expects Gulf states to increase their defence spending to some $100 billion by 2019.

According to a new report published by Jane’s by IHS Markit yesterday, the six Gulf Cooperation Council (GCC) countries registered a six per cent growth in military spending in 2018.

“The six per cent growth that we’ve seen this year is expected to slow, but growth rates of three to four pe rcent a year are sustainable over the next decade, meaning that defence spending is likely to hit a record $100bn next year,” Jane’s analyst Craig Caffrey said.

“If we see any significant increases in oil prices we will probably see further growth or, at the very least, more procurement activity,” he added.

According to the report, spending by the GCC countries will continue to increase in the next five years, reaching some $117 billion by 2023.

Middle East conflicts

A major driving factor for the spending has been the GCC countries’ involvement in the conflicts in Syria, Iraq and Yemen. The blockade of Qatar, led by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt, over allegations that Doha supports terrorism has also led to a frenzy in defence procurement. Qatar has denied the allegations as baseless, and purchased superior military equipment after it intercepted intelligence that Saudi Arabia planned to send ground troops in to its territory with support from the UAE.

Despite Europe and the US being the main defence equipment providers across the GCC, new suppliers have been sought recently such as Russia, China and Turkey.

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