Threats and Attacks from Domestic Terrorist Groups Helps Drive the Kazakh Defense Industry, According to a New Study on ASDReports

Monday 4 August 2014, Amsterdam

The threats of attack from domestic terrorist groups have triggered increased expenditure on counter-terrorism and counter-insurgency efforts. Another major factor driving the country‘s future defense expenditure is Kazakhstan‘s efforts to upgrade military equipment acquired from the Soviet Union in the past.

Over the forecast period, the defense budget is projected to increase from US$2.7 billion in 2014 to US$3.7 billion by 2018, at a CAGR of 8.13%. However, as a percentage of GDP, defense expenditure is forecast to drop from 1.2% in 2014 to 1.1% in 2018 according to the new report.

This report provides in depth analysis of the Kazakh defense market, with identification of market drivers augmenting its provision of data on the current industry size and growth expectations to 2018. Together with its investigation of the industry structure and procurement dynamics, with analysis of the competitive landscape of the Kazakh defense industry, and its assessment of the business environment, Future of the Kazakh Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018 should be considered the definitive guide to the Iraqi defense market, and required reading for those serious about capitalizing on the significant opportunities it holds.


KEY MILITARY MARKET DRIVERS

The following factors will drive the country’s defense expenditure over the forecast period:
 

Military Modernization:

Kazakhstan‘s inventory of artillery and ammunitions was inherited from the Soviet Union after it was dissolved in 1991. These Soviet-made command, control, communications, and intelligence systems, coupled with aged vehicles and machinery, severely limits Kazakhstan‘s armed forces‘capabilities and requires significant upgrading and replacement. However, the country was unable to opt for an equipment modernization program in the 1990s and early 2000s owing to inadequate funding.


With a steady increase in its defense budget in the last couple of years, the country is expected to spend a considerable amount on military modernization. The expenditure will be directed towards the introduction of automated command and control (C2) systems within the military, upgrading military equipment, enhancing air and missile defense systems, modernizing its arms and ammunitions inventory, intensifying the combat training of soldiers and setting up advanced military infrastructure.


Growing threat from domestic terrorism:

Kazakhstan's social and political picture has suffered a blow over the last couple of years, owing primarily to frequent attacks by domestic terrorist groups. The presence of terrorist networks within the country came to the forefront over the last decade with the attacks in May 2011, when a suicide bomber blew himself up in front of the Committee of National Security building in the city of Aktyoubinsk, and an explosive laden truck flared up in front of the National Security Committee of Kazakhstan (NSC)‘s headquarters in Astana. Following this, the occurrences of terrorist outbreaks have accelerated significantly across Kazakhstan. While two police officers were killed by armed gunmen at the border police patrol in the Aktobe region, the attacks by the suspected terrorist Maksat Kariev in the city of Taraz killed seven people and injured three.


In 2012, the corpses of 14 border guards and one local citizen were discovered at the border mobile checkpoint in Argkankergen. Another explosion in the Alma-Ata district resulted in seven casualties and the discovery of numerous weapons and ammunitions.

To deal with these threats, the Kazakh government has introduced a number of amendments in the counter-terrorism law, whereby a Counter-terrorism Center and Counter-terrorism Commission will be set up over the next few months to prevent propaganda of radical Islamism within the public. Furthermore, the government is expected to embark on a broad counter-terrorism strategy of vigilant security measures, regional and international cooperation, and counter-radicalization policies, in addition to procuring equipment such as bomb detectors, surveillance and reconnaissance systems, and UAVs.


Reasons to buy:

• Understand the current trends analysis of imports and exports, together with their implications and impact on the Kazakh defense industry.
• Understand the competitive landscape of the defense industry in Kazakhstan and  an overview of key defense companies, both domestic and foreign, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
• Identify possible ways to enter the market, together with detailed descriptions of how existing companies have entered the market, including key contracts, alliances, and strategic initiatives.
• Confidently update your strategic and tactical plans based on a proper understanding of the future pattern of market trends from winners and losers to category dynamics.