Lebanon's Defense Expenditure Expected to Post Steady Growth During the Forecast Period, According to a New Study on ASDReports

Monday 4 August 2014, Amsterdam

Lebanon, one of the poorer countries in the Middle East region in terms of natural resources, is mired by cross border violence, internal extremism, and hostile neighbors. The country’s weak economic condition affected its defense capabilities, resulting in a volatile security situation for the past two years. Spillover of violence across its borders has put pressure on its government to prioritize military modernization during the review.

Consequently, the Lebanese military expenditure registered a growth rate of 12.46% in the last five years and expected to grow at a CAGR of 5.66% over the forecast period. The country’s capital expenditure, which values US$110 million in 2013, is projected to reach US$150 million by 2018, according to the new report.


This report provides in depth analysis of the Lebanese 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 Moroccan defense industry, and its assessment of the business environment, Future of the Lebanese 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 factor will drive the country’s defense expenditure over the forecast period:

Cross border violence:

Lebanon, which shares borders with Israel and Syria, is stalled by cross border violence on both sides. It maintains an open border policy with Syria, which is going through political turmoil, resulting in an increased burden of one million Syrian refugees on its economy and security forces. Lebanon had a long history of sectarian violence, which is now being fuelled again by cross border insurgency.

Sectarian violence and drug trafficking will be the key factors driving homeland security

The following factors are expected to be primary drivers of the country’s homeland security:

Sectarian violence:

Lebanon is still recuperating from a long civil war and Israeli occupation. The country’s population consists of four major religious groups: Christians, Druze, Sunni Muslims, and Shia Muslims. Conflicts between these groups over political power and government formation led to a 15 year long civil war in the country, lasting from 1975 to 1990. In addition, southern parts of the country are home to large groups of Palestinian refugees, who fled neighbouring territories controlled by Israel. Moreover, the Israeli occupation of South Lebanon until 2000 resulted in the emergence of the political armed group Hezbollah, which has its political representatives in Lebanon’s Parliament. An influx of refugees fleeing Syria have added to the complexity of Lebanon’s internal security challenges and fuelled the sectarian violence. These factions have pose serious threats to the government’s control on its territories and contributed to the troubled security situation in the country.
 

Drug trafficking:

Drug trafficking is prevalent in Lebanon due to its strategic geographical location as a link to several other states including Syria, Turkey, and Iran. Due to the heightened security in Asian countries, including India and Pakistan, which served as the initial route for drug trafficking, Lebanon has now emerged as the new transit corridor for smuggling. The small defense budget has caused a limitation for the procurement of basic prevention elements at the border.
 

Reasons to Buy:

• Facilitates clear understanding of market opportunities and entry strategies to gain or grow market share in the Lebanese defense industry.  
• Provides a comprehensive understanding of the competitive landscape of the market, including key domestic and foreign defense companies, key alliances, and strategic initiatives.
• Offers a clear understanding of market drivers, and actionable insight on forthcoming developments that will shape the landscape of opportunity for the foreseeable future.