Afghan Defense Expenditure to Be Us$13 B Cumulatively by 2019, According to a New Study on ASDReports

Tuesday 5 August 2014, Amsterdam

Gain valuable insights into the Defense Industry in this key geography with the new report now available on ASDReports. This report that provides readers with a detailed analysis of both historic and forecast Afghan defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.

The difference:

• Have a little confidence – with market size forecasts covering the next five years along with an analysis of factors that influence demand for the industry.
• Know your Competition – with an overview of key players, together with insights such as key alliances, strategic initiatives, challenges faced by industry participants and a brief financial analysis.
• Keep one step ahead – with detailed analysis of the Afghan defense industry until 2019, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country’s spending patterns and modernization patterns

Report Highlight:

Afghanistan is emerging as one of the most riveting defense markets in Central and South Asia. The US invasion of the country after the September 2011 attacks led to the formation of a democratic government which is now laying significant emphasis on the total revamp of national infrastructure and the defense industry. The objective to have a strong, efficient and well-equipped armed force that is capable of countering the Taliban insurgency and rendering strong public security are the prime drivers of the Afghan government‘s investment towards the defense sector.

Afghanistan‘s efforts to boost its combat readiness can be attributed to the threats rising from the Taliban‘s frequent attacks and illegal drug traders. However, the turmoil in the country has hampered its defense industrial capability, making the country reliant on imports. US arms suppliers have dominated the imports in the last decade, accounting for more than 75% of total arms imports during the period 2009-2013. Afghanistan also purchased a large number of military equipment including aircraft, helicopters, and guns from countries such as Russia and Italy during this period.

The Afghan defense sector is bruised by deep-rooted and widespread corruption and malpractices across all levels that act as major roadblocks for foreign companies interested in entering into contracts with the nation. Unfair dealings in contract awards, delays in the execution of deals, and corrupt officials deter foreign firms from entering into the sector. Additionally, the limited defense budget and lack of skilled labor limit the opportunities for foreign defense companies to cater to the market.