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$16bn ANNUAL BOOST

Saudi world's 4th biggest defence spender

Kuwait, June 11, 2014

Saudi Arabia has emerged as the world’s fourth largest spender on national defence with the kingdom increasing its annual defence expenditure by $16 billion over the last five years, said a report.

Saudi’s increasing defence budget is tied to new capital programs including new and re-fitted F-15 fighter aircraft totaling nearly $30 billion, according to Deloitte in its new annual report, “Global Defence Outlook 2014.”  

The other Middle East countries in the 'Top 50' global spenders league include the UAE, Oman, Iraq, Kuwait, and Egypt, stated

The Deloitte report specifically takes an indepth look at defence ministries of 50 nations whose total publicly-acknowledged spending on national defence accounts for more than 92 per cent of global defence outlays.

According to Deloitte, six nations – the US, China, Russia, Saudi Arabia, Japan and France - generate 60 per cent of global defence spending and adaptation, collaboration and investment are predicted to be the top-priority for defence management strategies in the coming years.  

Fundamental shifts in defence policies around the world are occurring: Russia’s moves in Crimea, Japan’s efforts to revitalize its defence, China’s military buildup, and US debates over post-war defence spending, will all continue to have a significant effect on global defence spending, stated the report, which examines trends, policies and key drivers in the current shift in defence spending.

The report said that from 2008 to 2013, Saudi Arabia increased its annual defence expenditure by $16 bilion, following China's $60 billion and Russia $21 billion spending boost.

The largest drop was in the US, which reduced its annual defence spending by $53 billion over the same period, the report stated. According to experts, there has been a major shift in the global balance of military power with the West trimming its defence budget and Asian and Middle Eastern countries boosting their expenditure.

According to Deloitte, out of the 25 top nations with the highest per capita income, Kuwait, Australia, Singapore and Japan were the only ones who have not signaled that defence spending will decline or remain flat over the next two to five years.
    
Of the 25 lowest-income members of the Top 50 spenders in the world, Saudi Arabia, Iraq, Oman, Algeria and Morocco along with Angola, Azerbaijan, Colombia, Pakistan, Russia and Ukraine are all increasing their annual defence spending in the same 2-5 year period.

The report pointed out that the largest absolute defence budget increases worldwide are likely to come from the BRIC countries of Brazil, Russia, India and China.
 
Asian giants China and India along with Brazil and South Korea comprise 70 per cent of total defence spending among the lower-income economizers, it added.-TradeArabia News Service




Tags: Saudi | Budget | Spending | defence |

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