SecurityWorldMarket

18/01/2015

Security market in Saudi Arabia to show growth of 11.35% to 2018

Analysts forecast that the Security sector in Saudi Arabia will grow at a CAGR of 11.35 percent over the period 2013-2018.

Analysts from research company Companiesandamarkets have recognised the following companies as the key players in the Security Sector in Saudi Arabia: BAE Systems, Boeing Co., General Dynamics Corp., Lockheed Martin Corp. and Raytheon Co. Other Prominent Vendors in the market are: Advanced Electronics, Alsalam Aircraft, EADS, Northrop Grumman, Sikorsky Aircraft and Thales.

One major trend emerging in the market according to the report is the high investment in safety and security equipment. As the defense budget of Saudi Arabia is increasing significantly, its foreign collaborations for military affairs are also increasing. Saudi Arabia imports defense equipment mainly from the US, Russia, France, and the UK

One of the major drivers in the market is the flourishing economy and infrastructure. The majority of Saudi Arabia's revenue is dependent on oil exports; therefore, its economy is financially strong. A flourishing economy mandates the need for security, which drives the country to invest extensively in the import of defense equipment.

Further, one key challenge faced by the market is the high dependence on imported equipment. Most of the defense equipment and security systems and weapons in Saudi Arabia are imported from the US, Russia, France, and the UK. This dependency can affect the growth of the Security sector in the Kingdom of Saudi Arabia through delays, price hikes, or even small political issues between the countries.

Saudi Arabia is one of the world's fastest growing markets for safety and security solutions. According to Companiesandmarkets Saudi Arabia has invested a huge amount of money for the safety and security of the nation as the government's major concern is to protect the country from terrorism. The country has also invested a huge amount of money to import weapons from countries such as the US, Russia, France, and the UK, which is expected to grow further.


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