SecurityWorldMarket

05/03/2015

Jordan to increase security and defense spending to $2.8 Bn

Willamstown, Ma (USA)

Amid regional instability, Jordan remains a key U.S. ally and a recent report from Fast Market Research and by Business Monitors International (BMI) expects this defence relationship to develop further over the course of 2015. As defence budgets tend to grow amidst increased threat perceptions, for 2015, the analysts forecast Jordan's defence expenditure to grow at annual rate of 9.7% to bring spending to USD 2.8 bn despite stagnation in the wider economy.

BMI determines an overall upward trend in the annual rate of growth in Jordan's defence expenditure. Analysts believe that spending may be boosted by a substantial increase in U.S. military aid to Jordan currently under discussion in the Congress. The report notes that in the short to medium term manpower as a percentage of the overall population is decreasing, but that in the long term it is likely to experience an upward trend.

Jordan's security threats continue to stem primarily from the regional level. Researchers think that the Palestinian-Israel conflict remains Amman's primary concern and point to deteriorating relations with Israel. On the other hand, relations with Baghdad are improving, in part out of shared interests, particularly the threat of retaliation by the Islamic State within the Hashemite Kingdom because of its participation in the international anti-Islamic State coalition.

Overall, Jordan's security risk index remains relatively good. For the coming year, the analysts have awarded it a score of 74, which is a reduction of just 1 point on 2014, and 4 points on 2013. This reduction must be reviewed in light of the current crises plaguing its neighbouring states, Iraq and Syria. From 2007 through to 2015, its average index score is 73, considered to be a higher medium level of security.

The Jordan Defence & Security Report features Business Monitor International (BMI)'s independent forecasts for national and international security, the defence industry, military expenditure, employment in arms production, and arms imports and exports, as well as examining industry trends and prospects, national and multinational arms producers and the regulatory environment.

BMI's Jordan Defence & Security Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Jordanian defence and security industry.

The domestic security overview within the report lists the various potential internal security threats facing a country, ranging from internal security issues such as terrorism, cyber terrorism, crime and drugs, to external security issues including general defence procedures and potential threats from specific countries. The reports also provide a regional overview which details specific issues and flashpoints affecting the Americas, along with potential risks in the coming year.

Analysts and researchers have also examined the competitive positioning and short- to medium-term business strategies of key industry players in the report. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.



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