Qatar’s annual defence expenditure stands at $4.4bn in 2016 and is estimated to reach $4.9bn in 2021, increasing at a compound annual growth rate of 1.82%, according to a report by Strategic Defence Intelligence (SDI).

Titled ‘Future of the Qatari Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2021’, the report analyses the current and future trends of Qatari defence sector.

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The nation’s capital expenditure allocation is $1.1bn in 2016, which is expected to grow at a CAGR of 6.65%, to reach $1.6bn in 2021. The defence expenditure is likely to be driven by the military modernisation, the arms race in the Middle East region, and a possible security threat from terrorism.

"The Qatari Defence Ministry is anticipated to acquire attack and multi-utility helicopters, missile defence systems, fighter aircraft, main battle tanks, and early warning radar systems."

The Qatari Defence Ministry is anticipated to acquire attack and multi-utility helicopters, missile defence systems, fighter aircraft, main battle tanks, and early warning radar systems. The Ministry also plans to procure cameras, wireless systems, airport security, biometric systems, video-surveillance systems, training, and cyber security software to facilitate the hosting of soccer World Cup 2022.

The nation relies on foreign original equipment manufacturers (OEMs) to source advanced defence systems, as the domestic defence industry lacks production know-how to meet the needs of modern defence equipment and systems.

Qatar currently imports more than 70% of its defence equipment from the US manufacturers. The nation, however, intends to source equipment from Germany, Italy and France for reducing dependency on a single country.