The latest research and expectations, issued by Market Attractiveness, Competitive Landscape and Forecasts, said that Algeria with a defense budget of US$10.3 billion, in 2017, has been classified as the largest military spender in the African region and the world’s tenth largest defense importer of military goods.
Research clarified that Military expenditure is strongly supported by the presence of the oil and natural gas industry in the country, where the revenues are directed towards boosting defense and security.
The country’s capital expenditure is expected to grow at a robust CAGR of 9.48% during the forecast period 2017 to 2022.
The Algerian Government is expected to procure replacement air refueling tankers, transport aircraft, multi role fighters, armored vehicles, corvettes, and frigates, among others.
Moreover, opportunities in security systems and platforms such as unmanned aerial vehicles (UAV), thermal imaging sensors, motion sensors, alarms, and radar systems are expected to arise as a result of the country’s focus on reinforcing border security.
Algeria’s sudden rise as a major military force in Africa can be attributed to its burgeoning economy and a desire to establish its military superiority in the region.
Algeria’s domestic defense manufacturing capabilities are still underdeveloped, due to which the country mainly relies on foreign imports. Historically, Algeria has primarily imported weapons and related systems from Russia, occupying a 60.4% share; however, this trend is gradually changing as it opens its market to other countries and reduces its dependency on one particular nation, the research explained.
The country is developing efforts to reduce its military dependency on foreign suppliers and, therefore, is largely focusing on the joint development of defense systems as to strengthen its domestic defense manufacturing capabilities.
Furthermore, Algeria has witnessed a number of JVs with Algerian, Russian, French, and Serbian companies in areas, such as: armored vehicles, unmanned aircraft, military healthcare, and counter-terrorism equipment.
