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Yemen Defence and Security Report 2016

  • January 2016
  • -
  • Business Monitor International
  • -
  • 30 pages

BMI View: Yemen remains wholly reliant on defence imports to meet the requirements of its armed forces, as the country does not produce any military equipment domestically. Moreover, Yemen depends on foreign aid to fund defence procurement amid deteriorating economic conditions. Nevertheless, demand for military products remains strong in the country amid the ongoing conflict between pro-government forces and the Houthi-Saleh alliance, rising Islamist extremism and growing calls for southern independence.

We expect Yemen to procure counterinsurgency equipment in the land and air segments over the short-to-medium term; however, in the long term it may seek to develop maritime capabilities in order to strengthen protection of strategic sea lanes. Demand for defence equipment in Yemen is set to remain strong in 2016 due to the ongoing conflict between pro-Hadi government forces and the Houthi-Saleh alliance. Reflecting this is the high share of Yemen's budget allocated to defence spending, at a forecast 5.3% of GDP in 2016. However, amid deteriorating economic conditions, the overall size of the military budget remains relatively small, at USD1.8bn. This means that Yemen will need to rely on foreign aid to meet the requirement of its armed forces in the short-to-medium term.

Table Of Contents

Yemen Defence and Security Report 2016
BMI Industry View 5
SWOT 7
Defence Industry 7
Industry Forecast 9
Defence Expenditure 9
Table: Defence Expenditure (Yemen 2012-2019) 10
Armed Forces 11
Table: Armed Forces Personnel (Yemen 2005-2011) 11
Table: Manpower Available For Military Service (Yemen 2012-2019) 13
Defence Trade 14
Imports 14
Table: Defence Imports (Yemen 2012-2019) 14
Exports 15
Table: Defence Exports (Yemen 2012-2019) 15
Industry Risk Reward Index 16
Defence Industry Risk Reward Index 16
Table: Middle East And Africa - Defence Industry Risk Reward Index 16
Rewards 17
Risks 18
Market Overview 19
Defence Market Overview 19
Domestic Defence Sector 20
Domestic Defence Market 20
Security Overview 22
Domestic Threats 22
Regional Threats 26
International Threats 26
Weapons Of Mass Destruction 27
Methodology 28
Risk/Reward Index Methodology 28
Sector-Specific Methodology 29
Table: Defence Risk/Reward Index Indicators 29
Weighting 30
Table: Weighting of Defence Risk Reward Index 30

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