The Egyptian defense market is expected to grow at a compound annual growth rate of 9.51 percent during the coming five years to value US$8.5 billion in 2019, Business Monitor International said in new market research report on Monday.
During the year of 2014 Egyptian military production reached a value of $5.2 billion, the report added.
"The country's increasing military expenditure is reflected in the ongoing modernization drive to counter threats of terrorism in the Sinai Peninsula, a strained relationship with Ethiopia, political turmoil following the recent democratic revolution and maritime security concerns over the Suez Canal," the report said.
The country's procurements are focused on military aircraft, helicopters, submarines, missile defense systems, surveillance equipment, small caliber and heavy ammunition, mortars, mines, grenades and other explosives, anti-tank missiles, rocket motors, radars and electronic equipment, smoke and pyrotechnic devices, rifles, pistols (Beretta licensed) and machine guns, tanks and artillery pieces according to the report.
Egypt is a major non-NATO ally of the US and has been receiving foreign military financing for the last three decades, amounting to $1.3 billion per year which, requires the country to spend the entire amount on purchasing military equipment from American contractors, the report explained.
Former Minister of Military Production Sayed Meshaal pointed to the intensification of technology and development collaboration with foreign defense manufacturers, including firms from the United States, Russia, the United Kingdom, China, South Africa, France and Italy, which has necessitated the construction of new facilities for research, manufacturing and testing.
Over the past decade the Egyptian military has established a number of private sector ventures with these groups, which have facilitated the transfer of technologies from firms in Taiwan, Germany and elsewhere according to Middle East Report.
