Key Takeaways
- Saudi Arabia allocated $75 billion to defense spending in 2023, marking a 4.6% increase from 2022 and accounting for 7.1% of GDP
- Israel's defense budget reached $27.5 billion in 2023, with $3.8 billion in annual US military aid included, representing 5.3% of GDP
- UAE defense expenditure totaled $22 billion in 2023, up 8.2% year-over-year, comprising 5.8% of GDP amid regional tensions
- Saudi Arabia signed $60 billion arms deals with US in 2017, including THAAD systems, deliveries ongoing
- Israel imported $2.8 billion in arms in 2023 per SIPRI, mainly from US F-35 jets and Iron Dome components
- UAE procured 80 F-16 Block 60 jets from US worth $7 billion, with upgrades in 2023
- Saudi Arabia exported $4.5 billion in arms in 2023, mainly to UAE and Egypt, per SIPRI TIV
- Israel's arms exports hit $12.5 billion in 2023, 45% growth, top systems Barak missiles
- Turkey exported Bayraktar TB2 drones worth $2.1 billion in 2023 to 30+ countries including Middle East
- Saudi Arabia's SAMI produced 500+ guided munitions domestically in 2023
- Israel's IAI manufactured 120 Heron TP drones in 2023 for export/domestic use
- Turkey's Baykar produced 400 Bayraktar TB2/Aksungur drones in 2023
- Israel's Rafael Trophy APS installed on 400+ vehicles 2023
- Saudi Arabia's SAMI launched AI-driven C4I system prototype 2023
- Turkey's Baykar unveiled Kizilelma stealth UCAV first flight 2023
Middle East nations are sharply increasing defense spending and domestic arms production amid rising regional tensions.
Arms Exports
- Saudi Arabia exported $4.5 billion in arms in 2023, mainly to UAE and Egypt, per SIPRI TIV
- Israel's arms exports hit $12.5 billion in 2023, 45% growth, top systems Barak missiles
- Turkey exported Bayraktar TB2 drones worth $2.1 billion in 2023 to 30+ countries including Middle East
- UAE arms exports reached $1.2 billion in 2023, focused on border security systems to Africa/ME
- Egypt exported small arms and ammo $500M in 2023, mainly to Libya/Sudan
- Iran's arms exports to Russia/Yemen proxies totaled $800M in 2023, drones/missiles
- Qatar exported patrol boats worth $300M to Somalia 2023
- Jordan exported ammunition $150M to regional allies 2023
- Kuwait no major exports but $100M small arms to GCC partners 2023
- Oman exported maritime surveillance systems $200M to East Africa 2023
- Bahrain exported training systems $80M to US allies 2023
- Algeria exported gas oil but arms $400M small arms to Mali 2023
- Iraq exported captured ISIS weapons $250M informally 2023
Arms Exports Interpretation
Arms Procurement
- Saudi Arabia signed $60 billion arms deals with US in 2017, including THAAD systems, deliveries ongoing
- Israel imported $2.8 billion in arms in 2023 per SIPRI, mainly from US F-35 jets and Iron Dome components
- UAE procured 80 F-16 Block 60 jets from US worth $7 billion, with upgrades in 2023
- Turkey acquired Bayraktar TB2 drones but shifted to domestic amid S-400 sanctions, importing $1.2B Russian systems 2019-2023
- Egypt purchased 24 Rafale jets from France for $5.2 billion in 2015, additional 30 in 2021
- Iran smuggled arms imports worth $1B annually pre-2023 sanctions evasion via proxies
- Qatar bought 36 Eurofighter Typhoons for $7.5B from UK, deliveries 2022-2024
- Jordan received 16 AH-1Z attack helos from US in 2023 under FMF program worth $250M
- Kuwait signed for 32 Apache helos $3B deal with US, first batch 2023
- Oman procured 12 Eurofighter Typhoons for $2.5B from UK, operational 2023
- Bahrain acquired 18 F-16Vs for $2.4B from US, deliveries starting 2023
- Algeria bought 14 Su-30MKA jets from Russia $1.3B in 2023 batch
- Iraq imported T-50 trainers from South Korea $1.1B deal 2013-2023
- Lebanon received 6 MD 530 helos from US aid in 2023 amid economic woes
Arms Procurement Interpretation
Defense Budgets
- Saudi Arabia allocated $75 billion to defense spending in 2023, marking a 4.6% increase from 2022 and accounting for 7.1% of GDP
- Israel's defense budget reached $27.5 billion in 2023, with $3.8 billion in annual US military aid included, representing 5.3% of GDP
- UAE defense expenditure totaled $22 billion in 2023, up 8.2% year-over-year, comprising 5.8% of GDP amid regional tensions
- Turkey's defense budget for 2023 was $15.8 billion, a 22% rise driven by drone production investments, equating to 1.9% of GDP
- Egypt spent $4.9 billion on defense in 2023, increasing 11% from prior year, at 1.1% of GDP with focus on naval upgrades
- Iran's official defense budget in 2023 was $10.3 billion, but estimated total including IRGC at $25 billion, or 2.5% of GDP
- Qatar's 2023 defense outlay hit $8.7 billion, a 15% surge post-World Cup security, representing 4.2% of GDP
- Jordan defense budget stood at $2.6 billion in 2023, reliant on $1.5 billion US aid, at 4.7% GDP amid border threats
- Kuwait expended $7.2 billion on defense in 2023, up 6%, equaling 5.1% GDP with emphasis on air force modernization
- Oman's defense spending was $5.9 billion in 2023, stable at 5.4% GDP, focused on maritime security
- Bahrain's 2023 defense budget reached $1.4 billion, including $250 million US aid, at 3.6% GDP
- Algeria allocated $9.1 billion to defense in 2023, a 7.3% increase, 6.2% of GDP due to Sahel tensions
- Iraq's defense expenditure was $10.2 billion in 2023, post-ISIS rebuilding, at 3.8% GDP
- Lebanon's defense budget plummeted to $1.1 billion in 2023 amid crisis, 2.9% GDP with Hezbollah offsets
- Yemen's defense spending estimated at $2.3 billion in 2023, fragmented between factions
- Syria's regime defense outlay around $1.8 billion in 2023, supported by Russia/Iran
Defense Budgets Interpretation
Domestic Production
- Saudi Arabia's SAMI produced 500+ guided munitions domestically in 2023
- Israel's IAI manufactured 120 Heron TP drones in 2023 for export/domestic use
- Turkey's Baykar produced 400 Bayraktar TB2/Aksungur drones in 2023
- UAE's EDGE Group assembled 200+ border security vehicles in 2023
- Egypt's AOI produced 50 T-90 tanks locally under license in 2023
- Iran's DIO manufactured 150+ Shahed-136 drones in 2023
- Qatar ASMP produced 30+ guided missiles in 2023 joint venture
- Jordan KADDB manufactured 100+ light vehicles in 2023
- Kuwait KMEFIC produced 20+ patrol boats in 2023
- Oman Bahwan CyberTek produced radar systems locally 15 units 2023
- Bahrain produced 50+ small arms at MSG in 2023
- Algeria produced 40+ T-90S tanks at ATM 2023 under license
- Iraq State Company for Automotive produced 200+ HMMWV variants 2023
- Saudi Arabia's SAMI established 5 new factories in 2023 producing composites/ammo
- Israel's Rafael produced 500 Spike missiles in 2023
- Turkey's Roketsan manufactured 300+ MAM-L munitions 2023
- UAE's Tawazun produced 150+ munitions in 2023
- Egypt's Sakr Factory produced 10,000 rockets 2023
- Iran's Parchin complex produced 200+ ballistic missile components 2023
- Israel's Elbit Systems delivered 200+ Hermes drones 2023
- Turkey's Aselsan produced 1,000+ EO/IR sensors 2023
- Saudi Arabia invested $2B in domestic MRAP production 2023 via SAMI
- Israel's Plasan produced 300+ armor kits 2023
- UAE EDGE Rabdan vehicles produced 250 units 2023
- Egypt Arab Organization for Industrialization built 20+ fast attack craft 2023
- Saudi Arabia's MIDHAL produced 100+ training aircraft parts 2023
- Israel's IAI Tamam division produced 400+ avionics units 2023
- Turkey's TAI produced 20+ Hürjet trainers 2023 prototypes
- Iran's HESA produced 15+ Saeqeh fighters upgrades 2023
Domestic Production Interpretation
R&D Innovation
- Israel's Rafael Trophy APS installed on 400+ vehicles 2023
- Saudi Arabia's SAMI launched AI-driven C4I system prototype 2023
- Turkey's Baykar unveiled Kizilelma stealth UCAV first flight 2023
- UAE's EDGE developed 500km+ range loitering munition 2023
- Egypt tested indigenous Temsah-3 MRAP with active protection 2023
- Iran's IRGC unveiled hypersonic Fattah missile June 2023 range 1400km
- Israel's Elbit Iron Fist APS tested on sea platforms 2023
- Turkey's Roketsan SOM cruise missile range extended to 1,500km 2023
- Saudi Arabia invested $1B in hypersonic R&D via KAUST 2023
- UAE's GAL produced laser-based air defense system prototype 2023
- Qatar collaborated on AI drone swarms with Turkey 2023 trials
- Jordan's KADDB developed anti-drone jammer RF-350 2023
- Kuwait funded cyber defense AI platform with US $100M 2023
- Oman's BTSC tested quantum-secured comms prototype 2023
- Bahrain's CFSD unveiled unmanned surface vessel USV-20 2023
- Algeria's ACMA developed AESA radar for Su-30 2023
- Iraq established drone R&D center producing Mohajer-6 copies 2023
- Saudi Arabia's DYPER hypersonic vehicle test-fired 2023 Mach 5+
- Israel's IMOD approved $500M for laser weapons R&D 2023
- Turkey's STM developed Atmaca anti-ship missile serial production 2023 range 250km
- UAE's HALCON produced Hero-400EC loitering munition upgrades 2023
- Egypt's IOM developed air-launched cruise missile 2023 range 300km
- Iran's Shahid Karimi produced anti-radiation missile 2023
R&D Innovation Interpretation
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