Defence Changes in the Arab World

Middle East is the largest oil area in the whole world. This strategic place holds 60% of the oil reserves, and 45% of natural gas reserves, in the world. However, Middle East enjoys a very limited economic role. Total GDPs of its countries do not exceed 5.2% of the total GDPs of the whole world.

Middle Eastern countries have enormous military powers, but these powers are not tied together. The armies of these countries are effective in fighting small wars with neighbouring countries, but they are not effective in case of war waged by a super power.

Arab countries are engaged in a modernizing process of their armies, in order to acquire the 21st d armaments. Acquiring new weapons, or modernizing the existing ones depends largely on cost budgets.

Decision making in weaponry deals is a long and complicated process, and it sometimes includes Offset investments. Most deals are divided into smaller deals over many years. Offset investment percentage required is 30% compared with 120% in European countries. Arab countries are trying to acquire “Digital Battle” technology, which includes command and control systems, and the latest communication systems. Helicopters are playing an ever-increasing role in modern armies in land battles against tanks, in the air providing air support for land forces, as well as in the sea.

As a result of many wars that occurred in the Middle East area, the armies are larger than usual. The greatest challenge nowadays to these armies is terrorism, and the great battles that the Lebanese army fought in 2007 provided an example.

Arab armies are adopting defensive ideologies. But Arab strategic planners fear an Iranian interference in Iraq, which could lead to a war between the Arabs and the Persians. Strategic balance with Israel is hardly reached, because of that country’s highly advanced air force, and the excellent manoeuvrability of its army.

The regional war between Iran and Israel remains a possibility that threatens to extend to all countries in the region, even the Gulf States.

Arab defence industries witnessed an important development: 1- Development of the maintenance industry. This industry keeps all weaponry in a state of readiness. 2- Arab countries are trying to assemble the weapons bought from the west. Saudi Arabia will assemble 48 out of 72 Typhoon planes in factories built near Riyadh. Jordan is assembling 100 armoured Turkish- made vehicles, while Egypt will assemble Abrams tanks. 3- Most Arab countries have their own ammunitions. 4- Egypt and Syria have capabilities of building ballistic missiles, while Jordan and Saudi Arabia has an industry of light armoured vehicles. 5- The steps mentioned above requires generations of engineers from Egypt and Jordan. These engineers will be able to update existing weaponry systems, but they will not have the capability of making complete weaponry systems.

Latest Military Contracts for Arab Armed Forces

Arab states concluded military contracts worth tens of Billions of dollars with Western manufacturers: USA, Russia, Britain, France, and China. Israel went ahead of the Arab states in modernizing its army. Iran has old weaponry that goes back to the Sixties and Seventies of the last century, but its defence policy is quite different.

The most important military contracts can be summarized as follows:

Algeria: A contract worth 7.5 Billion USD included the purchase of 180 tanks, modernization existing T-72 tanks, 24 air defence systems, 28 Mig-29 SMT, and 28 SU-30.

Bahrain: intending to buy new frigates, 9 Sikorsky helicopters, early warning radar.

Egypt: will buy 125 M-1 tanks, 6 swift Protector boats, and will assemble 40 K-8E trainers. Its program includes modernizing 35 Apache combat helicopters, and early warning Hawk Eye systems.

Iraq: acquired 150 BMP, BTML, and BTR-08, armoured vehicles. The army intends to buy 24 King Air 350, 17 transport ME-17 helicopters, and AN/FPS 117 vehicles.

Jordan: will acquire100 armoured vehicles, 20 F-16/BMLU, and two IL-76 heavy transportation planes. The country will modernize its tanks and F-16 planes.

Kuwait: intends to buy 100 armoured wheeled 8X8 vehicles, mobile telecommunication system, two large boats for the navy, 12 swift boats, F-18 multi-role fighters.

Libya: signed a 5.7 Billion USD contract with France to buy 14 Rafale planes, 2 frigates. A contract was signed with Russia to buy 12 Mig-29 SMT, A-74 heavy transport planes.

Oman: will buy 50 wheeled 6X6 vehicles from china, 30 anti tank JAVELIN systems, 20 NH-90 TTH helicopters, and 2 Airbus-320 for VIP use.

Qatar: plans to buy 40 combat tanks, anti-tank rocket systems, and two 700-ton displacement frigates.

Saudi Arabia: will acquire 24 out of 72 Typhoon multi-role planes, mid-range DF-3A missiles, 51 ABRAMS M1A1 tanks, 76 Howitzer 155 mm CAESER type cannons, 142 helicopters, new frigates, and 724 LAV wheeled vehicles for the National Guard.

Syria: will modernize its 1400 T-72 tanks, in addition to acquiring SU-27K planes.

Emirates: will acquire 50 air defence Pantsir S1 systems, 20 Himars missiles, Al-Baynounah frigates, F-16 E/F Block 60, and tens of helicopters, in addition to A-330 MRTT tanker planes.

Offset Programs in the Gulf

Arab countries signing military contracts with foreign countries are looking for opportunities in order to create new jobs to their citizens. Offset programs are intended for developing cooperation and partnership between foreign contractors and both private and public sectors in the countries seeking weaponry and technological services.

Saudi Offset Programs: Saudi economical balance law obliges weaponry suppliers to invest at least a third of the contract’s value in high technology projects in the kingdom. New companies emerged with Billions of dollars worth of investments, such as AEC, and Al-Salam Aviation, which cooperates with the American Boeing company. A joint Offset program with Britain was established under the name of YAMAMA with a capital of 1Billion Sterling Pounds. The project came as a result of the British military sales to Saudi armed forces. YAMAMA is helping in the diversification process of Saudi economy by creating successful business projects not connected with oil.

Saudi Arabia is investing now in technology through its Offset programs, whereas in other countries 25% to 35% of the contract value is required to be invested in establishing new projects. Total volume of investments in established projects reached 6.7 Billion Saudi Riyal, and providing 6000 jobs for Saudi citizens.

Al-Salam Aircraft Company: Established in 1988 near King Khaled Airport, the company has become one of the most important in the field of aircraft maintenance. Al-Salam has many airline customers in the Arab world. The company provides technical support for military programs, and performs full maintenance projects for civil aircraft, such as 707, 737, 747, Boeing aircraft.

Advanced Electronic Company (AEC): Established in 1988 as one of Saudi Offset companies specializing in designing, production, and maintaining electronic systems and equipment. The company produces GPS satellite controlled systems for vehicles, digital electrical equipment, secured communication systems, and the mechanical designing of equipment and electronic systems.

Emirate’s Offset program: The program began in the year 1992. The program aims to make arms contracts affordable ones, economically speaking. The program requires that arms suppliers invest 60% of the contract value in an investment project in the country, which can make profits while providing advanced technology. The most important Offset programs in the country are:

• Abu Dhabi Ship Building: established in 1996. The company builds and maintains commercial and military ships. Six modern Al-Baynounah frigates would be built by the company.
• Gulf Aircraft Maintenance Company: highly successful company with a capital of 500 Million USD.
• OFOQ Aviation International Academy: trains helicopter pilots.
• Burkan Munitions Factory: will start production in the year 2009.

Tanks and Aircrafts in Arab Armed Forces

A- Tanks

Arab countries have 14,499 major combat tanks, but modern tanks in Arab armies are relatively few (1,920 owned by Saudi Arabia, Emirates, Kuwait, Egypt, and Oman).

Algeria will receive a total of 300 modern Russian T-90S tanks. The tank is equal in power to modern western tank. The army is considering modernizing its existing T-72 tanks. Bahrain is satisfied with its M-60 tanks. Egypt has 880 M1A1 tanks distributed over two armoured brigades. The army has an additional 1000 M-60 A1 used by seven Mechanical Divisions. The army has 680 old M60- A1 tanks used as a source for spare parts. Jordan has its own program to develop Challenger-1 tanks. The program includes installing RUAG made towers for these tanks. The Jordanian army has 350 Al-Khaled (modified Chiftain) tanks. Kuwait has 236 Abrams M1A2, and 150 T-72 tanks. Lebanon intends to buy 60 modern tanks to be added to its 92 M-5A48, and 218 T-54/55 tanks. Libya is in its way to modernize by buying Le Clerc tanks. Morocco acquired 48 T-72 recently to be added to existing 320 M-60. Oman bought 38 advanced Challenger-2 tanks in addition to 43 M-3A60. Saudi Arabia acquired 51 Abrams M1A1 last year to be added to the existing 315 Abrams, and 300 AMX tanks. Syria has a large number of tanks (4600): 1400 T-72 tanks modernized recently. Syrian army has six armoured divisions.

B- Arab Air Forces

Algeria: will acquire 28 Mig-29 MST, 6 Mig 29 UBT, 28 SU 30- MKA jets, in order to modernize its fleet.

Saudi Arabia: will buy 72 multi-roles Typhoon, 48 of which will be assembled locally. The kingdom will modernize 88 Tornado strike jets. Saudi Air force, considered the strongest in the region, has another 153 F-15 jets.

SUDAN: acquired 20 Mig-29 SE, 16 Mig 21 PF, to be added to its existing jets.

OMAN: received 12 F-16 C/D, and intends to buy another 12 F-16.

LIBYA: will modernize 16 Mig 21, and 12 Mirage F-1 AD/ED. Libya modern jets, either Mig 29 SMT, or the French Rafale.

Morocco: will modernize its 28 Mirage F-1 CH/EH, and intends to buy F- C16 Block 50 jets.

Evolution of Arab Defence Industry

Defence industries are an important sector in the economies of the developed world, hundred billions of dollars are invested yearly in development and designing weapons. This sector is considered a main propellant of technology and the economy in those countries. United States and Russia are the only countries in the world considered self sufficient in arms.

Egypt started its defence industries in the Sixties of last century with the aid of German scientists. Advanced combat plane was designed in that period, but it was not built due to its high production cost. Saudi Arabia started its own defence industry. Jordan and Emirates did the same thing.

The Egyptian Example: The Egyptian experiment started by building an ammunitions factory. Rocket designing began in the Sixties of the last century, but exports began in the Seventies. Abu Zubul factory produces weaponry, such as machine guns, cannons. The factory maintains and assembles tanks. Howitzer canons and rocket launchers are produced in Hilwan Engineering Factories. Egypt began assembling the Brazilian Tucano light training planes, and AlphaJet. Egyptian defence assembles industries 70% of the American tank Abrams, in cooperation with the United States. The industries manufacture 155 mm cannons, and many other types of military equipment.

The Saudi Example: Saudi defence industries were launched in the Nineties of last century. Offset projects require arms suppliers to invest part of the contract value in new projects locally. Typhoon fighter jets would be assembled in a new factory built near Riyadh. Wheeled armoured vehicles are also built in Saudi factories.

The Jordanian Example: King Abdullah Designing and Development Bureau designs and produces military and civil equipment, armoured vehicles. Seabird Aviation Jordan manufactures small surveillance planes. The Bureau designed and built an unmanned submarine.

The Emirati Example: Emirates depends on importing its needs of weaponry and equipment. Offset programs were launched, and several new partnership projects were established. The most important of these projects are: 1- ADCOM that manufactures unmanned light planes. 2- Caracal manufactures light weaponry, especially pistols. 3- Burkan manufactures ammunitions, and jet munitions