Egypt, which largely relies on the US for its defence imports, received $48.1bn from the US in the form of military aid during 1948-2017, according to a report by Strategic Defence Intelligence (SDI).
Titled ‘Future of the Egyptian Defense Industry-Market Attractiveness, Competitive Landscape and Forecasts to 2022’, the report analyses the current and future trends in the Egyptian defence industry.
Egypt imported 40% of its defence equipment from the US, and the rest from France, Germany, Spain, and Russia, during 2012-2016. Naval vessels formed the major part of arms imports, followed by aircraft, armoured vehicles, missiles, engines, sensors, satellites, air defence systems, and naval weapons.
Increasing capital expenditure allocations and modernisation of weapon systems are anticipated to escalate the nation’s defence imports during 2017-2022.
The Trump administration is, however, anticipated to hold back the funding apportioned for 2017, which is expected to increase Russia’s share of Egyptian military expenditure.
The indigenous defence industry of Egypt mostly develops defence equipment and systems through license manufacturing and technology transfers. The nation has been one of the attractive markets for the US defence companies, which enter the industry through government-initiated foreign military financing initiatives.
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On the other hand, recent license agreements with Chinese, German, and French firms have led to the production of trainer aircraft and anti-tank missiles.
Egypt also allows foreign suppliers through bilateral defence agreements with their respective governments, states the report.
Egypt remains to be a lucrative market for foreign defence equipment suppliers as it intends to manufacture license products and enter technology transfer agreements with foreign companies.