Middle East and Africa Ammunition Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The Middle East and African ammunition market is projected to register a CAGR of 3.5% during the forecast period.

The impact of the COVID-19 pandemic on the Middle East and African ammunition market revenues is deemed to be less. The growth in defense spending and the adoption of newer generation ammunition with better penetrating power drive the market growth.

The ongoing political turmoil in countries such as Libya, Syria, and Yemen, has driven the demand for sophisticated weapons and ammunition in the region. Besides, rampant illegal activities, such as smuggling, unlicensed mining, and poaching, in the Middle East and African nations have encouraged procuring of advanced weaponry by the respective governments to strengthen their law enforcement and military capabilities.

Countries in the Middle East are currently focusing on developing indigenous weapon manufacturing capabilities, which may create a positive outlook for the regional market during the forecast period.

MEA Ammunition Market Trends

Military Segment Registered the Highest Market Share

The military segment is anticipated to dominate the market during the forecast period due to the increased procurement of ammunition by the armed forces to subdue the threats arising due to terrorism, territorial conflicts, and geopolitical tensions. The countries are procuring artillery and mortar systems to safeguard their borders against illegal trespassing and several forms of trafficking, generating demand for ammunition. For instance,

In January 2022, South Korea inked a deal with the United Arab Emirates to export midrange surface-to-air missiles, marking the Asian country’s largest-ever arms export deal in history. On January 16, 2022, the contract for the Cheongung II KM-SAM weapons (valued at about USD 3.5 billion) was signed.

In November 2021, AED 143.98 million (USD 39.20 million) contract was signed with Pakistan’s Global Industrial and Defence Solutions (GIDS) for the supply of various ammunition. The increase in defense expenditure and procurement in the military ammunition segment is expected to drive the market in the coming years.

Saudi Arabia is Expected to Generate the Highest Demand for Ammunition During the Forecast Period

Saudi Arabia possesses local ammunition manufacturing capabilities, bolstered by ammunition manufacturers like Saudi Arabian Military Industries (SAMI). The demand for ammunition from Saudi Arabia is expected to increase because of its active intervention in the ongoing military conflicts in Syria and Yemen. The country is investing heavily in the defense sector. In August 2022, the US State Department announced that it had approved the potential sale of arms to two of its key Middle East partners in separate deals with a total value of more than USD 5 billion. Under the terms of the first agreement, Saudi Arabia would purchase USD 3.05 billion worth of Patriot missiles. The United Arab Emirates would buy USD 2.25 billion worth of Terminal High Altitude Area Defense (THAAD) system missiles. Saudi Arabia signed a pact to purchase arms worth USD 350 billion from the United States by 2027. The intended purchase includes tanks, combat ships, missile defense systems, radar and communication systems, and cybersecurity technology. This factor generated a parallel demand for respective compatible ammunition, and it is expected to drive the market during the forecast period.

MEA Ammunition Market Competitor Analysis

The ammunition market in the Middle East and Africa is primarily dominated by foreign weapon manufacturers, such as BAE Systems PLC, Rheinmetall AG, General Dynamics Ordnance and Tactical Systems (General Dynamics Corporation), and Nexter Group. However, the growth of local manufacturers, like Denel SOC Ltd, SAMI, and Elbit Systems Ltd, has enhanced the competitive outlook of the market in the region.

The regional governments are also trying to bolster local manufacturing by introducing favorable policies to develop the critical infrastructure required for manufacturing military-grade ammunition. For instance, as part of its Vision 2030 initiative, Saudi Arabia plans to enhance its local defense manufacturing by 50% by 2030. Such developments are anticipated to alter the market dynamics during the forecast period.

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