Rabat - A new report suggests that Morocco’s defense spending capability is expected to increase at a compound annual growth rate (CAGR) of 4.42% over the forecast period and reach US $ 4.5 billion by 2018 in comparison with the US $ 3.8 billion defense budget which is projected in 2014.
“This growth is primarily due to the government’s steps to combat internal and external terrorist attacks, strengthen border security and procure new defense systems,” wrote the report titled The Future of the Moroccan Defense Industry-Market attractiveness, Competitive Landscape and Forecasts to 2018.
The per-capita defense expenditure is also expected to grow during the forecast period from US % 113.7 million in 2014 to US $ 130.1 million in 2018.
According to the report, the increase in Morocco’s homeland security budget over the forecast period is driven by increasing threats from human trafficking, drug smuggling and internal security.
The Moroccan military arsenal is mainly expected to revolve around fighter aircraft, diesel electric submarine, surveillance and monitoring equipment, and patrol ships.
“During the period 2008-2010, Morocco displayed a low level of imports, with a jump f 378.5% in 2011. In an attempt to enhance the capabilities of its armed forces, Morocco is expected to import defense equipment such as aircraft, armored vehicles, and radar systems, during the forecast period. Morocco currently does not export arms as the domestic defense industry is under-developed, but this is a trend that is expected to change over the forecast period with the attempts of the government to develop and expand the domestic,” the report added.
The report spanning over 103 pages, 20 tables and 71 figures provides detailed analysis about Morocco’s defense industry to potential companies operating in the defense sector with the aim of entering the Moroccan market.