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This publication presents forecasts for and a SWOT analysis of the defence and security industry in the United Arab Emirates (UAE) for the third quarter of 2013. Forecasts for defence expenditure, exports, and imports are provided. The economic conditions of the UAE and its implications for the sector, are discussed. Also described are industry risk reward ratings, a global industry overview, and global political overview.

The UAE economy remains robust despite numerous issues that offer potential to derail growth. Driven by the country's proven oil reserves, the economy remains largely isolated from the military conflicts and turbulent political situations that surround it in the region. The federation is dominated by the two main emirates of Abu Dhabi and Dubai which contribute nearly 80% of national GDP. While Dubai's commercial hub had previously dominated on the international stage, the recent financial crisis has meant that political power is shifting in favour of Abu Dhabi on the back of its oil industry. Control of military and police forces is separated between the seven emirates, resulting in some tensions. However, overall decision making is in the hands of a select few rulers, which limits democratic influence. Considering the small size of its population, the military capabilities of the federation are impressive. The federation has little national manufacturing and as a result nearly all equipment is imported. The UAE maintains strong links with all the major arms manufacturing countries - France, Russia, UK, US - by splitting procurement equally between suppliers. The UAE has an exceptionally high ratio of foreign non-citizens - only 1mn of the estimated 6mn population are Emiratis. The largest population are from India, outnumbering native Emaratis at 1.75mn. The fact that many are poorly paid and work in difficult conditions has led to some demonstrations in recent years. There remains a serious risk that violence may potentially break out if more is not done to control or ease frictions. The country's geographical location places it close to several serious security risk zones: however, at present, there is no immediate threat to the UAE. The wars in Iraq and Afghanistan, and resurgent fundamentalism in Iran, all present the potential to grow into larger issues. This is particularly true of the situation in Iran, as the two countries are engaged in an ongoing dispute over strategic islands in the Gulf. Political stability in the country relies heavily on strong oil prices to bolster the current regime and prevent discontent with the current lack of democracy, transparency, or civil rights. As a result, risk ratings could be seriously affected by any large downturn in the price of oil. In the worst case scenario, however, the country is unlikely to see sudden or violent action. Any changes are likely to be gradual and evolutionary rather than disruptive. [ABSTRACT FROM AUTHOR]

The UAE economy remains robust despite numerous issues that offer potential to derail growth. Driven by the country's proven oil reserves, the economy remains largely isolated from the military conflicts and turbulent political situations that surround it in the region. The federation is dominated by the two main emirates of Abu Dhabi and Dubai which contribute nearly 80% of national GDP. While Dubai's commercial hub had previously dominated on the international stage, the recent financial crisis has meant that political power is shifting in favour of Abu Dhabi on the back of its oil industry. Control of military and police forces is separated between the seven emirates, resulting in some tensions. However, overall decision making is in the hands of a select few rulers, which limits democratic influence. Considering the small size of its population, the military capabilities of the federation are impressive. The federation has little national manufacturing and as a result nearly all equipment is imported. The UAE maintains strong links with all the major arms manufacturing countries - France, Russia, UK, US - by splitting procurement equally between suppliers. The UAE has an exceptionally high ratio of foreign non-citizens - only 1mn of the estimated 6mn population are Emiratis. The largest population are from India, outnumbering native Emaratis at 1.75mn. The fact that many are poorly paid and work in difficult conditions has led to some demonstrations in recent years. There remains a serious risk that violence may potentially break out if more is not done to control or ease frictions. The country's geographical location places it close to several serious security risk zones: however, at present, there is no immediate threat to the UAE. The wars in Iraq and Afghanistan, and resurgent fundamentalism in Iran, all present the potential to grow into larger issues. This is particularly true of the situation in Iran, as the two countries are engaged in an ongoing dispute over strategic islands in the Gulf. Political stability in the country relies heavily on strong oil prices to bolster the current regime and prevent discontent with the current lack of democracy, transparency, or civil rights. As a result, risk ratings could be seriously affected by any large downturn in the price of oil. In the worst case scenario, however, the country is unlikely to see sudden or violent action. Any changes are likely to be gradual and evolutionary rather than disruptive. [ABSTRACT FROM AUTHOR]

The UAE economy remains robust despite numerous issues that offer potential to derail growth. Driven by the country's proven oil reserves, the economy remains largely isolated from the military conflicts and turbulent political situations that surround it in the region. The federation is dominated by the two main emirates of Abu Dhabi and Dubai which contribute nearly 80% of national GDP. While Dubai's commercial hub had previously dominated on the international stage, the recent financial crisis has meant that political power is shifting in favour of Abu Dhabi on the back of its oil industry. Control of military and police forces is separated between the seven emirates, resulting in some tensions. However, overall decision making is in the hands of a select few rulers, which limits democratic influence. Considering the small size of its population, the military capabilities of the federation are impressive. The federation has little national manufacturing and as a result nearly all equipment is imported. The UAE maintains strong links with all the major arms manufacturing countries - France, Russia, UK, US - by splitting procurement equally between suppliers. The UAE has an exceptionally high ratio of foreign non-citizens - only 1mn of the estimated 6mn population are Emiratis. The largest population are from India, outnumbering native Emaratis at 1.75mn. The fact that many are poorly paid and work in difficult conditions has led to some demonstrations in recent years. There remains a serious risk that violence may potentially break out if more is not done to control or ease frictions. The country's geographical location places it close to several serious security risk zones: however, at present, there is no immediate threat to the UAE. The wars in Iraq and Afghanistan, and resurgent fundamentalism in Iran, all present the potential to grow into larger issues. This is particularly true of the situation in Iran, as the two countries are engaged in an ongoing dispute over strategic islands in the Gulf. Political stability in the country relies heavily on strong oil prices to bolster the current regime and prevent discontent with the current lack of democracy, transparency, or civil rights. As a result, risk ratings could be seriously affected by any large downturn in the price of oil. In the worst case scenario, however, the country is unlikely to see sudden or violent action. Any changes are likely to be gradual and evolutionary rather than disruptive. [ABSTRACT FROM AUTHOR]

The article analyzes the strengths, weaknesses, opportunities and threats for United Arab Emirates' political and economic status, national security and defense industry. Politically speaking, the state is said to be comparatively stable, regardless of the lack of democracy. However, its lack of democracy poses long-term risks given trends towards greater popular participation elsewhere in the region. Meanwhile, strong forecast for economic growth underpinned by a generous defense budget allows for extensive spending on maintaining security.

The article examines the political, economic and business environment in the United Arab Emirates (UAE), focusing on its strengths, weaknesses, opportunities and threats (SWOT) faced. Opportunities in the domestic security arena are a stable political system that supports a strong military and a rapidly developing military power in the Gulf region. It notes the threat posed by fluctuations in oil prices to the UAE defence industry. Weaknesses in the UAE political system include a lack of democracy and an opaque succession lineage.

The article presents an analysis of strengths, weaknesses, opportunities and threats (SWOT) related to the national security and defence industry of the United Arab Emirates (UAE), along with its political, economic and business environment, as of the fourth quarter of 2010. The country faces the threat of terrorism and terrorist-related activities. One of the strengths of the defence industry of the UAE is having a substantial number of well-trained human capital. Prices of oil are expected to stay high over the forecast period.

The article discusses a strengths, weaknesses, opportunities and threats (SWOT) analysis for United Arab Emirates (UAE), which covers national security, politics and the defense industry. Economic growth is expected to remain, given a high defense budget. The country is home to one of the most advanced defence contracts in the region, namely the Abu Dhabi Shipbuilding Co. (ADSB). Lack of democracy could reportedly trigger more popular participation in the country.

The article presents an evaluation of the strengths, weaknesses, opportunities, and threats (SWOT) involved in the United Arab Emirates' (UAE) politics, national security, and defence industry. Regardless of the lack of democracy, UAE is comparatively stable, with few obvious political risks. The country has strong relationships with the world's foremost exporters of arms.

The article reports on the defense industry and the state of national security in the United Arab Emirates (UAE) as of the third quarter of 2010. It is expected that defense spending will continue to be a priority while majority of military equipment will be imported. Political outlook is predicted to remain stable as the economy has enough money to cover concerns about democracy, civil rights and transparency.

The article presents information on the economic and political conditions in United Arab Emirates as of first quarter 2010. Until late 2009, the overall defence and security scene in the country remained unchanged. It is expected that the economic downturn will have little effect on the government's purchasing of military hardware. An unresolved territorial dispute continue between the country and Iran but they are still major trading partners. It is expected that the country's economy will contract by 2.8% in 2009.

The United Arab Emirates (UAE) is arguably the most politically stable country in the Arab world. It is currently edging towards reforms, largely at the behest of the US' limited agenda to introduce popular participation in the Gulf States, but these will be symbolic and will not cause any fundamental shifts in the power dynamics. The UAE has few explicit security threats. However, its inauspicious geo-strategic location dictates a permanent state of insecurity. Minor territorial disputes with Iran continue to put a low-level security pressure on the Emirates, while instability in nearby Iraq and political uncertainties in the wider region provide reason for caution. The security threats to the UAE in terms of insurgency and terrorism are thus far not significant. The UAE's 10-year modernisation programme has created a military with the potential to challenge Iran and Saudi Arabia for regional dominance. The confluence of strategic imperative and immediate wealth contributed to the UAE's establishment as a procurer, not a producer, of arms. The UAE lacks an established local defence industry and its forces are almost entirely reliant upon foreign procurement, training and expertise. The Offsets Group Programme mandates that foreign contractors establish joint ventures with local firms, providing the opportunities for technology transfers and the establishment of local maintenance and manufacturing facilities. A number of indigenous firms are however making limited progress in strengthening their position within the industry. Strong support for advanced military procurements and upgrades drive the industry for the medium term. Coming to the end of a 10-year US$15bn defence modernisation programme, the UAE is the most rapidly developing military power in the Gulf region. The UAE engages in a brisk arms trade with a variety of international suppliers. Regional security imperatives mean that the UAE is consistently looking to maintain its credible deterrent force by importing the latest technologies. To dilute the potential political effect of heavy reliance of foreign arms producers, the UAE consciously aims to diversify its suppliers among the four main global suppliers of arms: the US, France, the UK and Russia. The UAE does not export arms to any significant degree. It seems the Emirates have little to worry about for the time being - a stable political system, a strong economy, limited security threats, and a military with technology that can, in some aspects, rival the best in the world. [ABSTRACT FROM PUBLISHER]