Rabat - Morocco is expected to increase its defence spending by 3 per cent due to rising regional threats, according to Frost & Sullivan.
Rabat – Morocco is expected to increase its defence spending by 3 per cent due to rising regional threats, according to Frost & Sullivan.
In its new analysis, Rapidly Evolving Defence Markets part 2, Frost & Sullivan forecasts Morocco’s military spending to increase by 3.6 per cent over the next 10 years.
According to Frost & Sullivan, Morocco along with four other countries (Colombia, Kuwait, Malaysia, and Singapore) are expected to increase their defence spending from 38.73 billion USD in 2015 to 55.51 billion USD in 2015 at a compound annual growth rate of 3.7 percent.
The American consulting firm said that Morocco, Colombia, Kuwait, Malaysia and Singapore are expected to spend 21 percent of their total budget on new equipment.
“Unlike leading transitioning economies like India, South Korea, Turkey, the United Arab Emirates and Brazil, the five countries selected for this study are still attempting to develop an industrial base to bolster their local footprint and diminish reliance on foreign equipment,” said Frost & Sullivan Aerospace & Defence Industry Analyst Alix Leboulanger.
“Upon a closer look at these countries’ dynamics, it is found that their political intent is stronger than their financial and infrastructure capabilities.”
“On account of financial challenges in Malaysia and Morocco as well as high reliance on oil revenues in Kuwait, defence spending remains below anticipated levels,” noted Leboulanger.
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