Gcc Defense Market

GCC Defense Market, By Armed Forces (Army, Navy, Air Force); By Type (Personnel Training & Protection, Communication Systems, Vehicles, Weapons & Ammunition); By Technology (Missile Defense Systems, Unmanned Aerial Vehicles (UAVs), Cybersecurity & Electronic Warfare, Surveillance & Reconnaissance Systems); By Country (UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, Oman), Trend Analysis, Competitive Landscape & Forecast, 2019–2031

  • Published Date: September 2025
  • Report ID: BWC25474
  • Available Format: PDF
  • Page: 268

Report Overview

Geopolitical tensions, rising Defense budgets, military modernization, regional collaborations, advanced tech adoption, and focus on national security drive growth are driving the growth of GCC Defense Market during the forecast period between 2025 and 2031

GCC Defense Market – Industry Trends & Forecast Report, 2031

GCC Defense Market size was estimated at USD 38.80 billion in 2024. During the forecast period from 2025 to 2031, GCC Defense Market size is projected to grow at a CAGR of 7.22%, reaching a value of USD 63.20 billion by 2031. The expansion of GCC Defense Market is driven by escalating geopolitical tensions, prompting increased investment in military capabilities across member states. Rising defense budgets, especially in Saudi Arabia and the UAE, support modernization efforts, including advanced technologies like missile defense systems, UAVs, and cyber warfare tools. Regional collaboration through joint exercises and strategic partnerships further fuels growth. Additionally, the push for local manufacturing and technology transfer enhances self-sufficiency, while evolving security threats continue to shape procurement priorities and innovation in defense systems.

GCC Defense Market

Defense – Overview

The defense sector encompasses military forces, technologies, and infrastructure dedicated to safeguarding national sovereignty and security. It includes land, air, and naval operations supported by advanced systems such as missile Defense, cybersecurity, and surveillance. Governments invest heavily in Defense to counter threats, maintain stability, and project power. The industry also involves research, manufacturing, and strategic partnerships. With evolving geopolitical dynamics and technological advancements, Defense remains a critical pillar of national policy and global influence.

GCC Defense Market 

Growth Drivers

Increasing Defense Budgets across GCC Nations

In response to escalating geopolitical tensions, GCC nations have significantly ramped up their defense budgets to strengthen national security and regional stability. Countries like Saudi Arabia, UAE, and Qatar are investing heavily in advanced military technologies, procurement programs, and the modernization of armed forces. These increased allocations support the acquisition of missile defense systems, UAVs, and cyber capabilities. The rising expenditure reflects a strategic shift toward self-reliance, deterrence, and enhanced operational readiness across the Gulf Cooperation Council (GCC) region. These growth trends are expected to boost the growth of GCC Defense Market in the coming years.

Challenges

Heavy Reliance on Foreign Defense Contractors

GCC Defense Market faces a key restraint due to its heavy dependence on foreign contractors for advanced military systems and technologies. Despite substantial defense spending, local manufacturing capabilities remain limited, resulting in reduced self-sufficiency and strategic vulnerability. This reliance hampers the development of indigenous defense industries and creates long-term sustainability challenges. Without coordinated procurement strategies and investment in domestic innovation, GCC nations risk continued dependence on external suppliers for critical defense infrastructure.

Impact of Escalating Geopolitical Tensions on GCC Defense Market 

Intensifying geopolitical tensions across the Middle East region have significantly intensified defense priorities across GCC nations. Regional conflicts and evolving threats have driven a surge in military spending, modernization programs, and strategic procurement of advanced systems like missile defense and cybersecurity tools. Countries such as Saudi Arabia and the UAE are investing heavily to enhance national security and reduce reliance on foreign suppliers. This heightened focus is transforming the GCC into a pivotal defense hub with growing demand for cutting-edge technologies. It, in turn, is expected to drive the expansion of GCC Defense Market at a significant growth rate during the period in analysis.

GCC Defense Market 

Segmental Coverage

GCC Defense Market – By Armed Forces

By armed forces, GCC Defense Market is divided into Army, Navy, and Air Force segments. The army segment stands out as the largest of GCC Defense Market by armed forces. Substantial investments in land-based defense systems, armored vehicles, and troop modernization programs drive this dominance. GCC nations prioritize ground force capabilities to address regional threats and border security challenges. The army's strategic role in counterterrorism, internal stability, and rapid deployment makes it a focal point of Defense spending, contributing significantly to overall market growth and modernization efforts.

GCC Defense Market Size

GCC Defense Market – By Type

Based on type, GCC Defense Market is divided into Personnel Training & Protection, Communication Systems, Vehicles, and Weapons & Ammunition segments. The weapons and ammunition segment emerges as the largest type in GCC Defense Market. This dominance is driven by high demand for advanced missile systems, artillery, and precision-guided munitions amid rising regional security threats. GCC nations prioritize firepower and strategic deterrence, leading to substantial investments in this segment. The focus on modern warfare capabilities and procurement of cutting-edge weaponry continues to fuel its growth across the region.  

GCC Defense Market – By Technology

On the basis of technology, GCC Defense Market is divided into Missile Defense Systems, Unmanned Aerial Vehicles (UAVs), Cybersecurity & Electronic Warfare, and Surveillance & Reconnaissance Systems segments. The missile defense systems segment holds the largest market share of in GCC Defense Market by technology. Driven by rising geopolitical tensions and increased military budgets, GCC nations are prioritizing missile Defense to counter aerial threats and enhance national security. Investments in advanced interception technologies and strategic deterrence capabilities have positioned this segment as the cornerstone of regional Defense modernization and procurement strategies.

GCC Defense Market Growth 

GCC Defense Market – By Country

By country, GCC Defense Market is divided into UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, and Oman. Saudi Arabia holds the largest market share of GCC Defense Market. With the highest defense budget in the region, Saudi Arabia leads in procurement of advanced military technologies, modernization programs, and strategic partnerships with global defense contractors. The Kingdom’s increasing focus on missile defense, cybersecurity, and indigenous manufacturing through SAMI positions it as a dominant force driving regional defense growth and shaping the future of GCC Defense Market.

Competitive Landscape

Major companies operating in GCC Defense Market include Lockheed Martin, BAE Systems, Airbus, Boeing, Northrop Grumman, Thales Group, Leonardo S.p.A., Elbit Systems, Rheinmetall AG, EDGE Group (UAE), and SAMI – Saudi Arabian Military Industries. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

Attributes

Details

Years Considered

Historical Data – 2019–2031

Base Year – 2024

Estimated Year – 2025

Forecast Period – 2025–2031

Facts Covered

Revenue in USD Billion

Market Coverage

UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, Oman

Product/ Service Segmentation

Armed Forces, Type, Technology, Country

Key Players

Lockheed Martin, BAE Systems, Airbus, Boeing, Northrop Grumman, Thales Group, Leonardo S.p.A., Elbit Systems, Rheinmetall AG, EDGE Group (UAE), SAMI – Saudi Arabian Military Industries

 

 

By Armed Forces

  • Army

  • Navy

  • Air Force 

By Type

  • Personnel Training and Protection

  • Communication Systems

  • Vehicles

  • Weapons & Ammunition 

By Technology

  • Missile Defense Systems

  • Unmanned Aerial Vehicles (UAVs)

  • Cybersecurity & Electronic Warfare

  • Surveillance & Reconnaissance Systems

By Country

  • UAE

  • Saudi Arabia

  • Qatar

  • Kuwait

  • Bahrain

  • Oman

  1. Research Framework
    1. Research Objective
    2. Vehicle Type Overview
    3. Market Segmentation
  2. Executive Summary
  3. GCC Defense Market Insights
    1. Industry Value Chain Analysis
    2. DROC Analysis
      1. Growth Drivers
        1. Rising Geopolitical Tensions in the Region
        2. Increased Defense Budgets Across GCC Nations
        3. Focus on Modernisation and Advanced Technologies (e.g., UAVs, Cyber Warfare)
      2. Restraints
        1. Heavy Reliance on Foreign Defense Contractors
        2. Fragmented Procurement Strategies Among Member States
        3. Limited Indigenous Manufacturing Capabilities  
      3. Opportunities
        1. Development of Local Defense Manufacturing Ecosystems
        2. Expansion of Joint Military Exercises and Regional Collaboration  
      4. Challenges
        1. Interoperability Issues Across National Forces
        2. Supply Chain Complexity and Maintenance Inefficiencies  
    3. Technological Advancements/Recent Developments
    4. Regulatory Framework
    5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
  4. GCC Defense Market: Marketing Strategies
  5. GCC Defense Market: Pricing Analysis
  6. GCC Defense Market Overview
    1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
    2. Market Share & Forecast
      1. By Armed Forces
        1. Army
        2. Navy
        3. Air Force  
      2. By Type
        1. Personnel Training & Protection
        2. Communication Systems
        3. Vehicles
        4. Weapons & Ammunition  
      3. By Technology
        1. Missile Defense Systems
        2. Unmanned Aerial Vehicles (UAVs)
        3. Cybersecurity & Electronic Warfare
        4. Surveillance & Reconnaissance Systems
      4. By Country
        1. UAE
        2. Saudi Arabia
        3. Qatar
        4. Kuwait
        5. Bahrain
        6. Oman
  7. Saudi Arabia Defense Market
    1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
    2. Market Share & Forecast
      1. By Armed Forces
      2. By Type
      3. By Technology
      4. By Country
  8. UAE Defense Market
    1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
    2. Market Share & Forecast
      1. By Armed Forces
      2. By Type
      3. By Technology
      4. By Country
  9. Qatar Defense Market
    1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
    2. Market Share & Forecast
      1. By Armed Forces
      2. By Type
      3. By Technology
      4. By Country
  10. Kuwait Defense Market
    1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
    2. Market Share & Forecast
      1. By Armed Forces
      2. By Type
      3. By Technology
      4. By Country
  11. Oman Defense Market
    1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
    2. Market Share & Forecast
      1. By Armed Forces
      2. By Type
      3. By Technology
      4. By Country
  12. Bahrain Defense Market
    1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
    2. Market Share & Forecast
      1. By Armed Forces
      2. By Type
      3. By Technology
      4. By Country
  13. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. GCC Defense Company Market Share Analysis, 2024
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
  14. Impact of Escalating Geopolitical Tensions on GCC Defense Market
  15. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. Lockheed Martin
    2. BAE Systems
    3. Airbus
    4. Boeing
    5. Northrop Grumman
    6. Thales Group
    7. Leonardo S.p.A.
    8. Elbit Systems
    9. Rheinmetall AG
    10. EDGE Group (UAE)
    11. SAMI – Saudi Arabian Military Industries
    12. Other Prominent Players 
  16. Key Strategic Recommendations
  17. Research Methodology
    1.    Qualitative Research
      1.  Primary & Secondary Research
    2.    Quantitative Research
    3.    Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
    4.    Breakdown of Primary Research Respondents, By Country
    5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

          

 

List of Figures

 

Figure 1       GCC Defense Segmentation

Figure 2       GCC Defense Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2024

Figure 4       GCC Defense Market Size, By Value (USD Billion), 2019–2031

Figure 5       GCC Defense Market Share, By Armed Forces, By Value, 2019–2031

Figure 6       GCC Defense Market Share, By Type, By Value, 2019–2031

Figure 7       GCC Defense Market Share, By Technology, By Value, 2019–2031

Figure 8       GCC Defense Market Share, By Country, By Value, 2019–2031

Figure 9       GCC Defense Market Share, By Country, By Value, 2019–2031

Figure 10     Saudi Arabia Defense Market Size, By Value (USD Billion), 2019–2031

Figure 11     Saudi Arabia Defense Market Share, By Armed Forces, By Value, 2019–2031

Figure 12     Saudi Arabia Defense Market Share, By Type, By Value, 2019–2031

Figure 13     Saudi Arabia Defense Market Share, By Technology, By Value, 2019–2031

Figure 14     Saudi Arabia Defense Market Share, By Country, By Value, 2019–2031

Figure 15     UAE Defense Market Size, By Value (USD Billion), 2019–2031

Figure 16     UAE Defense Market Share, By Armed Forces, By Value, 2019–2031

Figure 17     UAE Defense Market Share, By Type, By Value, 2019–2031

Figure 18     UAE Defense Market Share, By Technology, By Value, 2019–2031

Figure 19     UAE Defense Market Share, By Country, By Value, 2019–2031

Figure 20     Qatar Defense Market Size, By Value (USD Billion), 2019–2031

Figure 21     Qatar Defense Market Share, By Armed Forces, By Value, 2019–2031

Figure 22     Qatar Defense Market Share, By Type, By Value, 2019–2031

Figure 23     Qatar Defense Market Share, By Technology, By Value, 2019–2031

Figure 24     Qatar Defense Market Share, By Country, By Value, 2019–2031

Figure 25     Kuwait Defense Market Size, By Value (USD Billion), 2019–2031

Figure 26     Kuwait Defense Market Share, By Armed Forces, By Value, 2019–2031

Figure 27     Kuwait Defense Market Share, By Type, By Value, 2019–2031

Figure 28     Kuwait Defense Market Share, By Technology, By Value, 2019–2031

Figure 29     Kuwait Defense Market Share, By Country, By Value, 2019–2031

Figure 30     Oman Defense Market Size, By Value (USD Billion), 2019–2031

Figure 31     Oman Defense Market Share, By Armed Forces, By Value, 2019–2031

Figure 32     Oman Defense Market Share, By Type, By Value, 2019–2031

Figure 33     Oman Defense Market Share, By Technology, By Value, 2019–2031

Figure 34     Oman Defense Market Share, By Country, By Value, 2019–2031

Figure 35     Bahrain Defense Market Size, By Value (USD Billion), 2019–2031

Figure 36     Bahrain Defense Market Share, By Armed Forces, By Value, 2019–2031

Figure 37     Bahrain Defense Market Share, By Type, By Value, 2019–2031

Figure 38     Bahrain Defense Market Share, By Technology, By Value, 2019–2031

Figure 39     Bahrain Defense Market Share, By Country, By Value, 2019–2031

 

List of Tables

 

Table 1        GCC Defense Market Size, By Value (USD Billion), 2019–2031

Table 2        GCC Defense Market Size, By Armed Forces, By Value, 2019–2031

Table 3        GCC Defense Market Size, By Type, By Value, 2019–2031

Table 4        GCC Defense Market Size, By Technology, By Value, 2019–2031

Table 5        GCC Defense Market Size, By Country, By Value, 2019–2031

Table 6        GCC Defense Market Size, By Country, By Value, 2019–2031

Table 7        Saudi Arabia Defense Market Size, By Value (USD Billion), 2019–2031

Table 8        Saudi Arabia Defense Market Size, By Armed Forces, By Value, 2019–2031

Table 9        Saudi Arabia Defense Market Size, By Type, By Value, 2019–2031

Table 10      Saudi Arabia Defense Market Size, By Technology, By Value, 2019–2031

Table 11      Saudi Arabia Defense Market Size, By Country, By Value, 2019–2031

Table 12      UAE Defense Market Size, By Value (USD Billion), 2019–2031

Table 13      UAE Defense Market Size, By Armed Forces, By Value, 2019–2031

Table 14      UAE Defense Market Size, By Type, By Value, 2019–2031

Table 15      UAE Defense Market Size, By Technology, By Value, 2019–2031

Table 16      UAE Defense Market Size, By Country, By Value, 2019–2031

Table 17      Qatar Defense Market Size, By Value (USD Billion), 2019–2031

Table 18      Qatar Defense Market Size, By Armed Forces, By Value, 2019–2031

Table 19      Qatar Defense Market Size, By Type, By Value, 2019–2031

Table 20      Qatar Defense Market Size, By Technology, By Value, 2019–2031

Table 21      Qatar Defense Market Size, By Country, By Value, 2019–2031

Table 22      Kuwait Defense Market Size, By Value (USD Billion), 2019–2031

Table 23      Kuwait Defense Market Size, By Armed Forces, By Value, 2019–2031

Table 24      Kuwait Defense Market Size, By Type, By Value, 2019–2031

Table 25      Kuwait Defense Market Size, By Technology, By Value, 2019–2031

Table 26      Kuwait Defense Market Size, By Country, By Value, 2019–2031

Table 27      Oman Defense Market Size, By Value (USD Billion), 2019–2031

Table 28      Oman Defense Market Size, By Armed Forces, By Value, 2019–2031

Table 29      Oman Defense Market Size, By Type, By Value, 2019–2031

Table 30      Oman Defense Market Size, By Technology, By Value, 2019–2031

Table 31      Oman Defense Market Size, By Country, By Value, 2019–2031

Table 32      Bahrain Defense Market Size, By Value (USD Billion), 2019–2031

Table 33      Bahrain Defense Market Size, By Armed Forces, By Value, 2019–2031

Table 34      Bahrain Defense Market Size, By Type, By Value, 2019–2031

Table 35      Bahrain Defense Market Size, By Technology, By Value, 2019–2031

Table 36      Bahrain Defense Market Size, By Country, By Value, 2019–2031

Table 37 Lockheed Martin Company Overview

Table 38 Lockheed Martin Financial Overview

Table 39 BAE Systems Company Overview

Table 40 BAE Systems Financial Overview

Table 41 Airbus Company Overview

Table 42 Airbus Financial Overview

Table 43 Boeing Company Overview

Table 44 Boeing Financial Overview

Table 45 Northrop Grumman Company Overview

Table 46 Northrop Grumman Financial Overview

Table 47 Thales Group Company Overview

Table 48 Thales Group Financial Overview

Table 49 Leonardo S.p.A. Company Overview

Table 50 Leonardo S.p.A. Financial Overview

Table 51 Elbit Systems Company Overview

Table 52 Elbit Systems Financial Overview

Table 53 Rheinmetall AG Company Overview

Table 54 Rheinmetall AG Financial Overview

Table 55 EDGE Group (UAE) Company Overview

Table 56 EDGE Group (UAE) Financial Overview

Table 57 SAMI – Saudi Arabian Military Industries Company Overview

Table 58 SAMI – Saudi Arabian Military Industries Financial Overview

Market Segmentation

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Frequently Asked Questions (FAQs):

Ans: GCC Defense Market size by value was estimated at USD 38.80 billion in 2024.
Ans: GCC Defense Market is expected to grow at a CAGR of 7.22% during the forecast period between 2025 and 2031.
Ans: By 2031, GCC Defense Market size is forecast to reach a value of USD 63.20 billion.
Ans: The growth of GCC Defense Market is primarily driven by geopolitical tensions, rising Defense budgets, military modernization, regional collaborations, advanced tech adoption, and focus on national security.
Ans: Key players in GCC Defense Market include Lockheed Martin, BAE Systems, Airbus, Boeing, Northrop Grumman, Thales Group, Leonardo S.p.A., Elbit Systems, Rheinmetall AG, EDGE Group (UAE), and SAMI – Saudi Arabian Military Industries.
Ans: The army segment is expected to grow at the fastest CAGR in GCC Defense Market by armed forces during the forecast period between 2025 and 2031.