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Market |
Defence |
Report Type |
Market Research |
Country |
Syria |
Published |
12 February 2009 |
Number of Pages |
38 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
The three months to the end of December 2008 brought several issues relevant to the Syrian defence industry to the fore. One was the Turkish-mediated peace talks with Israel to secure a settlement that includes the return of the Golan Heights to Syria. If Syria is successful in this regard, President Bashar al- Assad will be able to present this as a significant political and diplomatic victory, further enhancing his legitimacy and support.
Another key theme was the tightening of military relations between Syria and Russia. The Soviet-era naval base in the Syrian port of Tartus is being renovated to serve as a foothold for a permanent Russian navy presence in the Mediterranean.
The capabilities and equipment of the Syrian armed forces have been in decline of late, as US sanctions and subsequent cash shortfalls have forced the government to reduce its military spending. Military expenditure in Syria is low, having not increased in recent years. Syria lacks an established indigenous defence industry of significance, and its armed forces are almost entirely dependent upon procurement from overseas. For the time being, we continue to expect that the Syrian government will increase defence spending by a modest 5% annually, in real terms, over the coming years. Absolute increases will depend in part on how the country’s economy fares in the face of the global financial crisis.
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