Middle East military spending increases against backdrop of global recession

Al-Shorfa senior editor and online sources
For Al-Shorfa.com
2009-06-25

Russian-made Sukhoi fighter jets of the Iranian air force fly over a military parade in Tehran on Army Day last year. (Reuters/Morteza Nikoubazl)

WASHINGTON — While most countries are cutting military spending, many of Iran’s neighbours continue shopping for high-tech arms, apparently aimed at building a wall around Iran, according to various study groups.

Egypt, Israel, Iraq, Saudi Arabia and the UAE account for the majority of sales, the bulk of which are for fighter jets and missile defences that are projected to total US$70 billion this year.

The economic crisis has “had relatively little impact” in the Middle East, according to the International Institute for Strategic Studies (ISS). It noted that any hardships suffered by plummeting oil prices by these countries have been offset by “budget surplus over several years”. Overall, the Middle East spends five percent of its GDP on the military, more than any other region.

In 2007, the UN called on governments to “exercise vigilance and restraint” in selling arms to Iran. Despite this, Russia has reportedly agreed to sell Tehran advanced surface-to-air missile systems over Western protests, and Beijing is allegedly providing several dozen new J-10 fighter jets that include some Russian components.

Egyptian President Hosni Mubarak told his political party that “the [Iranians] are trying to devour the Arab states”. Forecast International, a market intelligence and analysis service, cited “worries over Iran” as the major driver of military investment by the Arab states and Israel.

“Regional dynamics continue to be one driving force in the market, with internal security concerns serving as another”, says Forecast’s Middle East analyst Dan Darling. “The Gulf Cooperation Council (GCC) states remain strong defence investors due to worries over Iran. Iran and Syria remain focused on building up their missile and rocket arsenals and acquiring air defence systems … Saudi Arabia finds itself trying to erode Iran’s manpower edge by accumulating ever-greater military-technological superiority over its regional rival.”

A technological imbalance between Iranian conventional forces and those of its rivals has created a spiral effect that has only accelerated the militarisation of the Middle East. To compensate for its conventional military inferiority, Tehran, according to the security analysis group Globalsecurity, has focused on developing nuclear weapons and associated ballistic missiles “as a cost-effective way of countering the stronger air forces of its neighbours”.

Iran remains the central issue influencing the overall Middle East arms market. But close behind are nations like Pakistan and Iraq, which are re-equipping to combat domestic insurgents. Taking all this into consideration, industry and security experts alike are unanimous in their predictions of a steady demand for arms in the Middle East over the indefinite future.

[Industry websites]

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