A challenging economic picture during 2020 and changing dynamics in procurement processes, timelines and requirements may alter the longer-term growth of defence budgets in the region.
Ukraine and the United Arab Emirates (UAE) have signed a collaboration agreement that brings together the defence industrial organisations of the two countries. During a visit by Ukrainian president Volodymyr Zelenskyy to the UAE on 14 Febru.
Paramount Group acquires stake in Burnham Global
11 January 2021
by Charles Forrester
Paramount Group’s new Advanced Training and Support division will undertake a range of training and capacity building operations, including pilot training and dog-handling. (Paramount Group)
South Africa’s Paramount Group has revealed that it has taken a “strategic ownership stake” in Dubai-based defence services provider Burnham Global.
Established in April 2020 from part of the UK-based Risk Advisory’s Government Services unit, Burnham Global undertakes capacity-building training and mentoring for armed forces, with previous experience on European, UK, and US-funded projects in Lebanon, Jordan, and Uganda. These projects have included counter-terrorism and counter-IED training, staff officer training, and border security development.
Oman releases 2021 budget, cuts defence spending
11 January 2021
by Charles Forrester
Oman has released its government budget for 2021, revealing that 2020 defence and security spending is anticipated to have been reduced by 9% during the year and 2021 spending would be reduced by 14.6% year on year.
The budget documentation, released on 1 January, showed that defence and security spending was to fall from OMR3.45 billion (USD8.93 billion) in 2020 to OMR2.965 billion in 2021. The amount further reflects a 5.12% reduction on the anticipated final defence and security budget of OMR3.125 billion.
Oman’s new defence and security budget has been cut to OMR2.965 billion. (Getty Images)
As part of its initial responses to lower oil prices and Covid-19, by May 2020 the Omani Ministry of Finance (MoF) had announced that the defence and security budget would be cut by 10% and development budgets for the country had also been reduced.
Saudi Arabia cuts defence spending
by Charles Forrester
Saudi Arabia will cut its defence budget for 2021 by 3.8% to SAR175 billion (USD46.62 billion), marking a continued decline in the country’s defence spending, according to budget documentation released on 16 December.
Overall government spending was reduced to SAR990 billion, down 2.94% year-on-year. Government revenues are anticipated to be SAR849 billion, creating a budget deficit of SAR141 billion, or 4.9% of GDP. Defence expenditure as a percentage of public expenditure is expected to remain relatively stable in nominal terms at 17.68%. Defence spending as a proportion of GDP is also forecast to decline from 7.04% in 2020 to 5.81% in 2021, a level not seen since 2013, as the overall budget is also reduced to 2014 levels.