Future of the Moroccan Defense Industry Market ...Figure 56: Moroccan Conventional Thermal Electricity Net Generation (Billion Kilowatt hours), 2001–2010 ..... 87 Future of the Moroccan

Future of the Moroccan Defense Industry –

Market Attractiveness, Competitive Landscape

and Forecasts to 2018

Future of the Moroccan Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2018

2

TABLE OF CONTENTS

1. Introduction ........................................................................................................................... 9

1.1. What is this Report About? ........................................................................................................... 9

1.2. Definitions ...................................................................................................................................... 9

1.3. Summary Methodology .................................................................................................................11

1.4. SDI Terrorism Index ......................................................................................................................12

1.5. About Strategic Defence Intelligence ..........................................................................................12

2. Executive Summary ............................................................................................................ 13

3. Market Attractiveness and Emerging Opportunities ........................................................ 15

3.1. Defense Market Size Historical and Forecast..............................................................................16

3.1.1. Moroccan annual defense expenditure to reach US$XX billion by 2018 ................................................. 16

3.1.2. Counter-terrorism, border security, and the need to modernize outdated defense equipment to drive

Morocco’s defense expenditure ............................................................................................................................ 18

3.1.3. The country’s defense expenditure as a percentage of GDP is expected to average XX% over the

forecast period ...................................................................................................................................................... 20

3.2. Analysis of Defense Budget Allocation .......................................................................................22

3.2.1. Share of revenue expenditure expected to dominate defense budget over the forecast period.............. 22

3.2.2. Capital expenditure budget expected to increase during the forecast period .......................................... 24

3.2.3. Moroccan revenue expenditure expected to record a CAGR of XX% during the forecast period ........... 26

3.2.4. Per capita defense expenditure expected to increase during the forecast period ................................... 28

3.3. Homeland Security Market Size and Forecast ............................................................................30

3.3.1. Homeland security budget projected to increase during the forecast period ........................................... 30

3.3.2. Human trafficking, drug smuggling, and cybercrime form the major components of homeland security

expenditure ........................................................................................................................................................... 32

3.3.3. Morocco is at a moderate risk from external and internal threats ............................................................ 33

3.4. Benchmarking with Key Global Markets .....................................................................................34

3.4.1. Moroccan defense expenditure expected to increase at a CAGR of XX% over the forecast period ....... 34

3.4.2. Morocco’s military expenditure is limited when compared to countries with the largest defense

expenditure ........................................................................................................................................................... 36

3.4.3. Morocco allocates a moderate percentage of GDP to defense ............................................................... 37

3.4.4. Morocco has a moderate per-capita defense expenditure ....................................................................... 38

3.4.5. Morocco faces moderate threat of terrorism............................................................................................. 39

3.5. Market Opportunities: Key Trends and Growth Stimulators ......................................................42

3.5.1. Military Aircraft .......................................................................................................................................... 42

3.5.2. Diesel Electric Submarine......................................................................................................................... 43

3.5.3. C2/C4ISR .................................................................................................................................................. 44


3

3.5.4. Frigates ..................................................................................................................................................... 45

4. Defense Procurement Market Dynamics ........................................................................... 46

4.1. Import Market Dynamics ...............................................................................................................47

4.1.1. The current need to modernize its armed forces will drive defense imports ............................................ 47

4.1.2. The US and France were the leading suppliers of arms to Morocco during the review period; a trend

expected to carry on during the forecast period ................................................................................................... 48

4.1.3. Aircraft accounted for the majority of defense imports during 2008–2012 ............................................... 49

4.2. Export Market Dynamics ..............................................................................................................50

4.2.1. Morocco does not export arms due to its under-developed domestic arms industry ............................... 50

5. Industry Dynamics .............................................................................................................. 51

5.1. Five Forces Analysis.....................................................................................................................51

5.1.1. Bargaining power of the supplier: medium to high ................................................................................... 52

5.1.2. Bargaining power of the buyer: low .......................................................................................................... 52

5.1.3. Barrier to entry: medium to high ............................................................................................................... 52

5.1.4. Intensity of rivalry: medium ....................................................................................................................... 52

5.1.5. Threat of substitution: medium ................................................................................................................. 52

6. Market Entry Strategy ......................................................................................................... 53

6.1. Market Regulation .........................................................................................................................53

6.1.1. Morocco does not disclose any offset obligations imposed by the country .............................................. 53

6.1.2. Foreign direct investment (FDI) is determined on a case to case basis .................................................. 53

6.2. Market Entry Route .......................................................................................................................53

6.2.1. Government-to-government agreements are the preferred market entry route for foreign OEMs........... 53

6.2.2. Joint venture and license manufacturing agreements provide an attractive market entry route .............. 53

6.3. Key Challenges .............................................................................................................................54

6.3.1. Corruption and lack of transparency characterize the Moroccan defense industry ................................. 54

6.3.2. Domination of companies from the US and Europe poses a challenge to other foreign firms ................. 54

7. Competitive Landscape and Strategic Insights ................................................................ 55

7.1. Competitive Landscape Overview ...............................................................................................55

7.1.1. Foreign suppliers manufacture defense systems overseas and deliver to Morocco ............................... 55

7.2. Key Domestic Companies ............................................................................................................55

7.2.1. Lockheed Martin Corp.: overview ............................................................................................................. 55

7.2.2. Lockheed Martin Corp.: products and services ........................................................................................ 55

7.2.3. Lockheed Martin Corp.: recent announcements and strategic initiatives ................................................. 55

7.2.4. Raytheon: overview .................................................................................................................................. 56

7.2.5. Raytheon: products and services ............................................................................................................. 56

7.2.6. Raytheon: recent announcements and strategic initiatives ...................................................................... 56

7.2.7. Sikorsky Aircraft: overview........................................................................................................................ 57


4

7.2.8. Sikorsky Aircraft: products and services ................................................................................................... 57

7.2.9. Thales: Overview ...................................................................................................................................... 58

7.2.10. Thales: products and services .................................................................................................................. 58

8. Business Environment and Country Risk ......................................................................... 60

8.1. Demographics & Social Statistics ................................................................................................60

8.1.1. Total Rural Population .............................................................................................................................. 60

8.1.2. Total Urban Population ............................................................................................................................. 61

8.1.3. Number of households.............................................................................................................................. 62

8.2. Economic Performance ................................................................................................................63

8.2.1. GDP Per Capita ........................................................................................................................................ 63

8.2.2. GDP, Current Prices ................................................................................................................................. 64

8.2.3. Exports of goods and services (current USD Bn) ..................................................................................... 65

8.2.4. Imports of goods and services (current USD Bn) ..................................................................................... 66

8.2.5. Gross National disposable income (USD Bn)........................................................................................... 67

8.2.6. Manufacturing Output (USD Bn) ............................................................................................................... 68

8.2.7. Consumer Price Index .............................................................................................................................. 69

8.2.8. Local Currency Unit per US Dollars .......................................................................................................... 70

8.2.9. Local Currency Unit per Euro ................................................................................................................... 71

8.2.10. Deposit Rate ............................................................................................................................................. 72

8.2.11. Market capitalization of listed companies (USD Bn) ................................................................................ 73

8.2.12. Market capitalization of listed companies (% of GDP) ............................................................................. 74

8.2.13. Total Government cash surplus/deficit (LCU Bn) ..................................................................................... 75

8.2.14. Government cash surplus/deficit as % of GDP (LCU) .............................................................................. 76

8.2.15. Goods exports as a % of GDP ................................................................................................................. 77

8.2.16. Goods imports as a % of GDP ................................................................................................................. 78

8.2.17. Goods balance as a % of GDP ................................................................................................................. 79

8.2.18. Services imports as a % of GDP .............................................................................................................. 80

8.2.19. Service exports as a % of GDP ................................................................................................................ 81

8.2.20. Services balance as a % of GDP ............................................................................................................. 82

8.2.21. Foreign direct investment, net (BoP, current US$ Bn) ............................................................................. 83

8.2.22. Net foreign direct investment as % of GDP .............................................................................................. 84

8.2.23. International reserves, including gold ....................................................................................................... 85

8.2.24. External Debt as % of GDP ...................................................................................................................... 86

8.3. Energy and Utilities .......................................................................................................................87

8.3.1. Conventional Thermal Electricity Net Generation .................................................................................... 87

8.3.2. Hydroelectricity Net Generation ................................................................................................................ 88

8.3.3. Conventional Thermal Electricity Installed Capacity ................................................................................ 89

8.3.4. Electricity Imports ..................................................................................................................................... 90


5

8.3.5. Proved Natural Gas Reserves .................................................................................................................. 91

8.3.6. Petroleum Consumption ........................................................................................................................... 92

8.3.7. Crude Oil Proved Reserves ...................................................................................................................... 93

8.3.8. Total Non-Hydro Renewable Electricity Net Generation (Billion Kilowatts) .............................................. 94

8.4. Infrastructure .................................................................................................................................95

8.4.1. Roads, total network (km) ......................................................................................................................... 95

8.4.2. Rail lines (total route-km) .......................................................................................................................... 96

8.4.3. Overall construction (US$ Million) ............................................................................................................ 97

8.4.4. Air transport, freight .................................................................................................................................. 98

8.5. Minerals .........................................................................................................................................99

8.5.1. Mining, Manufacturing, Utilities Output ..................................................................................................... 99

8.6. Technology .................................................................................................................................. 100

8.6.1. Patents Granted ...................................................................................................................................... 100

8.7. Telecommunication .................................................................................................................... 101

8.7.1. Telephone Lines ..................................................................................................................................... 101

8.7.2. Telephone Lines Penetration Rate ......................................................................................................... 102

9. Appendix ............................................................................................................................ 103

9.1. About SDI ..................................................................................................................................... 103

9.2. Disclaimer .................................................................................................................................... 103


6

LIST OF FIGURES

Figure 1: Moroccan Defense Expenditure, 2009-2013 ........................................................................................................................................ 16 Figure 2: Moroccan Defense Expenditure, 2014-2018 ........................................................................................................................................ 17 Figure 3: Moroccan GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2009-2013 ........ 20 Figure 4: Moroccan GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2014-2018 ........ 21 Figure 5: Moroccan Defense Budget Split Between Capital and Revenue Expenditure (%), 2009-2013 ............................................................. 22 Figure 6: Moroccan Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2018 ............................................................. 23 Figure 7: Moroccan Capital Budget Allocation (US$ billion),2009–2013 .............................................................................................................. 24 Figure 8: Moroccan Capital Budget Allocation (US$ billion), 2014–2018 ............................................................................................................. 25 Figure 9: Moroccan Revenue Budget Expenditure (US$ billion), 2009–2013 ...................................................................................................... 26 Figure 10: Moroccan Revenue Budget Allocation (US$ billion), 2014–2018 ........................................................................................................ 27 Figure 11: Moroccan Per Capita Defense Expenditure (US$), 2009-2013 .......................................................................................................... 28 Figure 12: Moroccan Per Capita Defense Expenditure (US$), 2014-2018 .......................................................................................................... 29 Figure 13: Moroccan Homeland Security Expenditure (US$ million), 2009–2013 ................................................................................................ 30 Figure 14: Moroccan Homeland Security Budget (US$ million), 2014–2018 ....................................................................................................... 31 Figure 15: SDI Terrorism Heat Map, 2013 .......................................................................................................................................................... 33 Figure 16: Benchmarking with Key Markets – 2009-2013 vs. 2014-2018 ........................................................................................................... 35 Figure 17: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2013 and 2018 ........................................................... 36 Figure 18: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2013 ..................................................................... 37 Figure 19: Per-capita Defense Expenditure of Largest Military Spenders in the World (US$), 2013 .................................................................... 38 Figure 20: SDI Terrorism Index, 2013 ................................................................................................................................................................. 39 Figure 21: Morocco’s Military Aircraft Market Size (US$ Million), 2013–2023 ...................................................................................................... 42 Figure 22: Morocco’s Diesel Electric Submarine Market Size (US$ Million), 2013–2023 ..................................................................................... 43 Figure 23: Morocco’s C2/C4ISR Market Size (US$ Million), 2013–2023 ............................................................................................................. 44 Figure 24: Morocco’s Frigates Market Size (US$ Million), 2012–2022 ................................................................................................................ 45 Figure 25: Moroccan Defense Import Trend(US$ million), 2008–2012 (TIV values) ............................................................................................ 47 Figure 26: Moroccan Defense Imports by Country (%),2008–2012 ..................................................................................................................... 48 Figure 27: Moroccan Defense Imports by Category (%), 2008–2012 .................................................................................................................. 49 Figure 28: Industry Dynamics Porter’s Five Forces Analysis ............................................................................................................................... 51 Figure 29: Moroccan Rural Population (In Millions), 2009–2018 ......................................................................................................................... 60 Figure 30: Moroccan Urban Population (In Millions), 2009–2018 ........................................................................................................................ 61 Figure 31: Moroccan Number of Households (In Millions), 2008–2017 ............................................................................................................... 62 Figure 32: Moroccan GDP Per Capita, 2008–2017 ............................................................................................................................................. 63 Figure 33: Moroccan GDP, Current Prices (US$ Billion), 2008–2017 .................................................................................................................. 64 Figure 34: Moroccan Exports of goods and services (current USD Bn), 2002–2011 ........................................................................................... 65 Figure 35: Moroccan Imports of goods and services (current USD Bn), 2002–2011 ........................................................................................... 66 Figure 36: Moroccan Gross National disposable income (USD Bn), 2002–2011 ................................................................................................. 67 Figure 37: Moroccan Manufacturing Output (USD Bn), 2003–2011 .................................................................................................................... 68 Figure 38: Moroccan Consumer Price Index, 2008–2017 ................................................................................................................................... 69 Figure 39: Local Currency per USD, 2009–2018 ................................................................................................................................................ 70 Figure 40: Local Currency per Euro, 2008–2017 ................................................................................................................................................ 71 Figure 41: Deposit Rate (%), 2002–2011 ............................................................................................................................................................ 72 Figure 42: Moroccan Market capitalization of listed companies (USD Bn), 2003–2012 ....................................................................................... 73 Figure 43: Moroccan Market capitalization of listed companies (% of GDP), 2002–2011 .................................................................................... 74 Figure 44: Moroccan Total Government cash surplus/deficit (LCU Bn), 2004–2011 ............................................................................................ 75 Figure 45: Moroccan Government cash surplus/deficit as % of GDP (LCU), 2002–2011 .................................................................................... 76 Figure 46: Moroccan Goods exports as a % of GDP, 2002–2011 ....................................................................................................................... 77 Figure 47: Moroccan Goods imports as a % of GDP, 2002–2011 ....................................................................................................................... 78 Figure 48: Moroccan Goods balance as a % of GDP, 2001–2010 ...................................................................................................................... 79 Figure 49: Moroccan Services imports as a % of GDP, 2002–2011 .................................................................................................................... 80 Figure 50: Moroccan Service exports as a % of GDP, 2001–2010 ...................................................................................................................... 81 Figure 51: Moroccan Services balance as a % of GDP, 2002–2011 ................................................................................................................... 82 Figure 52: Moroccan Foreign direct investment, net (BoP, current US$ Bn), 2002–2011 .................................................................................... 83 Figure 53: Moroccan Net foreign direct investment as % of GDP, 2002–2011 .................................................................................................... 84 Figure 54: Moroccan International reserves, including gold (US$ Billion), 2002–2011 ........................................................................................ 85 Figure 55: Moroccan External Debt as % of GDP (%), 2001–2010 ..................................................................................................................... 86 Figure 56: Moroccan Conventional Thermal Electricity Net Generation (Billion Kilowatt hours), 2001–2010 ....................................................... 87


7

Figure 57: Moroccan Hydroelectricity Net Generation (Billion Kilowatt hours), 2001–2010 .................................................................................. 88 Figure 58: Moroccan Conventional Thermal Electricity Installed Capacity (Million Kilowatts), 2001–2010 ........................................................ 89 Figure 59: Moroccan Electricity Imports (Billion Kilowatt hours), 2001–2010 ....................................................................................................... 90 Figure 60: Moroccan Proved Natural Gas Reserves (Trillion Cubic Feet), 2004–2013 ........................................................................................ 91 Figure 61: Moroccan Petroleum Consumption (Thousand Barrels Per Day), 2003–2012 .................................................................................... 92 Figure 62: Moroccan Crude Oil Proved Reserves (Billion Barrels), 2004–2013 ................................................................................................... 93 Figure 63: Moroccan Total Non-Hydro Renewable Electricity Net Generation (Billion Kilowatts), 2002–2010 ..................................................... 94 Figure 64: Moroccan Roads, total network (km), 2003–2010 .............................................................................................................................. 95 Figure 65: Moroccan Rail lines (total route-km), 2002–2011 ............................................................................................................................... 96 Figure 66: Moroccan Overall construction (US$ Million), 2007–2016 .................................................................................................................. 97 Figure 67: Moroccan Air transport freight (million ton-km), 2000–2009 ............................................................................................................... 98 Figure 68: Moroccan Mining, Manufacturing, Utilities Output (US$ Billion), 2002–2011 ...................................................................................... 99 Figure 69: Moroccan Patents Granted, 2003–2012............................................................................................................................................100 Figure 70: Moroccan Telephone Lines (In Million), 2002–2011 ..........................................................................................................................101 Figure 71: Moroccan Telephone Lines Penetration Rate (Per 100 People), 2002–2011 ....................................................................................102


8

LIST OF TABLES

Table 1: Moroccan Defense Expenditure, 2009-2013 ......................................................................................................................................... 16 Table 2: Moroccan Defense Expenditure, 2014-2018 ......................................................................................................................................... 17 Table 3: Moroccan GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2009-2013 .......... 20 Table 4: Moroccan GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2014-2018 .......... 21 Table 5: Moroccan Defense Budget Split Between Capital and Revenue Expenditure (%), 2009-2013 .............................................................. 22 Table 6: Moroccan Defense Budget Split Between Capital and Revenue Expenditure (%), 2014-2018 .............................................................. 23 Table 7: Moroccan Capital Budget Allocation (US$ Billion), 2009–2013.............................................................................................................. 24 Table 8: Moroccan Capital Budget Allocation (US$ billion), 2014–2018 .............................................................................................................. 25 Table 9: Moroccan Revenue Budget Expenditure (US$ billion), 2009–2013 ....................................................................................................... 26 Table 10: Moroccan Revenue Budget Allocation (US$ billion), 2014–2018 ......................................................................................................... 27 Table 11: Moroccan Per Capita Defense Expenditure (US$), 2009-2013 ............................................................................................................ 28 Table 12: Moroccan Per Capita Defense Expenditure (US$), 2014-2018 ............................................................................................................ 29 Table 13: Moroccan Homeland Security Expenditure (US$ million), 2009–2013 ................................................................................................. 30 Table 14: Moroccan Homeland Security Budget (US$ million), 2014–2018 ........................................................................................................ 31 Table 15: Benchmarking with Key Markets – 2009–2013 vs. 2014–2018............................................................................................................ 34 Table 16: SDI Terrorism Index ............................................................................................................................................................................ 40 Table 17: Lockheed Martin Corp.– Product Focus .............................................................................................................................................. 55 Table 18: Raytheon – product focus ................................................................................................................................................................... 56 Table 19: Sikorsky Aircraft– Product Focus ........................................................................................................................................................ 57 Table 20: Thales – Product Focus ...................................................................................................................................................................... 58


9

1. Executive Summary

Moroccan Morocco is expected to spend US$XX billion on defense over the forecast period,

primarily to counter terrorist threats and bolster its defense capabilities

The Moroccan defense industry, which valued US$XX billion in 2013, is expected to grow at a CAGR of

XX% over the forecast period and reach US$XX billion by 2018. The threats of attacks from the

domestic terrorist groups have necessitated the increased spending on counter-terrorism and counter-

insurgency efforts. Another major factor driving the country’s future defense expenditure is Morocco’s

involvement in an arms race with adjoining Algeria, which gets a steady supply of weapons from Russia.

On a cumulative basis, Morocco is expected to spend a total of US$XX billion on its armed forces over

the forecast period compared to US$XX billion over 2009-2013. However, as a percentage of GDP,

defense expenditure is forecast to drop from XX% in 2014 to XX% in 2018.

Over the review period, Morocco allocated a budget of US$XX billion for capital expenditure. On a

cumulative basis, capital expenditure is projected to increase to US$XX billion over the forecast period,

as a result of the country’s initiatives to procure advanced and high-end defense arms and ammunitions.

During 2014-2018, the Moroccan government is expected to spend the majority of its capital expenditure

on modernizing its Army, Navy, and Air Force. Key opportunities for equipment suppliers are expected

in the fields of C4ISR systems, unmanned aerial vehicles (UAVs), surveillance equipment for

monitoring, submarines, amphibious ships, naval dockyard infrastructure, fighter jets and associated

support systems, and helicopters.


10

2. Market Attractiveness and Emerging Opportunities

As one of the major non-NATO allies of the US, the defense spending capability of Morocco is expected to

increase over the forecast period. The defense budget, which is projected to be US$XX billion in 2014, is

expected to increase at a CAGR of XX% during the forecast period and reach US$XX billion by 2018. This

growth is primarily due to the government’s steps to combat internal and external terrorist attacks,

strengthen border security and procure new defense systems. Per-capita defense expenditure is expected

to grow during the forecast period from US$XX in 2014 to US$XX in 2018.

The capital expenditure budget is forecast to increase from US$XX billion in 2014 to US$XX billion in

2018, recording a CAGR of XX%, due to the government’s modernization plans. The country’s budget for

homeland security is projected to increase over the forecast period, driven by increasing threats from

human trafficking, drug smuggling, and internal security. Demand for equipment over the forecast period is

mainly expected to revolve around fighter aircraft, diesel electric submarine, surveillance and monitoring

equipment, and patrol ships.


11

2.1. Defense Market Size Historical and Forecast

2.1.1. Moroccan annual defense expenditure to reach US$XX billion by 2018

During the review period Morocco’s defense expenditure increased from US$XX billion in 2009 to

US$XX billion in 2013, increasing at a CAGR of XX%. To counter external threats as well as ensure

political and social stability within the nation, the Moroccan government steadily increased its defense

budget in the review period; a trend that is expected to continue over the forecast period. In the last few

years, Morocco has consistently exported advanced arms and ammunitions such as fighter and training

aircraft, missiles, tanks, and frigates to strengthen its armed forces. On a cumulative basis, total

expenditure was US$XX billion during 2009-2013 and is expected to increase to US$XX billion over the

forecast period. Morocco’s future procurement plan includes warplanes, tactical airlifters, helicopters,

submarines, radar systems, and naval vessels.

The following table and figure show the Moroccan defense expenditure during the review period:

Table 1: Moroccan Defense Expenditure, 2009 - 2013

Year Defense expenditure (US$ bn)

Defense growth percentage

2009 XX XX

2010 XX XX

2011 XX XX

2012 XX XX

2013 XX XX

CAGR 2009-2013 XX%

Source: Moroccan Ministry of National Defense and SDI analysis © SDI

Figure 1: Moroccan Defense Expenditure, 2009 - 2013


Defe

nse E

xp

en

dit

ure

XX

XX

XX

XX

XX

XX

XX

2009 2011 2012 2013

Revenue Expenditure Capital Expenditure

2010

Growth Rate (%)


12

The following table and figure show projected defense expenditure of the Moroccan over the forecast period:

Table 2: Moroccan Defense Expenditure, 2014-2018

Year Defense expenditure (US$ bn)

Defense growth percentage

2014 XX XX

2015 XX XX

2016 XX XX

2017 XX XX

2018 XX XX

CAGR 2014-2018 XX%


Figure 2: Moroccan Defense Expenditure, 2014-2018


Defe

nse E

xp

en

dit

ure

XX

XX

XX

XX

XX

XX

XX

2014 2016 2017 2018


2015

Growth Rate (%)


13

2.2. Analysis of Defense Budget Allocation

2.2.1. Capital expenditure budget expected to increase during the forecast period

Morocco’s defense capital expenditure remained stable over the review period, registering an average

of US$XX billion. During the forecast period, capital expenditure is expected to increase from US$XX

billion in 2014 to US$XX billion in 2018 at a CAGR of XX%, with an average expenditure of US$XX

billion per year. During this period, the country is expected to invest in the procurement of advanced

fighter and training aircraft, naval vessels, and hi-tech arms and ammunitions for the Royal Moroccan

Armed Forces.

The following table and chart display the Moroccan defense budget share of capital and revenue

expenditure during the review period:

Table 3: Moroccan Defense Budget Split Between Capital and Revenue Expenditure (%), 2009-2013

Year Capital Expenditure Share Revenue Expenditure Share

2009 XX XX

2010 XX XX

2011 XX XX

2012 XX XX

2013 XX XX


Figure 3: Moroccan Defense Budget Split Between Capital and Revenue Expenditure (%), 2009-2013


0%

20%

40%

60%

80%

100%

2009 2010 2011 2012 2013


%

Perc

en

tag

e o

f D

efe

ns

e E

xp

en

dit

ure


14

The following table and chart display the Moroccan defense budget share of capital and revenue

expenditure over the forecast period:

Table 4: Moroccan Defense Budget Split Between Capital and Revenue Expenditure (%), 2014 -2018

Year Capital Expenditure Share Revenue Expenditure Share

2014 XX XX

2015 XX XX

2016 XX XX

2017 XX XX

2018 XX XX


Figure 4: Moroccan Defense Budget Split Between Capital and Revenue Expenditure (%), 2014 -2018


0%

20%

40%

60%

80%

100%

2014 2015 2016 2017 2018


%

Perc

en

tag

e o

f D

efe

ns

e E

xp

en

dit

ure


15

2.3. Homeland Security Market Size and Forecast

2.3.1. Homeland security budget projected to increase during the forecast period

Morocco’s homeland security (HLS) lies in the hands of the paramilitary forces that consist of Auxiliary

Forces, General Directorate of National Security (DGNS) or the police force, and Directorate for

Surveillance of the Territory (DST). The country’s HLS budget, which stood at US$XX million in 2013,

recorded a CAGR of XX% over the review period, and is expected to increase from US$XX million in

2014 to US$XX million in 2018. The growth will be driven efforts to combat cybercrime, human

trafficking, and drug smuggling. In order to counter the threats, Morocco is expected to invest heavily in

surveillance and intelligence technologies, such as metal detectors, intrusion detection systems, motion

sensors, and CCTV (closed circuit television) systems.

The following table and figure show the Moroccan HLS budget during the review period:

Table 5: Moroccan HLS Budget (US$ Billion), 2009 - 2013

Year HLS budget (US$ bn)

2009 XX

2010 XX

2011 XX

2012 XX

2013 XX

Source: Ministry of Public Safety, Morocco and SDI analysis © SDI

Figure 5: Moroccan HLS Budget (US$ Billion), 2009 - 2013


Ho

mela

nd

Secu

rity

Exp

en

dit

ure

XX

XX

XX

XX

XX

XX

XX

2009 2011 2012 2013 2010


16

The following table and figure show the Moroccan HLS budget over the forecast period:

Table 6: Moroccan HLS Budget (US$ Billion), 2014 - 2018

Year HLS budget (US$ bn)

2014 XX

2015 XX

2016 XX

2017 XX

2018 XX


Figure 6: Moroccan HLS Budget (US$ Billion), 2014 - 2018


Ho

mela

nd

Secu

rity

Exp

en

dit

ure

XX

XX

XX

XX

XX

XX

XX

2014 2016 2017 2018 2015

Documents

Future of the Moroccan Defense Industry Market ...Figure 56: Moroccan Conventional Thermal Electricity Net Generation (Billion Kilowatt hours), 2001–2010 ..... 87 Future of the Moroccan