Yemen’s annual defence expenditure is estimated to be $1.7bn. This is forecast to reach $1.8bn by 2022, rising at a compound annual growth rate (CAGR) of 1.60%, according to a report by Strategic Defence Intelligence (SDI).

Titled ‘Future of the Yemeni Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2022’, the report analyses the current and future trends of the Yemeni defence industry.

The allocation for capital expenditure is projected at an average of 21.4% between 2018 and 2022, while revenue expenditure allocation is anticipated to reach 78.6% of its total defence budget over the forecast period.

“Yemen’s revenue expenditure allocation is anticipated to reach 78.6% of its total defence budget.”

Multiple factors have influenced the increased defence expenditure, including the rising military power in neighbouring countries and the unstable security situation in the region.

The Government of Yemen acquired refurbished Belarusian T-80 tanks, 81-120mm calibre mortars, AMX-56 Leclerc main battle tanks, aircraft, and engines between 2012 and 2016.

The government has the intention of acquiring a range of defence equipment and systems from Belarus, Russia and South Africa during the next five years.

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The modernisation of Yemeni Armed Forces systems will drive defence imports over the forecast period as the country lacks domestic defence manufacturing capabilities, the report adds.