The annual military expenditure of Libya, estimated at $2.7bn in 2017, is projected to reach $3.3bn by 2022, witnessing a compound annual growth rate (CAGR) of 4.88%, according to a report by Strategic Defence Intelligence (SDI).
Titled ‘Future of the Libyan Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2022’, the report offers insights into the Libyan defence industry.
The country’s capital expenditure allocation in 2017 is $448.7m, which is anticipated to reach $586.8m in 2022, witnessing a CAGR of 5.6%. The growth in defence spending is largely supported by revenues from oil production.
The defence spending is anticipated to be driven by efforts to rebuild the armed forces after the 2011 revolution. Other key factors stimulating the nation's military expenditure include security reforms and the modernisation of systems to replace ageing Soviet-era military hardware.
Libya intends to invest in multi-role, fighter and transport aircraft, personnel weapons, armoured vehicles, body armour and personnel protection equipment, radar and imaging systems, as well as surveillance equipment during 2018-2022.
In addition, the country is expected to increase homeland security spending in response to a range of factors, including stalled disarmament, domestic violence, terrorism, illegal immigration, cross-border smuggling and weapons proliferation.