Future of the Georgian Defense Industry Attractiveness, … - SP.pdf · 2015-09-03 · Future of...

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Future of the Georgian Defense Industry – Market

Attractiveness, Competitive Landscape and

Forecasts to 2020

Future of the Georgian Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts to 2020

2

Summary

“Future of the Georgian Defense Industry – Market Attractiveness, Competitive Landscape and Forecasts

to 2020” report offers the reader detailed analysis of the defense budget over the next five years. Alongside

it offers insights into the market opportunities and entry strategies adopted by foreign OEMs (original

equipment manufacturers) to gain a market share in the Georgian defense industry.

The report provides detailed analysis of the current industry size and growth expectations during 2016–

2020, including highlights of the key growth stimulators. It also benchmarks the industry against key global

markets and provides detailed understanding of emerging opportunities in specific areas.

Key Findings

The Georgian defense budget stands at US$XX million in 2015, registering a CAGR of -XX% during the

historic period. An increase in defense expenditure is expected during the forecast period, at a CAGR of

XX%, to value US$XX million in 2020. The country’s defense expenditure will be driven by factors such as

the need to fulfill interoperability requirements with NATO, the modernization of the armed forces and

upgrading military hardware, and the threats posed by Russia. In addition, capital expenditure is expected

to register a CAGR of XX% during the forecast period, to value US$XX million in 2020. On a cumulative

basis, the country is estimated to spend US$XX million over the forecast period on the procurement of

defense equipment. In the coming years demand for equipment is mainly expected to revolve around

military helicopters, armored vehicles, fighter aircraft and missile defense systems, and anti-tank and anti-

aircraft capabilities. The majority of the defense budget will go towards revenue expenditure, which

includes personnel salaries, operational expenses, training, and development. The country’s homeland

security expenditure is expected to grow at a CAGR of XX% during the forecast period to value US$XX

million in 2020. The country is expected to procure biometric systems, x-ray machines, computer systems,

and communication and alarm systems. Georgia’s homeland security expenditure is mainly driven by drugs

and human trafficking, as well as internal territorial disputes.

Key Features and Benefits

The report provides detailed analysis of the Georgian defense industry during 2011–2020, including the

factors that influence the military expenditure. It provides detailed expectations of growth rates and

projected total expenditure.

It provides the manufacturers with insights on market opportunities along with industry structure and

dynamics prevalent in the country. In addition, the report focuses on the regulations governing the

Georgian defense industry and the potential market entry strategies with an expert analysis of the

competitive structure.


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1. Market Attractiveness and Emerging Opportunities

1.1. Defense Market Size Historical and Forecast

1.1.1. Georgian defense expenditure expected to register a CAGR of XX% over the forecast period

In 2015, the Georgian defense budget values US$XX million and registered a CAGR of -XX% during the

historic period. The decline in defense expenditure during 2011–2015 is primarily due to the democratic

government’s focus on reducing its defense expenditure and diverting the same towards other economic

projects. However, the country’s military contributions to NATO operations, along with the threats posed by

Russia with regards to its claim on the separatist regions of Abkhazia and South Ossetia, and upgrading its

military arsenal is expected to drive Georgian defense expenditure over the forecast period. The country’s

defense budget is anticipated to grow at a CAGR of XX% over the forecast period to value US$XX million in

2020.

The following table and figure show the Georgian defense expenditure during the historic period:

Table 1: Georgian Defense Expenditure ( US$ Billion), 2011–2015

Year Defense expenditure (US$ bn)

Defense growth percentage

2011

2012

2013

2014

2015

CAGR 2011–2015

Source: Ministry of Defense and SDI analysis © SDI

Figure 1: Georgian Defense Expenditure (US$ Billion), 2011–2015


-5%

0%

5%

10%

15%

20%

25%

30%

35%

0

1

2

3

4

5

6

2011 2012 2013 2014 2015

Gro

wth

rate

(%)

Def

ense

exp

end

itu

re (U

S$

Bill

ion

)

Defense expenditure (US$ bn) Defense growth percentage


4

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

Table 2: Georgian Defense Expenditure (US$ Billion), 2016–2020

Year Defense expenditure (US$ bn)

Defense growth percentage

2016

2017

2018

2019

2020

CAGR 2016–2020


Figure 2: Georgian Defense Expenditure (US$ Billion), 2016–2020


0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0

1

2

3

4

5

6

7

2016 2017 2018 2019 2020

Gro

wth

ra

te (

%)

De

fen

se

ex

pe

nd

itu

re (

US

$ B

illi

on

)

Defense expenditure (US$ bn) Defense growth percentage


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1.2. Analysis of Defense Budget Allocation

1.2.1. Share of capital expenditure expected to increase over forecast period

During 2011–2015, an average of XX% of the country’s total defense budget was allocated towards capital

expenditure. Georgian defense capital expenditure suffered due to the government’s decision to divert its

resources towards the development of sectors such as manufacturing, finance, and real estate. Moreover,

the Georgian MoD’s focus is on creating a mobile, well trained, and educated professional army, which

implies an increase in the revenue expenditure during the forecast period.

Capital expenditure is forecast to be XX% in 2015 and is expected to increase during the forecast period,

due to the country’s plan to replace its Soviet-era helicopters with Western models from the US. Moreover,

Russia’s annexation of Ukraine’s Crimea peninsula poses a threat to the country and it plans to equip its

armed forces with advanced equipment, technology, command systems, and adequate training, which in turn

is expected to drive the country’s military expenditure over the forecast period. The remaining defense

budget is allocated to revenue expenditure, which includes personnel salaries, and the operation and

maintenance costs of equipment and defense facilities.

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

during the historic period:

Table 3: Georgian Defense Budget Split Between Capital and Revenue Expenditure (%), 2011–2015

Year Capital Expenditure Share Revenue Expenditure Share

2011

2012

2013

2014

2015

Source: Ministry of Defense, Georgia and SDI analysis © SDI

Figure 3: Georgian Defense Budget Split Between Capital and Revenue Expenditure (%), 2011–2015


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015

Def

ense

Bud

get

Spl

it (%

)

Capital Expenditure Share Revenue Expenditure Share


6

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

over the forecast period:

Table 4: Georgian Defense Budget Split Between Capital and Revenue Expenditure (%), 2016–2020

Year Capital Expenditure Share Revenue Expenditure Share

2016

2017

2018

2019

2020

Source: Ministry of Defense, Georgia and SDI analysis © SDI

Figure 4: Georgian Defense Budget Split Between Capital and Revenue Expenditure (%), 2016–2020


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020

Defe

nse B

ud

get

Sp

lit

(%)

Capital Expenditure Share Revenue Expenditure Share


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1.3. Homeland Security Market Size and Forecast

1.3.1. Georgian homeland security expected to grow at a steady pace

Georgia’s homeland security (HLS) values US$XX million in 2015, and registered a CAGR of -XX% during

the historic period. However, it is anticipated to register a CAGR of XX% during the forecast period to value

US$XX million in 2020. This increase is primarily due to the country’s focus on combating human trafficking,

drug trafficking, and internal territorial disputes. Consequently, the Georgian MoD focuses on the

procurement of biometric systems, x-ray machines, and surveillance technology at the national borders in

order to combat human and drug trafficking.

The table and chart below show the Georgian homeland security expenditure during the historic period:

Table 5: Georgian Homeland Security Expenditure (US$ Billion), 2011–2015

Year Homeland expenditure (US$

million) % Growth

2011

2012

2013

2014

2015

Source: Ministry of Finance, Georgia and SDI analysis © SDI

Figure 5: Georgian Homeland Security Expenditure (US$ Billion), 2011–2015

Source: Ministry of Finance, Georgia and SDI analysis © SDI

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

0

1

2

3

4

5

6

7

2011 2012 2013 2014 2015

Gro

wth

rate

(%)

Hom

elan

d Se

curit

y ex

pend

iture

(US$

Bill

ion)

Homeland Security Budget (US$ bn) Growth rate (%)


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2. Industry Dynamics - Porter’s Five Forces Analysis

Figure 4: Industry Dynamics – Porter’s Five Forces Analysis

Source: SDI analysis © SDI

Intensity of Rivalry Bargaining Power of Supplier

Bargaining Power of Buyer

Barrier to Entry

Threat of Substitute


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Report Methodology

SDI’s dedicated research and analysis teams consist of experienced professionals with a background in

industry research and consulting in the defense sector. The following research methodology is followed for all

databases and reports:

Secondary Research

The research process begins with exhaustive secondary research to source reliable qualitative and

quantitative information related to the defense market. The secondary research sources that are typically

referred to include, but are not limited to:

Industry associations

National government documents and statistical databases

Company websites, annual reports, financial reports, broker reports, investor presentations

Industry trade journals and other literature

Internal and external proprietary databases

News articles, press releases, and webcasts specific to the companies operating in the market

Primary Research

SDI conducts hundreds of primary interviews a year with industry participants and commentators in order to

validate its data and analysis. A typical research interview fulfills the following functions:

Provides first-hand information on market size, market trends, growth trends, competitive landscape,

and future outlook

Helps to validate and strengthen secondary research findings

Further develops the analysis team’s expertise and market understanding

Primary research involves e-mail interactions, telephone interviews, and face-to-face interviews for

each market category, division, and sub-division across geographies

The participants who typically take part in such a process include, but are not limited to:

Industry participants: CEOs, VPs, business development managers, market intelligence managers,

and national sales managers

External experts: investment bankers, valuation experts, research analysts, and key opinion leaders

specializing in defense markets

Conventions

Currency conversions are performed on the basis of average annual conversion rate format

calculations

All the values in tables, with the exception of compounded annual growth rate (CAGR) and

compounded annual rate of change (CARC), are displayed to one decimal place; therefore, due to

this rounding method, growth rates may appear inconsistent with absolute values

The forecasted values are projected on the basis of nominal values; the inflation was not taken into account


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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 Georgian annual defense expenditure to reach US$XX million by 2020 ................................................. 16

3.1.2 NATO membership, threats posed by Russia, and counter-terrorism and modernization plans drive

defense expenditure .............................................................................................................................................. 20

3.1.3 Defense expenditure as a percentage of GDP expected to decline during 2016–2020 .......................... 21

3.1.4 Per-capita defense expenditure expected to increase over the forecast period ...................................... 23

3.2 Analysis of Defense Budget Allocation .......................................................................................25

3.2.1 Capital expenditure allocation expected to increase during the forecast period ...................................... 25

3.2.2 Capital expenditure budget expected to grow during the forecast period ................................................ 28

3.2.3 MoD to spend US$XX billion on revenue expenditure during 2016–2020 ............................................... 32

3.3 Homeland Security Market Size and Forecast ............................................................................36

3.3.1 Homeland security market expected to grow at a CAGR of XX% during the forecast period .................. 36

3.3.2 Human trafficking, drug trafficking, and internal disputes to drive homeland security expenditure ......... 40

3.3.3 Georgia falls under “some risk” of terrorism ............................................................................................. 41

3.3.4 Georgia has terrorism index score of 0.2 ................................................................................................. 42

3.3.5 Georgia faces moderate risk of terrorist attack......................................................................................... 43

3.4 Benchmarking with Key Global Markets .....................................................................................45

3.4.1 Georgia’s defense budget to increase at a CAGR of XX% during the forecast period ............................ 45

3.4.2 Georgia’s defense budget is very small compared to top spenders in the global defense market .......... 47

3.4.3 Georgia allocates a higher share of its GDP to defense than NATO requires ......................................... 48

3.5 Market Opportunities: Key Trends and Growth Stimulators ......................................................49

3.5.1 Military Helicopters will witness a surge in demand ................................................................................. 49

3.5.2 Demand for armored vehicles expected to increase ................................................................................ 49

3.5.3 Demand for fighter aircraft and missile defense systems expected to increase ...................................... 49

3.5.4 Anti-tank and anti-aircraft capabilities expected to be in demand ............................................................ 50

4 Defense Procurement Market Dynamics ........................................................................... 51

4.1 Import Market Dynamics ...............................................................................................................52


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4.1.1 Defense imports anticipated to decline during the forecast period .......................................................... 52

4.1.2 Bulgaria dominates arms imports to Georgia ........................................................................................... 53

4.1.3 Armored vehicles and artillery were the only imports during 2010–2014 ................................................. 54

4.2 Export Market Dynamics ..............................................................................................................55

4.2.1 Georgia does not export arms due to an undeveloped domestic arms industry ...................................... 55

5 Industry Dynamics .............................................................................................................. 56

5.1 Five Forces Analysis.....................................................................................................................56

5.1.1 Bargaining power of supplier: high ........................................................................................................... 57

5.1.2 Bargaining power of buyer: low ................................................................................................................ 57

5.1.3 Barriers to entry: high ............................................................................................................................... 57

5.1.4 Intensity of rivalry: low .............................................................................................................................. 57

5.1.5 Threat of substitution: low ......................................................................................................................... 57

6 Market Entry Strategy ......................................................................................................... 58

6.1 Market Regulation .........................................................................................................................58

6.1.1 Georgia does not disclose any offset obligations imposed by the country ............................................... 58

6.1.2 FDI in the defense sector is permitted only after review by the government ........................................... 58

6.2 Market Entry Route .......................................................................................................................59

6.2.1 Foreign military sales (FMS) and direct commercial sales (DCS) preferred market entry routes ............ 59

6.2.2 Establishment of subsidiaries provides an alternative entry route ........................................................... 59

6.3 Key Challenges .............................................................................................................................60

6.3.1 Proposed arms embargo against Georgia makes it difficult for defense companies ............................... 60

6.3.2 Small defense budget does not attract investors and suppliers ............................................................... 60

7 Competitive Landscape and Strategic Insights ................................................................ 61

7.1 Competitive Landscape Overview ...............................................................................................61

7.2 Key Public Sectors Companies ....................................................................................................61

7.2.1 Tbilisi Aircraft Manufacturing: overview .................................................................................................... 61

7.2.2 Tbilisi Aircraft Manufacturing – Major Products and Services .................................................................. 61

7.2.3 Tbilisi Aircraft Manufacturing: recent contracts and strategic initiatives ................................................... 62

7.2.4 Tbilisi Aircraft Manufacturing – Alliances .................................................................................................. 62

8 Business Environment and Country Risk ......................................................................... 63

8.1 Demographics & Social Statistics ................................................................................................63

8.1.1 Total Rural Population .............................................................................................................................. 63

8.1.2 Total Urban Population ............................................................................................................................. 64

8.1.3 Number of households.............................................................................................................................. 65

8.2 Economic Performance ................................................................................................................66

8.2.1 GDP Per Capita ........................................................................................................................................ 66

8.2.2 GDP, Current Prices ................................................................................................................................. 67


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8.2.3 Consumer Price Index .............................................................................................................................. 68

8.2.4 Wholesale Price Index .............................................................................................................................. 69

8.2.5 Local Currency Unit per Euro ................................................................................................................... 70

8.2.6 Market Capitalization of Listed Companies .............................................................................................. 71

8.2.7 Market Capitalization of Listed Companies (% of GDP) ........................................................................... 72

8.2.8 Government Cash Surplus/Deficit ............................................................................................................ 73

8.2.9 Government Cash Surplus/Deficit as % of GDP ...................................................................................... 74

8.2.10 Central Government Debt ......................................................................................................................... 75

8.2.11 Central Government Debt as % of GDP ................................................................................................... 76

8.2.12 Goods exports as % of GDP .................................................................................................................... 77

8.2.13 Goods imports as % of GDP .................................................................................................................... 78

8.2.14 Goods Trade Surplus/Deficit as % of GDP............................................................................................... 79

8.2.15 Service Imports as % of GDP ................................................................................................................... 80

8.2.16 Service Exports as % of GDP ................................................................................................................... 81

8.2.17 Service Trade Surplus/Deficit as % of GDP ............................................................................................. 82

8.2.18 Foreign Direct Investment......................................................................................................................... 83

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

8.2.20 International reserves, including gold ....................................................................................................... 85

8.3 Energy and Utilities .......................................................................................................................86

8.3.1 Conventional Thermal Electricity Net Generation .................................................................................... 86

8.3.2 Conventional Thermal Electricity Installed Capacity ................................................................................ 87

8.3.3 Electricity Exports ..................................................................................................................................... 88

8.3.4 Electricity Imports ..................................................................................................................................... 89

8.3.5 Petroleum Consumption ........................................................................................................................... 90

8.4 Infrastructure .................................................................................................................................91

8.4.1 Rail Lines .................................................................................................................................................. 91

8.4.2 Air transport, freight .................................................................................................................................. 92

8.5 Minerals .........................................................................................................................................93

8.5.1 Mining, Manufacturing, Utilities Output ..................................................................................................... 93

8.6 Technology ....................................................................................................................................94

8.6.1 Patents Granted ........................................................................................................................................ 94

8.7 Telecommunication ......................................................................................................................95

8.7.1 Telephone Lines ....................................................................................................................................... 95

8.7.2 Telephone Lines Penetration Rate ........................................................................................................... 96

8.8 Technology ....................................................................................................................................97

8.8.1 Fixed Broadband Internet Subscribers ..................................................................................................... 97

9 Appendix .............................................................................................................................. 98

9.1 About SDI .......................................................................................................................................98


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9.2 Disclaimer ......................................................................................................................................98


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LIST OF FIGURES

Figure 1: Georgian Defense Expenditure (US$ Million), 2011–2015 .......................................................................................................... 16 Figure 2: Georgian Defense Expenditure (US$ Million), 2016–2020 .......................................................................................................... 17 Figure 3: Georgian Defense Expenditure (GEL Million), 2011–2015 .......................................................................................................... 18 Figure 4: Georgian Defense Expenditure (GEL Million), 2016–2020 .......................................................................................................... 19 Figure 5: Georgian GDP Growth versus Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2011–2015 ...... 21 Figure 6: Georgian GDP Growth versus Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2016–2020 ...... 22 Figure 7: Georgian Per-Capita Defense Expenditure (US$), 2011–2015 ................................................................................................... 23 Figure 8: Georgian Per-Capita Defense Expenditure, 2016–2020 ............................................................................................................. 24 Figure 9: Georgian Defense Budget Split between Capital and Revenue Expenditure (%), 2011–2015 ..................................................... 26 Figure 10: Georgian Defense Budget Split between Capital and Revenue Expenditure (%), 2016–2020 ................................................... 27 Figure 11: Georgian Defense Capital Expenditure (US$ Million), 2011–2015 ............................................................................................ 28 Figure 12: Georgian Defense Capital Expenditure (US$ Million), 2016–2020 ............................................................................................ 29 Figure 13: Georgian Defense Capital Expenditure (GEL Million), 2011–2015 ............................................................................................ 30 Figure 14: Georgian Defense Capital Expenditure (GEL Million), 2016–2020 ............................................................................................ 31 Figure 15: Georgian Defense Revenue Expenditure (US$ Million), 2011–2015 ......................................................................................... 32 Figure 16: Georgian Defense Revenue Expenditure (US$ Million), 2016–2020 ......................................................................................... 33 Figure 17: Georgian Defense Revenue Expenditure (GEL Million), 2011–2015 ......................................................................................... 34 Figure 18: Georgian Defense Revenue Expenditure (GEL Million), 2016–2020 ......................................................................................... 35 Figure 19: Georgian Homeland Security Expenditure (US$ Million), 2011–2015 ........................................................................................ 36 Figure 20: Georgian Homeland Security Expenditure (US$ Million), 2016–2020 ........................................................................................ 37 Figure 21: Georgian Homeland Security Expenditure (GEL Million), 2011–2015 ....................................................................................... 38 Figure 22: Georgian Homeland Security Expenditure (GEL Million), 2016–2020 ....................................................................................... 39 Figure 23: SDI Terrorism Heat Map, 2015 ................................................................................................................................................. 41 Figure 24: SDI Terrorism Index, 2015 ........................................................................................................................................................ 42 Figure 25: Benchmarking with Key Markets – 2011–2015 vs. 2016–2020 ................................................................................................. 46 Figure 26: Defense Expenditure of the World’s Largest Military Spenders (US$ Billion), 2015 and 2020 ................................................... 47 Figure 27: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2015 ............................................................ 48 Figure 28: Georgian Defense Import Trend, 2010–2014 (TIV values) ....................................................................................................... 52 Figure 29: Georgian Defense Imports by Country (%), 2010–2014 ............................................................................................................ 53 Figure 30: Georgian Defense Imports by Category (%), 2010–2014 .......................................................................................................... 54 Figure 31: Industry Dynamics — Porter’s Five Forces Analysis ................................................................................................................. 56 Figure 32: Georgian Rural Population (In Millions), 2015–2024 ................................................................................................................. 63 Figure 33: Georgian Urban Population (In Millions), 2015–2024 ................................................................................................................ 64 Figure 34: Georgian Number of Households (In Millions), 2008–2017 ....................................................................................................... 65 Figure 35: Local Currency per Euro, 2015–2024 ....................................................................................................................................... 70 Figure 36: Georgian Government Cash Surplus/Deficit as % of GDP, 2002–2011 ..................................................................................... 74 Figure 37: Georgian Central Government Debt (LCU Bn), 2002–2011 ...................................................................................................... 75 Figure 38: Georgian Central Government Debt as % of GDP, 2002–2011 ................................................................................................. 76 Figure 39: Georgian Goods Exports as % of GDP, 2002–2011 .................................................................................................................. 77 Figure 40: Georgian Goods Imports as % of GDP, 2002–2011 .................................................................................................................. 78 Figure 41: Georgian Goods Trade Surplus/Deficit as % of GDP, 2002–2011 ............................................................................................. 79 Figure 42: Georgian Service Imports as % of GDP, 2002–2011 ................................................................................................................ 80 Figure 43: Georgian Service Exports as % of GDP, 2002–2011 ................................................................................................................ 81 Figure 44: Georgian Service Trade Surplus/Deficit as % of GDP, 2002–2011 ........................................................................................... 82 Figure 45: Georgia Foreign Direct Investment (US$ Billion), 2002–2011 ................................................................................................... 83 Figure 46: Georgian Net foreign direct investment as % of GDP, 2002–2011 ............................................................................................ 84 Figure 47: Georgian International reserves, including gold (US$ Billion), 2002–2011 ................................................................................ 85 Figure 48: Georgian Conventional Thermal Electricity Net Generation (Billion Kilowatt hours), 2002–2011 ............................................... 86 Figure 49: Georgian Conventional Thermal Electricity Installed Capacity (Million Kilowatts), 2001–2010 ................................................ 87 Figure 50: Georgian Electricity Exports (Billion Kilowatt hours), 2003–2012 .............................................................................................. 88 Figure 51: Georgian Electricity Imports (Billion Kilowatt hours), 2003–2012 ............................................................................................... 89 Figure 52: Georgian Petroleum Consumption (Thousand Barrels Per Day), 2003–2012 ............................................................................ 90 Figure 53: Georgian Rail Lines (kms), 2002–2011 ..................................................................................................................................... 91 Figure 54: Georgian Air transport freight (million ton-km), 2002–2011 ....................................................................................................... 92 Figure 55: Georgian Mining, Manufacturing, Utilities Output (US$ Billion), 2002–2011 .............................................................................. 93


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Figure 56: Georgian Patents Granted, 2003–2012 .................................................................................................................................... 94 Figure 57: Georgian Telephone Lines (In Million), 2003–2012 ................................................................................................................... 95 Figure 58: Georgian Telephone Lines Penetration Rate (Per 100 People), 2003–2012 ............................................................................. 96 Figure 59: Georgian Fixed Broadband Internet Subscribers (Thousands), 2003–2012 .............................................................................. 97


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LIST OF TABLES

Table 1: Georgian Defense Expenditure (US$ Million), 2011–2015 ........................................................................................................... 16 Table 2: Georgian Defense Expenditure (US$ Million), 2016–2020 ........................................................................................................... 17 Table 3: Georgian Defense Expenditure (GEL Million), 2011–2015 ........................................................................................................... 18 Table 4: Georgian Defense Expenditure (GEL Million), 2016–2020 ........................................................................................................... 19 Table 5: Georgian GDP Growth versus Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2011–2015 ....... 21 Table 6: Georgian GDP Growth versus Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2016–2020 ....... 22 Table 7: Georgian Per-Capita Defense Expenditure (US$), 2011–2015..................................................................................................... 23 Table 8: Georgian Per-Capita Defense Expenditure, 2016–2020 ............................................................................................................... 24 Table 9: Georgian Defense Budget Split between Capital and Revenue Expenditure (%), 2011–2015 ...................................................... 26 Table 10: Georgian Defense Budget Split between Capital and Revenue Expenditure (%), 2016–2020 .................................................... 27 Table 11: Georgian Defense Capital Expenditure (US$ Million), 2011–2015 ............................................................................................. 28 Table 12: Georgian Defense Capital Expenditure (US$ Million), 2016–2020 ............................................................................................. 29 Table 13: Georgian Defense Capital Expenditure (GEL Million), 2011–2015 ............................................................................................. 30 Table 14: Georgian Defense Capital Expenditure (GEL Million), 2016–2020 ............................................................................................. 31 Table 15: Georgian Defense Revenue Expenditure (US$ Million), 2011–2015 .......................................................................................... 32 Table 16: Georgian Defense Revenue Expenditure (US$ Million), 2016–2020 .......................................................................................... 33 Table 17: Georgian Defense Revenue Expenditure (GEL Million), 2011–2015 .......................................................................................... 34 Table 18: Georgian Defense Revenue Expenditure (GEL Million), 2016–2020 .......................................................................................... 35 Table 19: Georgian Homeland Security Expenditure (US$ Million), 2011–2015 ......................................................................................... 36 Table 20: Georgian Homeland Security Expenditure (US$ Million), 2016–2020 ......................................................................................... 37 Table 21: Georgian Homeland Security Expenditure (GEL Million), 2011–2015 ......................................................................................... 38 Table 22: Georgian Homeland Security Expenditure (GEL Million), 2016–2020 ......................................................................................... 39 Table 23: SDI Terrorism Index ................................................................................................................................................................... 43 Table 24: Benchmarking with Key Markets – 2011–2015 vs. 2016–2020................................................................................................... 45 Table 25: Tbilisi Aircraft Manufacturing– Product Focus ............................................................................................................................ 61 Table 26: Tbilisi Aircraft Manufacturing – Alliances .................................................................................................................................... 62

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